Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q4 FY2019-20 Earnings Presentation
21 slides from Britannia Industries's earnings presentation, Jun 3, 2020
Slide 1: Analyst Meet Q4'19-20 Results Conference Call
Analyst Meet Q4’19-20 Results Conference Call 3rd June 2020 1
Slide 2: Disclaimer / Safe Harbor Statement
Disclaimer / Safe Harbor Statement 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 v
Slide 3: Healthy growth and solid progress until the pandemic hit
Just when we started to witness healthy growths & very solid progress on all our building blocks, we were impacted by the pandemic.
Slide 4: Good performance in the quarter: Covid-19 impact on revenue and profit
Good performance in the quarter: Covid-19 impact between 7-10% on revenue & profit growth Revenue Profitability Consolidated Growth 24-month Growth PAT Growth PAT% 13.3% 2% 12% 26% (+260 bps) Market Share Britannia Largest Competitor 2nd Largest Competitor 20.0 32.0 Biscuit Market Share % 18.0 30.0
Slide 5: Our efforts to expand Distribution continued
In the first 2 months of the Quarter…. Our efforts to expand Distribution continued… Steady increase in Numeric Distribution Sustaining Direct Reach 21.0 22.2 18.4 15.5 In Lakhs In % 12.6 10.0 7.3 May-17 May-18 May-19 Sep-17 Sep-18 Sep-19 Mar-17 Jun-17 Jul-17 Oct-17 Nov-17 Mar-18 Jun-18 Jul-18 Oct-1
Slide 6: ….So did the focused Marketing campaigns
….So did the focused Marketing campaigns Goodday – Khushiyon NutriChoice Arroroot & Timepass Salted Cake Ki Zidd Cream Cracker refresh snacks Key Brands on air Good Day contextual print Little Hearts Valentines Pure Magic Chocolush + Marie Gold My StartUp 2.0 around Covid lockdown Day Digital Croiss
Slide 7: Adjacent Business performance
Adjacent Business performance Bread: High single digit growth Dairy: Maintained profitability with improvement in sequentially despite upsurge in profitability. milk prices. International: While Middle East continues to be challenging, Rest of International is growing high double digits. 7
Slide 8: Strategic position in Commodities helped manage inflation at ~4%
Our strategic position in Commodities helped us manage inflation at moderate levels of ~4% Rs./kg Rs./kg Flour Sugar Q4 Inflation: 2% Q4 Inflation: 5% 16-17 Q1'18 Q2 18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 16-17 Q1'18 Q2 18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Slide 9: Disclosure of impact of Covid on business
Disclosure of impact of Covid 19 on business 9
Slide 10: Four-pronged approach to overcome business impact
We used a Four-pronged approach to overcome business impact Ensure approvals to operate all depots & factories Run operations with desired level of safety & hygiene Ensure faster ramp up of operations Review all costs thread bare to drive profitable growth Disproportionate efforts by the team across
Slide 11: Approached Govt. by all means
#1. Ensured faster approvals to operate Approached Govt. by all means In first week MOCA (DPIIT), MOFPI, PMO Permission to operate: 1. All but 4 factories & 4 depots 2. 90%+ Distributors Industry bodies (FMBI, CII, FICCI) Current Permission to operate: State Govt., District Collector, Local police,
Slide 12: #2. Focus on safety & hygiene
#2. Focus on safety & hygiene Mandatory use of Masks & Social distancing norms Sanitizers Thermal screening Safe transport for workers Dormitory infra inside factories 12
Slide 13: #3. Ensured faster ramp up of operations - Sales
#3. Ensured faster ramp up of operations - Sales Enabled sales orders Enabled distributor point via Tele calling pick up for Retailers Distributor reach of 100% Distributor Retailer in first fortnight Mass Communication through Direct supplies to SMS for distributors Distributors Factory Distributor
Slide 14: #3. Ensured faster ramp up of operations – Supply Chain
#3. Ensured faster ramp up of operations – Supply Chain Ensured no disruption in Material Production prioritization supplies & developed Alternate vendors a. Less labour intensive b. High throughput Capacity utilization at c. Staples pre-covid levels Driving productivity with Defined Standard operat
Slide 15: #4. Review all costs
#4. Review all costs While there was increase in costs owing to overall environment: a. Safety requirement of Sanitizers, masks & social distancing b. Shortage of manpower c. Vehicle availability We neutralized the incremental costs with below measures: Focused Improved manpower Reduction in fixed W
Slide 16: Consolidated revenue growth of 24% in first 2 months of Q1'20-21
These efforts have resulted in consolidated revenue growth of 24% in the first 2 months of Q1’20-21
Slide 17: Financials
BRITANNIA Financials ee ———z—z——=———
Slide 18: Consolidated NSV
Revenue growth FY 17-18 (10%) FY 18-19 (12%) FY 19-20 (4%) 3,023 2,936 2,855 2,827 2,808 2,764 2,677 2,537 2,558 Consolidated NSV 2,510 2,527 2,225 Rs Crs. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Growth% 14% 13% 11% 10% 6% 6% 4% 2% 24 month growth% 20% 21% 25% 24% 20% 19% 15% 12%
Slide 19: Consolidated Operating Profit
Improved profitability FY 17-18 (13.8%) FY 18-19 (14.3%) FY 19-20 (14.5%) 14.8% 15.5% 14.6% 14.5% 14.5% 14.3% 14.1% 447 455 14.1% Consolidated Operating Profit 13.6% 14.0% 417 409 13.1% 406 390 13.3% 366 355 354 350 344 295 Rs Crs. Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 20: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Particulars (Consolidated) Q4’19-20 Growth % Net Sales 2,808 2% Operating Profit 406 4% Profit Before Tax 457* 2% Profit After Tax (Owner’s share) 375 26% Particulars 19-20 19-20 19-20 19-20 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 (Consolidated)
Slide 21: The team came together to deliver against the health & humanitarian crisis
The team came together to deliver against the staggering health & humanitarian crisis Hot meals Grocery Kits 7 Cities 9 Cities 26.5 Lakh 1.15 Lakh Kits meals 1.35 Crore Meal Equivalents Biscuit/Cakes/Rusk Migrants on their way home 2.25 Crore Meals/Snacks 31 Highway 19 States Points 90 Lakh Packs 3
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