Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q2 FY2023-24 Earnings Presentation
32 slides from Britannia Industries's earnings presentation, Nov 2, 2023
Slide 1: Cover letter to stock exchanges for analyst call presentation
2nd November, 2023 To The Secretary, The Manager - Listing Department, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, G-Block, Bandra-Kurla Complex, Dalal Street, Fort, Mumbai - 400 001 Bandra (East), Mumbai – 400 051 Security code: 500825 Symb
Slide 2: Analyst Meet/ Q2'23-24 Results/ Conference Call
Analyst Meet/ Q2’23-24 Results/ Conference Call 2nd November 2023
Slide 3: 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 4: Economic recovery post Covid with inflationary pressure easing over time
Economic recovery post Covid with Inflationary pressure easing over time.. Real Growth Inflation GDP (Rs Lakh Crore) 272.4 234.7 w w w . b r i t a n n i a . c o . i n 201 198.3 189 170.9 18.4% 16.1% 9.3% 70.7 11.0% 10.6% 8.8% 4.2% 8.0% 4.1% 6.4% 0.2% 2.5% 9.1% 6.8% 6.5% 7.2% 7.8% 3.9% 4.5% -5.8% -1.
Slide 5: Britannia's playing field is large & growing faster
Britannia’s playing field is large & growing faster.. Gross Domestic Product Total Food & Beverages – Leading indicators Rs. 235 Trillion 5 Yr CAGR - 9% w w w . b r i t a n n i a . c o . i n Average F&B Consumption Occasions per day on a rise Total Foods & Beverages Rs. 40 Trillion 5.1 5 Yr CAGR - 1
Slide 6: Britannia's playing field is large & growing faster
Britannia’s playing field is large & growing faster.. Branded Food & Beverages – Leading Indicators Gross Domestic Product Increasing Women Work Participation1 Rs. 235 Trillion 25.4 25.0 25.4 25.6 24.6 23.2 2015-16 5 Yr CAGR - 9% w w w . b r i t a n n i a . c o . i n 2019-21 Overall Urban Rural Tota
Slide 7: Increasing Urbanization & Opportunity in Rural
Increasing Urbanization & Opportunity in Rural India Population in Crores Opportunity in Rural Urban Rural 124.3 125.9 127.5 129.1 130.5 132.0 133.4 134.9 136.3 137.6 138.8 Rural Urban 121.1 122.7 1.3x w w w . b r i t a n n i a . c o . i n 67.2% 66.9% 66.5% 66.2% 65.9% 65.6% 65.2% 64.9% 1.2x 68.9% 6
Slide 8: Growth potential for categories other than Biscuits
Growth potential for categories other than Biscuits Category Household Penetration % Opportunity Market % 6 10 18 w w w . b r i t a n n i a . c o . i n 47 50 58 79 97 94 90 82 53 50 42 21 3 Biscuits Bread Rusk Cakes Dairy Wafer Cheese Croissant Drinks Cream Biscuits Consumption led growth Penetratio
Slide 9: We are well positioned to leverage these opportunities
We are well positioned to leverage these opportunities & deal with evolving changes.. and continue to enhance our capabilities..
Slide 10: Building blocks from Strength to Strength over the last decade
Building blocks from Strength to Strength over the last decade Categories & w w w . b r i t a n n i a . c o . i n Distribution Brands Innovation Partnerships Geographies Direct reach up Rs 1,000 Crores Club Revenue contribution New categories Strategic alliances with of Innovations over entered lead
Slide 11: Building blocks from Strength to strength over the last decade
Building blocks from Strength to strength over the last decade Own Cost w w w . b r i t a n n i a . c o . i n Digital Sustainability People Manufacturing Efficiencies Own manufacturing at Decade long effort of cost Rapidly evolving Digital Top 30 Top 15 Best employers – 65% efficiency marketing envi
Slide 12: Consistent high performance over the past decade
Consistent high performance over the past decade Consistent growth Profitable growth Long term value creation ₹ 16,300 16.3% 18X w w w . b r i t a n n i a . c o . i n Cr FY 2023 turnover FY 2023 Operating profit Market Capitalization 10% 25% 32% CAGR growth CAGR growth CAGR growth 11
Slide 13: Further, enhancing capabilities to become future ready
Further, enhancing capabilities to become future ready.. w w w . b r i t a n n i a . c o . i n xx Re-write Route-To-Market Improve Planning Process for Core & Adjacent categories for improved Order Fulfilment through Data Analytics & Artificial Intelligence 12
Slide 14: Q2'24 Performance Update
BRITANNIA Q2’24 Performance Update
Slide 15: Healthy topline and bottomline growths over 24-months
