Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q3 FY2014-15 Earnings Presentation
34 slides from Britannia Industries's earnings presentation, Feb 4, 2015
Slide 1: Analyst Meet Mumbai 4th February 2015
Analyst Meet Mumbai 4th February 2015
Slide 2: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Po
Slide 3: We Embarked On A Journey: Strengthen our building blocks
We Embarked On A Journey ….. ……To Strengthen our building blocks • Revenue - Grow faster than market - Strengthen GTM - Invest in Brand Building • Cost - Focus on supply chain productivity & efficiencies - Tight control on capital & fixed cost - Large and technologically superior factories • Capabil
Slide 4: Revenue
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Slide 5: Challenging Economic Environment & Growth Slowdown Of FMCG & Food
In A Challenging Economic Environment & Growth Slowdown Of FMCG & Food… FMCG, Food and Biscuit Growth 18.0 FMCG Food Biscuit 16.0 14.0 % Value Growth (yoY) 12.0 10.0 8.0 6.0 4.0 2.0 0.0 May-13 Nov-13 May-14 Nov-14 Aug-13 Jul-14 Aug-14 Mar-13 Jul-13 Mar-14 Apr-13 Apr-14 Sep-13 Feb-14 Sep-14 Dec-14 Fe
Slide 6: Britannia Revenue Grew Faster Than Market
….Britannia Revenue Grew Faster Than Market Standalone FY 13-14 FY 14-15 1,801 1,834 1,594 1,614 1,620 1,618 1,403 Rs. Crs. Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Growth% 15% 14% 11% 9% 15% 13% 14% 24 months 27% 24% 30% 24% 32% 29% 27% growth%
Slide 7: Strengthened GTM
Strengthened GTM Increased depth of distribution Increased width of distribution in Urban (sales / store) in Rural (#stores) a SPOKE({S) cs Split Route Hub & Spoke model f, Total line sold increased ~ 25% No. of rural distributor increased ~ 50% ly | Direct Outlet Coverage Increased ~20%
Slide 8: Strengthened GTM
Strengthened GTM To drive rural growth in selected geographies and focused brands To drive urban extraction in top towns which contribute >70% of ECO Loyalty programs for high throughput retail outlets
Slide 9: Focussed Investment Behind Brands
Focussed Investment Behind Brands
Slide 10: Focussed Investment Behind Brands
Focussed Investment Behind Brands
Slide 11: With Increased Extraction From A&SP Spend
With Increased Extraction From A&SP Spend 1,900 NSV A & SP % 10.0% 9.0% 1,800 9.0% 8.4% 8.4% 8.4% 8.4% 8.2% 8.2% 1,700 8.1% 7.8% 7.0% 7.3% 7.6% 8.0% 7.5% 1,600 7.0% 6.9% 1,500 7.0% Rs. Crs % NSV 1,400 6.0% 1,300 5.0% 1,200 4.0% 1,100 1,000 3.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11-12 11-1
Slide 12: Cost
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Slide 13: Cost Leadership
Cost Leadership Manufacturing efficiency Waste Reduction (Tighter operating norms, (Automation, TQM, Kaizen, Lean) Recipe optimization) Energy optimization Distance travelled (Energy efficient ovens; (Reduced by 20% over last 3 years) ~40% of the production basis alternate fuel)
Slide 14: Strengthening Manufacturing Footprint & R&D Capability
Strengthening Manufacturing Footprint & R&D Capability Significant investment Larger & technologically planned over 18 months superior factories in capacity expansion Consolidate production State of the art R&D facility capacity planned
Slide 15: Commodity Prices Remain Moderate
Commodity Prices Remain Moderate.. Flour Price Sugar Price (FY 11-12 = 100) (FY 11-12 = 100) 116 133 135 135 128 114 121 133 111 100 108 110 104 100 FY FY FY Q1 Q2 Q3 FY FY FY Q1 Q2 Q3 11-12 12-13 13-14 14-15 14-15 14-15 11-12 12-13 13-14 14-15 14-15 14-15 Source: Market Prices
Slide 16: Commodity Prices Remain Moderate
Commodity Prices Remain Moderate.. Cashew Price SMP Price (FY 11-12 = 100) (FY 11-12 = 100) 105 137 100 97 127 81 94 110 123 79 76 104 100 81 FY FY FY Q1 Q2 Q3 FY FY FY Q1 Q2 Q3 11-12 12-13 13-14 14-15 14-15 14-15 11-12 12-13 13-14 14-15 14-15 14-15 Source: Market Prices
Slide 17: Commodity Prices Remain Moderate Except RPO Which Has Declined
