Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q1 FY2015-16 Earnings Presentation
29 slides from Britannia Industries's earnings presentation, Aug 5, 2015
Slide 1: Analyst Meet Kolkata, 5th August 2015
Analyst Meet Kolkata 5th August 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: The Economic environment is becoming challenging across the FMCG sector
The Economic environment is becoming challenging with slowdown being witnessed across the FMCG sector…
Slide 4: FMCG's Run may Decelerate Further
FMCC's Run may Decelerate Further COLGATE PALMOLIVE, STOCK TAKING ON D-STREET Except for a few lke Britannia Industries and Emami, 2014-15 was a slow year for FMCG companies 35 high inflation eroded demand, But most preserved their margins s prices of Faw material softened: besides, many 7 ushed thr
Slide 5: However, we had a robust topline growth
However, we had a robust topline growth… FY 15-16 Standalone FY 13-14 (12%) FY 14-15 (14%) (13%) 1,801 1,834 1,847 1,829 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 Q 4 Q 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Growth% 15% 14% 11% 9% 15% 13% 14% 14% 13% 24 months 27% 24% 30% 24% 32% 29%
Slide 6: By Strengthening our Go to Market Strategy
By Strengthening our Go to Market Strategy…. Expanding our distribution in terms of direct reach [~80k outlets added in Q1] Focusing on expansion of Route to Market Strategy [Implemented in 13 cities in Q1 with ~20% NSV from RTM AWs] Driving Sales Efficacy through hand held devices [No. of Salesmen
Slide 7: With Significant Opportunities yet to be realized
With Significant Opportunities yet to be realized… Scope to Increase our share in the rural business [Our Rural MS is only ~2/3rd of our Urban MS] Scope to Increase our Numeric distribution [Our ND is at ~2/3rd of our nearest competitor] Scope to strengthen position in our weak states [Gujarat, MP,
Slide 8: By Focusing On Brand Building & Visibility
By Focusing On Brand Building & Visibility…. Association with marquee properties Britannia GoodDay ahead of key sponsors of IPL in Over 1.2lakh entries for the consumer terms of Top of Mind Recall & association with IPL activation
Slide 9: And By Continuing To Focus On Innovation
And By Continuing To Focus On Innovation MT Visibility – Window Displays Sampling – 1 mn POSM & Counter Top Display 850stores – 12000 stores consumers
Slide 10: With Increased Extraction From Trade Spends & Reduction in Market Returns
With Increased Extraction From Trade Spends & Reduction in Market Returns 100 100 100 93 74 73 66 69 FY 12-13 FY 13-14 FY 14-15 Q1 15-16 FY 12-13 FY 13-14 FY 14-15 Q1 15-16 FY 12-13 TL & Returns % indexed to 100
Slide 11: Meanwhile material prices have been benign
Meanwhile material prices have been benign…
Slide 12: With Prices of Key Commodities declining
With Prices of Key Commodities declining… Flour Price Sugar Price RPO (FY 11-12 = 100) (FY 11-12 = 100) (FY 11-12 = 100) 134 135 112 101 100 100 107 117 124 98 102 100 91 100 92 11-12 12-13 13-14 14-15 Q1'15-16 11-12 12-13 13-14 14-15 Q1'15-16 11-12 12-13 13-14 14-15 Q1'15-16
Slide 13: We have passed on the benefit to our consumers
We have passed on the benefit to our consumers to ensure competitiveness 20%
Slide 14: We have also maintained relentless focus on cost competitiveness
We have also maintained relentless focus on cost competitiveness…
Slide 15: Through the following measures
Through the following measures …. Manufacturing efficiencies [Through TQM, Kaizen, Lean etc.] Reduction in wastages [Through recipe optimization & tighter operating norms] Energy optimization [Energy efficient ovens; ~40% of the production basis alternate fuel] Larger & technologically superior fact
Slide 16: And we are building capability to ensure future readiness
And we are building capability to ensure future readiness….
Slide 17: People
People Senior Leadership team with diverse experience Larger role for young & dynamic professionals Leaner, accountable & motivated team Culture of competitive spirit Cross Functional team work
Slide 18: State of the art R&D facility planned
Research & Development State of the art R&D facility planned [Will come up in Q4 CY] To continue delivering superior organoleptic products……
Slide 19: As a result of these efforts
As a result of these efforts….
Slide 20: We Have Delivered Strong Profit Growth & Profitability
We Have Delivered Strong Profit Growth & Profitability Standalone 1,900 15.0% NSV Profit from operations % 1,800 13.0% 13.0% 1,700 1,600 10.1% 11.0% 9.7% 9.7% 1,500 9.2% 8.8% Rs. Crs % NSV 8.6% 8.1% 8.2% 9.0% 7.9% 1,400 1,300 7.0% 5.3% 1,200 4.9% 4.3% 5.0% 1,100 1,000 3.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 21: We are also confident we can exploit the significant opportunities ahead
We are also confident that we would be able to exploit the significant opportunities that lie ahead …
Slide 22: Significant Opportunities Ahead
Significant Opportunities Ahead …. Biscuit Market Huge potential in terms of Innovative products, Premiumisation of Categories etc….Yet to be exploited.. Dairy Cakes Rusk International Adjacencies Organised Nascent Nascent New Macro market… market… geographies Snacking Market size yet to be market ~
Slide 23: And we continue on the path of excellence
And we continue on the path of excellence…
Slide 24: Financials
Financials
Slide 25: Key Lines – Standalone & Consolidated – Q1
Key Lines – Standalone & Consolidated –Q1 Rs. Crs. Particulars (Standalone) Q1 2015-16 Growth % Net Sales 1,829 13% Profit from Operations 239 79% Profit Before Tax 257 68% Profit After Tax 168 56% Particulars (Consolidated) Q1 2015-16 Growth % Net Sales 2,003 13% Profit from Operations 261 90% Prof
Slide 26: Key Performance Indicators - Standalone
Key Performance Indicators - Standalone Particulars 2011-12 2012-13 2013-14 2014-15 Q1’15-16 Profit from Operations % 4.7% 5.7% 8.6% 9.2% 13.0% Profit before Tax% 5.1% 6.0% 8.7% 12.4% 14.0% Profit after Tax% 3.8% 4.2% 5.9% 8.8% 9.2% Debt : Equity Ratio 0.8 0.3 0.0 0.0 0.0 Source: Company Financials
Slide 27: Key Performance Indicators - Consolidated
Key Performance Indicators - Consolidated Particulars 2011-12 2012-13 2013-14 2014-15 Q1’15-16 Profit from Operations % 4.6% 5.7% 8.0% 9.3% 13.0% Profit before Tax% 4.9% 5.8% 8.3% 12.2% 13.9% Profit after Tax% 3.7% 4.2% 5.8% 8.9% 9.5% Debt : Equity Ratio 1.5 0.7 0.2 0.1 0.1 Source: Company Financial
Slide 28: Improved Subsidiary Profitability
Improved Subsidiary Profitability Profit from Operations Standalone Consolidated FY 13-14 FY 14-15 FY 15-16 261 239 202 197 204 182 178 179 138 140 133 139 148 147 142 148 114 118 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1
Slide 29: [email protected]
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