Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q4 FY2023-24 Earnings Presentation
26 slides from Britannia Industries's earnings presentation, May 6, 2024
Slide 1: Analyst Meet / Q4'23-24 Results / Conference Call
Analyst Meet/ Q4’23-24 Results/ Conference Call 6th May 2024
Slide 2: Disclaimer / Safe Harbor Statement
Disclaimer / Safe Harbor Statement This presentation may contain statements which reflect w w w . b r i t a n n i a . c o . i n 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 t
Slide 3: Macro Environment
Macro Environment India steering well amidst Global Slowdown Private Consumption Spends remain subdued Real GDP PFCE GFCF India Real GDP Growth YoY w w w . b r i t a n n i a . c o . i n 10.2% YoY Growth % 7.0% 6.8% 6.6% 7.6% 7.6% 7.0% 6.8% 3.0% 6.5% FY 17-18 FY 18-19 FY 22-23 FY 23-24 E FY 22-23 FY
Slide 4: Performance Update
BRITANNIA Performance Update
Slide 5: Performance Scorecard – FY 23-24
Performance Scorecard – FY 23-24 Revenue from Operations Revenue from Operations Revenue from Operations FY 23-24 12 months 24 months Growth Growth w w w . b r i t a n n i a . c o . i n Rs 16,546 Crore +4% +19% Operating Profit % Operating Profit Operating Profit FY 23-24 12 months 24 months Growth
Slide 6: Performance Scorecard – Q4'24
Performance Scorecard – Q4’24 Revenue from Operations Revenue from Operations Revenue from Operations Q4’24 12 months 24 months Growth Growth w w w . b r i t a n n i a . c o . i n Rs 4,014 Crore +3% +14% Operating Profit % Operating Profit Operating Profit Q4’24 12 months 24 months Growth Growth 17.
Slide 7: Market Share – Rebounding post challenges in H1
Market Share – Rebounding post challenges in H1 Britannia Largest Competitor 2nd Largest Competitor X 20 32 18 w w w . b r i t a n n i a . c o . i n Biscuit Market Share % 27 0.77 X 16 14 22 12 17 10 0.28 X 12 8 EXIT 2020-21 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2021-22 202
Slide 8: Strategic Pillars to drive a profitable growth
Distribution & Marketing Strategic w w w . b r i t a n n i a . c o . i n Lead Innovation Pillars to drive a Drive Profitable growth.. Adjacent Business profitable growth Cost Efficiency Sustainability 8
Slide 9: Driving efficiencies in Distribution
Driving efficiencies in Distribution Expanding Direct Reach Strengthening Rural Distribution No of Outlets in Lakhs 27.9 28k 30k (Rural Distributors) 26.8 26k 24.9 No of RPDs 23.7 23k 19k w w w . b r i t a n n i a . c o . i n 21.0 18k 19.7 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Mar'19 Mar'20 Mar'
Slide 10: Enhancing capabilities in organized channels for better extraction
Enhancing capabilities in organized channels for better extraction.. Organized channel growths – FY24 Building Blocks w w w . b r i t a n n i a . c o . i n Building future-ready organization New Businesses Leveraging modern marketing methods (Digital, Social Media) Adjacent Businesses Front to Innov
Slide 11: RTM 2.0 – Unlock Growth Potential
RTM 2.0 – Unlock Growth Potential RTM 1.0 - Split Salesmen RTM 2.0 – 2024 Implemented in 2015 Objective: Multiply Adjacent Been yielding handsome business revenues while growths over the years continue to build core w w w . b r i t a n n i a . c o . i n Transformations in Distribution Re-write “Outl
Slide 12: Sustained marketing support to drive consumer engagement
Sustained marketing support to drive consumer engagement.. w w w . b r i t a n n i a . c o . i n Good Day - TVC Marie Gold – TVC NutriChoice - TVC IPL Integration Associating Winkin Cow with Cow Corner shots Milk Milk Bikis Bikis -- TVC TVC Rusk – Communication Milk Shakes – Second Summer 12
Slide 13: Modern Marketing to connect with Youth & All, leveraging Digital & Social