Commodity Prices Remain Moderate Except RPO Which Has Declined.. RPO Price Butter Price (FY 11-12 = 100) (FY 11-12 = 100) 107 118 116 108 110 103 100 115 100 97 93 100 96 89 FY FY FY Q1 Q2 Q3 FY FY FY Q1 Q2 Q3 11-12 12-13 13-14 14-15 14-15 14-15 11-12 12-13 13-14 14-15 14-15 14-15 Source: Market Pri
Slide 18: Benefit of Benign Commodity Prices Passed On To Consumers
Benefit of Benign Commodity Prices Passed On To Consumers
Slide 19: Capability
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Slide 20: People
People Senior leadership Britannia for Britannians - More than 50% are in-house talent with average Britannia experience of greater than 10 years Others - Diverse experience in leading FMCG Companies Simplified Structure . A Larger role with increased span of control. rm @ ghee | aN Leaner & Account
Slide 21: Building Efficiency Across The Value Chain
Building Efficiency Across The Value Chain Sales, an example In Right With Right For Right Right Skill Place Effort Result KPI Revenue/Salesperson Value/Transaction Retail Availability
Slide 22: Superior Organoleptic Products
Superior Organoleptic Products
Slide 23: Significant Opportunities Ahead
Significant Opportunities Ahead …. Biscuit Market Huge potential in terms of Innovative products, Premiumisation of Categories etc….Yet to be exploited.. Cakes Rusk Dairy International Nascent Nascent Organised market… market… New Market size ~Rs. geographies yet 75K Crs Huge potential Huge potentia
Slide 24: As a result..
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Slide 25: Strong Profitable Growth
Strong Profitable Growth 1,900 11.0% 10.1% 9.7% NSV Profit from operations % 1,800 10.0% 9.2% 1,700 8.8% 8.6% 8.1% 9.0% 8.2% 1,600 7.9% 8.0% 1,500 Rs. Crs % NSV 5.3% 7.0% 1,400 5.7% 4.0% 5.2% 6.0% 1,300 4.9% 4.3% 5.0% 1,200 3.7% 1,100 4.0% 1,000 3.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11-1
Slide 26: In Summary…
In Summary… Focused on Fundamentals in bakery Successfully Executed Strategy Large Opportunity yet to be exploited (International, Dairy, Cake, Rusk, New Segments) New to market products launched and more in pipeline Continue to focus on fundamentals. Extract from adjacencies
Slide 27: The Journey Has Just Begun....
Mh im_—__—N Sa The Journey Has Just Begun....
Slide 28: Financials
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Slide 29: Key Lines – Standalone & Consolidated – Q3
Key Lines – Standalone & Consolidated –Q3 Rs. Crs. Re-stated Particulars (Standalone) Q3 2014-15 Growth % growth% * Net Sales 1,834 14% 14% Profit from Operations 169 27% 34% Profit Before Tax 177 28% 44% Profit After Tax 121 25% 40% Re-stated Particulars (Consolidated) Q3 2014-15 Growth % growth% *
Slide 30: Key Lines – Standalone & Consolidated – YTD Dec
Key Lines – Standalone & Consolidated – YTD Dec Rs. Crs. Re-stated Particulars (Standalone) YTD 2014-15 Growth % growth% * Net Sales 5,254 14% 14% Profit from Operations 475 23% 30% Profit Before Tax 679 68% 39% Profit After Tax 481 73% 38% Re-stated Particulars (Consolidated) YTD 2014-15 Growth % g
Slide 31: Key Performance Indicators - Standalone
Key Performance Indicators - Standalone YTD Dec YTD Dec 2014-15 Particulars 2011-12 2012-13 2013-14 2014-15 Restated* Profit from Operations % 4.7% 5.7% 8.6% 9.0% 9.6% Profit before Tax% 5.1% 6.0% 8.7% 12.9% 10.7% Profit after Tax% 3.8% 4.2% 5.9% 9.2% 7.3% Debt : Equity Ratio 0.8 0.3 0.0 0.0 0.0 * R
Slide 32: Key Performance Indicators - Consolidated
Key Performance Indicators - Consolidated YTD Dec YTD Dec 2014-15 Particulars 2011-12 2012-13 2013-14 2014-15 Restated* Profit from Operations % 4.6% 5.7% 8.0% 9.0% 9.5% Profit before Tax% 4.9% 5.8% 8.3% 12.5% 10.5% Profit after Tax% 3.7% 4.2% 5.8% 9.1% 7.4% Debt : Equity Ratio 1.5 0.7 0.2 0.1 0.1 *
Slide 33: Improved Subsidiary Profitability
Improved Subsidiary Profitability Profit from Operations Standalone Consolidated FY 13-14 FY 14-15* 202 197 182 178 138 140 148 147 142 148 133 139 114 118 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 * Excluding additional Depreciation impact as per Companies Act, 2013.
Slide 34: [email protected]
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