Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q4 FY2017-18 Earnings Presentation
27 slides from Britannia Industries's earnings presentation, May 17, 2018
Slide 1: Analyst Meet Q4'17-18 Results Conference Call
Analyst Meet Q4’17-18 Results Conference Call 17th May 2018 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: "17-18 has been a difficult but good year"
“17-18 has been a difficult but good year” 3
Slide 4: "Delivering consistent results has been our biggest motivation"
“Delivering consistent results has been our biggest motivation” 4
Slide 5: Consistent Topline & bottomline results
Consistent Topline & bottomline results Net Profit (PAT) – Significant Topline – Consistency in growths improvement in profitability.. 9,829 10.2% 1,004 Rs. Crs Rs. Crs 5,936 4.2% 260 2012-13 2017-18 2012-13 2017-18 Consolidated Statutory results. NSV adjusted for comparison under IND AS. 5
Slide 6: "We have also completed 100 years as a corporate"
“We have also completed 100 years as a corporate” 6
Slide 7: Milestones: Total Income, PBT and PAT
As we celebrate 100 years we have reached a few milestones Total Income PBT Rs. 10,000+ Crs Rs. 1,500+ Crs PAT Rs. 1,000+ Crs 7
Slide 8: "Focus on basic execution" is the reason for our performance
“Focus on basic execution” is what we believe is the underlying reason for our performance 8
Slide 9: Our execution focus areas
Our execution focus areas.. 1 2 Premiumization & Increased distribution foot- Innovation print Drive Profitable 3 growth.. 4 Attain Cost Leadership Leverage Fixed Costs 9
Slide 10: Delightful Innovation in Q4
1. Delightful Innovation in Q4.. Milk Bikis Good morning 50-50 Jeera Nutri Choice oats Choclate & Almond Revamp of Tiger Cookies 10
Slide 11: Increase in direct reach, growths in rural and weak states
2. Increase in direct reach, growths in rural and weak states.. Direct Reach – 2.5X increase Rural continues to grow in double digit 18.4 15.5 12.6 10.0 7.3 Mar'15 Mar'16 Mar'17 Mar'18 March'14 March'15 March'16 March'17 March'18 Weak states continue to grow faster.. 26.7 26.3 N 22.8 S 18.6 19.6 V 1
Slide 12: Accelerated cost efficiency program & leverage of fixed costs
3. Accelerated cost efficiency program & leverage of fixed costs Driving Cost efficiency across the chain.. With a culture across.. 4.5 3.1 2.2 1.8 1.0 13-14 14-15 15-16 16-17 17-18 Themes of cost efficiency:- 1. Reducing distance to market 2. New & large factories for efficiencies Nos indexed to FY
Slide 13: Technologically superior factories: Guwahati & Mundra commercialized
4. Our Journey of technologically superior factories continues with… greenfield plants at Guwahati & SEZ, Mundra have been commercialized 13
Slide 14: Our dream of being a "Total Foods Company"
Our simple dream of being a “Total Foods Company” is powerful 14
Slide 15: New Categories & geography
We are actively working on New Categories & geography… Croissant – Project underway Dairy – Milk Collection scale up Macro Snacking New Geography – 4th Country of operations Cake & Rusk Innovation through new formats New Categories 15
Slide 16: "You build people, and then people build the business"
We firmly believe “You don’t build a Business You build people And then People build the business” 16
Slide 17: Organization Structure – Building SBU focus
Organization Structure – Building SBU focus Managing Director ( Varun Berry) Front End Development Supply Chain Enabling Business Units VP - Supply VP – Sales VP - R & D & CFO VP– International Chain Quality (Gunjan Shah) (Vinay S (N Venkataraman) (Anindya Dutta) (Sudhir Nema) Kushwaha) General Mana
Slide 18: Investments in capacities for the future
This is aided with investments in capacities for the future Ranjangaon, Maharashtra Commercial production to start in Q1’18 Product Categories Biscuits, Cake , Rusk, Croissant. Dairy & Innovation etc.. Backward integration Milk Collection, Flour, Dairy for bakery, Warehousing, RM Storage 18
Slide 19: Q4 '17-18 results
BRITANNIA) O04 ‘17-18 results 19
Slide 20: Strong top-line & volume growth
Strong top-line & volume growth on the back of positive momentum in the market, Consolidated NSV as per Statutory results* FY 14-15 (15%) FY 15-16 (10%) FY 16-17 (8%) FY 17-18 (10%) 2,537 2,558 2,510 2,361 2,265 2,231 2,225 2,128 2,144 2,112 2,106 Rs. Crs. 1,987 1,941 1,912 1,964 1,732 Q Q Q Q Q Q Q
Slide 21: Inflation in commodities is stable
In the meantime, inflation in commodities is stable. 21
Slide 22: Overall costs are higher by 3% vs PY
Overall costs are higher by 3% vs PY. Rs./kg Rs./kg Flour Sugar Q4 deflation: 3% Q4 Deflation: 8% RPO Rs./kg Milk Rs./Ltr Q4 Inflation : 11% Q4 Deflation: 19% 22
Slide 23: Bottom line performance has been consistent
Our bottom line performance has been consistent due to:- accelerated cost efficiency program leveraged fixed costs 23
Slide 24: Consistent profitability – Consolidated Operating Profit
Consistent profitability.. FY 14-15 (9.3%) FY 15-16 (13.2%) FY 16-17 (12.9%) FY 17-18 (13.8%) 13.6% 14.3% 14.1% 14.0% 13.2% 13.1% 13.3% 366 355 12.4% 344 Consolidated Operating Profit 13.4% 12.3% 13.7% 12.5% 297 283 310 9.8% 9.3% 10.0% 288 284 275 295 261 259 Rs. Crs. 7.8% 191 204 187 138 Q Q Q Q Q
Slide 25: Financials
BRITANNIA) Financials 25
Slide 26: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q4’17-18 Growth % Net Sales 2,510 13% Profit from Operations 355 29% Profit Before Tax 396 29% Profit After Tax 264 25% Particulars Q1’ Q2’ Q3’ Q4’ 12-13 13-14 14-15 15-16 16-17 17-18 (Consolidated) 17-18 17-18 17-18 17-18 Profit
Slide 27: invrl@britindia.com
invrl@britindia.com
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