Modern Marketing to connect with Youth & All, leveraging Digital & Social GD Admin = 4 witty Cookie personas Bank of Small Wins HerStore – India’s first exclusive online ecosystem for women-run businesses Products & services w w w . b r i t a n n i a . c o . i n 0% commission Relatable Meme Trends &
Slide 14: Measured Pricing actions to remain competitive
Measured Pricing actions to remain competitive Strategic Pricing Actions in key SKUs & Markets Tactical Consumer Promotions to drive consumption w w w . b r i t a n n i a . c o . i n 14
Slide 15: Innovation to fuel next phase of growth
Innovation to fuel next phase of growth Consistent performance of In-market Innovation / Renovation w w w . b r i t a n n i a . c o . i n Fresh launches during the quarter Good Day – Fruit & Nut cookies Cake Rusk Bourbon – Milk Shake 15 Revenue contribution of these products at Rs 275+ Crs (Annualiz
Slide 16: Adjacent Businesses remain on strong footing
Adjacent Businesses remain on strong footing Bakery Dairy Dairy w w w . b r i t a n n i a . c o . i n Adjacency Cake – Base formats did well in traditional trade; Cheese – Double digit growth in India business Speciality products leverage E-com with healthy Sustainable Differentiated cheese continue
Slide 17: Cost efficiencies across verticals
Cost efficiencies across verticals.. MARKET RENEWABLE Stepped-up Cost Reduction.. DAMAGES ENERGY w w w . b r i t a n n i a . c o . i n 7x DISTANCE FUEL TRAVELLED CONSUMPTION 2023-2024 5x 2020-2021 TRUCK LINE 3x UTILIZATION THROUGHPUT 2016-2017 1x 2013-2014 17
Slide 18: ESG – Building a sustainable profitable business
ESG – Building a sustainable profitable business ESG Construct - Top Quartile in FMCG India in Identified as one of the 1000 engagement score Leading Listed ESG firms by 4 strategic pillars Dun & Bradstreet o Growth (Economic) 2.3 Lac beneficiaries through BNF Vs o Governance w w w . b r i t a n n i
Slide 19: Cost & Profitability
BRITANNIA Cost & Profitability
Slide 20: Overall commodity costs remained soft this quarter
w w w . b r i t a n n i a . c o . i n 20 Q1'22 1.0x Q2'22 Q3'22 Vs LY : +7% Q4'22 Vs LQ : +1% Q1'23 Q2'23 Flour Q3'23 Q1'22 Q4'23 1.0x Q2'22 Q1'24 Q3'22 Q2'24 Q4'22 Q3'24 Q1'23 1.4x Q4'24 Q2'23 Note: Above values are average actual consumption rates for the quarter Q3'23 Q1'22 Laminates 1.0x Q4'23 Q
Slide 21: Cost & Profitability Front Outlook
COST & PROFITABILITY FRONT OUTLOOK w w w . b r i t a n n i a . c o . i n Continued to invest behind brands & innovation We are closely monitoring commodity situation & assessing its impact. Actioned measured pricing actions in specific We remain vigilant of the competitive pricing channels to drive
Slide 22: Financial Result
BRITANNIA Financial Result
Slide 23: Consolidated Revenue from Operations
Revenue trends 12-month growth% 26% 11% 6% 8% -1% 6% 14% 15% 9% 22% 16% 11% 9% 1% 2% 3% 24-month growth% 34% 17% 10% 10% 25% 18% 20% 25% 8% 29% 32% 28% 18% 23% 19% 14% Consolidated Revenue from Operations FY 19-20 (4%) FY 20-21 (13%) FY 21-22 (8%) FY 22-23 (15%) FY 23-24 (4%) w w w . b r i t a n n i
Slide 24: Consolidated Operating Profit
Operating Profit trends 12-month growth% 91% 40% 24% 12% -25% -19% -13% 10% -11% 30% 55% 47% 37% 21% -2% -4% 24-month growth% 89% 50% 38% 16% 44% 14% 7% 23% -33% 5% 35% 63% 22% 58% 52% 42% FY 19-20 (14.5%) FY 20-21 (17.9%) FY 21-22 (14.3%) FY 22-23 (16.3%) FY 23-24 (17.3%) w w w . b r i t a n n i a
Slide 25: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q4 23-24 FY 23-24 Particulars 12-month 24-month 12-month 24-month Rs Crs Rs Crs Growth % Growth % Growth % Growth % Net Sales 4,014 3% 14% 16,546 4% 19% w w w . b r i t a n n i a . c o . i n Operating Profit 708 -4% 42% 2,869 10% 43% Profit Before Tax (P
Slide 26: Thank You!
BRITANNIA Thank You!
Britannia Industries — Q4 FY2023-24 Earnings Presentation on 6ix