Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q4 FY2018-19 Earnings Presentation
22 slides from Britannia Industries's earnings presentation, May 2, 2019
Slide 1: Analyst Meet Q4'18-19 Results Conference Call
Analyst Meet Q4’18-19 Results Conference Call 2nd May 2019 1
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: Our performance over the years has been consistent
“Our performance over the years has been consistent” 3
Slide 4: Consistent topline growth
Consistent topline growth 10,973 9,830 8,962 8,325 7,775 6,829 6,136 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Consolidated Reported Net sales net of Excise duty 4
Slide 5: Improved Operating profit
Improved Operating profit CAGR – 29% 1,800 13.8 14.3 1,600 13.2 12.9 1,572 14.0 1,400 1,360 12.0 1,200 1,101 1,159 9.3 Rs. Crs 10.0 8.0 1,000 800 719 8.0 600 5.7 544 6.0 400 347 4.0 200 - 2.0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Operating Profit Rs. Crs % to Net Sales Operating pr
Slide 6: Biscuit Market Share %
Gained share every year Britannia Largest Competitor 33.0 32.0 Biscuit Market Share % 31.0 30.0 29.0 28.0 27.0 26.0 25.0 24.0 12-13 13-14 14-15 15-16 16-17 17-18 18-19 Exit (Q4) As per AC Nielsen 6
Slide 7: Rated the No.1 Food Brand
Rated the No.1 Food Brand 7
Slide 8: Refreshed identity: Total Foods Company
We also refreshed our identity in line with our goal to be a “Total Foods Company” 8
Slide 9: Our Strategic Planks..
Our Strategic Planks.. #3 Distribution #2 Momentum #4 New categories Cost Efficiency #1 #5 Drive Heightened Adjacent Profitable Innovation Business growth.. Team – Nimble, Home grown, Stable, Britannia for Britannians 9
Slide 10: #1 Innovation – Biscuits..
#1 Innovation – Biscuits.. Treat Burst (Democratisation) Treat Stars (New to Market) New Launches in Q4 Whole Wheat Marie Milk Bikis Choco Cream 10
Slide 11: Innovation - Cakes
Innovation - Cakes Bar Cake Veg Cake Tiffin Fun Relaunch of Cake portfolio Veg Muffils Swiss Rolls Layer Cake Brownie New Formats
Slide 12: #2. New categories launched
#2. New categories launched Wafers Milk Shakes Croissant Salted Snacks 2 Variants: • Chocolate • Vanilla 12
Slide 13: #3. Distribution Momentum continues..
#3. Distribution Momentum continues.. Rural distribution increase and growing Direct Reach – 2.9X increase in double digit… 21.0 18.4 15.5 18,100 (Rural Preferred 14,400 12.6 No of RPDs 10,000 Dealers) 10.0 6,600 8,000 7.3 March'14 March'15 March'16 March'17 March'18 March'19 Mar'15 Mar'16 Mar'17 Ma
Slide 14: #4. Cost efficiency program..
#4. Cost efficiency program.. Driving Cost efficiency across the chain.. With a culture across.. 4.5 4.5 3.1 2.2 1.8 1.0 13-14 14-15 15-16 16-17 17-18 18-19 Indexed to year 13-14 14
Slide 15: #5 Adjacent Business
#5 Adjacent Business Bread: Growth in double digits with profitability improvement. Expansion in South underway. Dairy: Growth in Double digits on the back of Milk shakes launch & growths in Cheese. International: Growth in single digit due to slow down in Middle East. Nepal local operations commenc
Slide 16: Q4 '18-19 results
Q4 ‘18-19 results 16
Slide 17: Strong top-line & volume growth
Strong top-line & volume growth Consolidated NSV as per Statutory results* FY 15-16 (10%) FY 16-17 (8%) FY 17-18 (10%) FY 18-19 (12%) 2,855 2,827 2,764 2,537 2,558 2,510 2,527 2,361 Rs. Crs. 2,265 2,231 2,225 2,128 2,144 2,112 2,106 1,941 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3
Slide 18: Commodity.. Overall inflation at ~3%
Commodity.. Overall inflation at ~3% Rs./kg Rs./kg Flour Sugar Q4 inflation: 9% Q4 Deflation: 8% RPO Rs./kg Milk Rs./Ltr Q4 Deflation : 5% Q4 Deflation: 9%
Slide 19: Our bottom line performance has been consistent
Our bottom line performance has been consistent due to:- accelerated cost efficiency program leveraged fixed costs 19
Slide 20: Consistent Profitability
Consistent Profitability FY 15-16 (13.2%) FY 16-17 (12.9%) FY 17-18 (13.8%) FY 18-19 (14.3%) 14.6% 14.5% 13.6% 14.3% 14.0% 14.1% 14.1% 417 409 13.3% 390 Consolidated Operating Profit 14.0% 13.7% 13.1% 12.4% 366 12.5% 344 355 354 13.4% 13.2% 12.3% 297 310 295 283 288 284 275 Rs. Crs. 261 259 Q Q Q Q
Slide 21: Financials
Financials 21
Slide 22: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q4’18-19 Growth % Net Sales 2,764 10% Profit from Operations 390 10% Profit Before Tax 450 14% Profit After Tax 297 13% Particulars 18-19 18-19 18-19 18-19 12-13 13-14 14-15 15-16 16-17 17-18 18-19 (Consolidated) Q1 Q2 Q3 Q4 Prof
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