Healthy topline & bottomline growths over 24-months Revenue from Operations Strengthening Market Leadership Position Britannia Largest Competitor 2nd Largest Competitor w w w . b r i t a n n i a . c o . i n 24-month 12-month Growth Growth 20 23% 1% 30 18 Biscuit Market Share % 16 25 Operating Profit
Slide 16: 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 15
Slide 17: Driving efficiencies in Distribution
Driving efficiencies in Distribution Expanding Distribution footprint Focus States grow faster Direct Reach Indirect Reach Total Reach FY 20-21 FY 21-22 FY 22-23 H1'24 w w w . b r i t a n n i a . c o . i n 66.2 29% 63.7 64.2 62.1 25% 57.0 53.9 23% 22% NSV Growth % No of Outlets in Lakhs 37.3 38.4 38
Slide 18: Stepped-up investments to support brand & remain competitive
Stepped-up investments to support brand & remain competitive Biscuits – Key marketing activities Adjacent categories – Key activities Communication to Awareness of Superior Cheese – Driving drive Core in Cake recipe in Rusk Innovation w w w . b r i t a n n i a . c o . i n Good Day - TVC 50-50 - TVC
Slide 19: Innovation to fuel next phase of growth
Innovation to fuel next phase of growth w w w . b r i t a n n i a . c o . i n 18 Revenue contribution of these products at Rs 200+ Crs (Annualized)
Slide 20: Adjacent Businesses remains on strong footing
Adjacent Businesses remains on strong footing Bakery Dairy Dairy w w w . b r i t a n n i a . c o . i n Adjacency Cake – Innovations continue to outperform - Big Cheese - High double-digit growths, contributed by Swiss Roll, Brownies & Cupcake LUP Sustainable Base & Differentiated formats Rusk – Topl
Slide 21: 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 20
Slide 22: Setting up technologically superior factories
Setting up technologically superior factories Our recent additions in Uttar Pradesh & w w w . b r i t a n n i a . c o . i n Tamil Nadu are operating at desired efficiencies Further, capacity & capability enhancements are Bihta, Bihar planned in Commercialized in Q2 23-24 Ranjangaon 3 Product lines (
Slide 23: ESG – Building a sustainable profitable business
ESG – Building a sustainable profitable business ESG Construct - Top Quartile in FMCG India in engagement score 1.13% reduction in sugar Vs 21-22 2.2 Lac beneficiaries through BNF Vs 1.98 Lac in 5.01% reduction in sodium Vs 21-22 4 strategic pillars 21-22 o Growth (Economic) o Governance w w w . b r
Slide 24: "My Plate My Nutrition" initiative
“My Plate My Nutrition” initiative Launched in September’23, along Executed by our with Govt initiative of Change agents on w w w . b r i t a n n i a . c o . i n “Poshan Mah” ground at community (Nutrition Month) & school levels Concept champions inclusion of 5 Augmented by essential food groups cre
Slide 25: Cost & Profitability
BRITANNIA Cost & Profitability
Slide 26: Overall commodity costs softened this quarter
w w w . b r i t a n n i a . c o . i n 25 Q1'21 1.0x Q2'21 Q3'21 Q4'21 Vs LY : +6% Vs LQ : +5% Q1'22 Q2'22 Q3'22 Q4'22 Flour Q1'21 Q1'23 1.0x Q2'21 Q2'23 Q3'21 Q3'23 Vs LQ : -2% Vs LY : -16% Q4'21 Q4'23 Q1'22 Q1'24 Q2'22 1.3x Q2'24 Q3'22 Q4'22 Q1'21 Laminates 1.0x Q1'23 Q2'21 Q2'23 Q3'21 Q3'23 Vs LQ
Slide 27: Cost & Profitability Front Outlook
COST & PROFITABILITY FRONT OUTLOOK w w w . b r i t a n n i a . c o . i n We are closely monitoring stock-price situation of Continued to invest behind brands & innovation commodities amidst ongoing strife in Middle East & Russia We remain vigilant of the competitive pricing Delivered Cost efficienci
Slide 28: Financial Result
BRITANNIA Financial Result
Slide 29: Consolidated Revenue from Operations
Healthy topline growth over 24-month period 12-month growth% 26% 11% 6% 8% -1% 6% 14% 15% 9% 22% 16% 11% 9% 1% 24-month growth% 34% 17% 10% 10% 25% 18% 20% 25% 8% 29% 32% 28% 18% 23% Consolidated Revenue from Operations FY 19-20 (4%) FY 20-21 (13%) FY 21-22 (8%) FY 22-23 (15%) H1 (4%) w w w . b r i
Slide 30: Consolidated Operating Profit
Operating profits grew handsomely.. 12-month growth% 91% 40% 24% 12% -25% -19% -13% 10% -11% 30% 55% 47% 37% 21% 24-month growth% 89% 50% 38% 16% 44% 14% 7% 23% -33% 5% 35% 63% 22% 58% FY 19-20 (14.5%) FY 20-21 (17.9%) FY 21-22 (14.3%) FY 22-23 (16.3%) H1 (17.0%) w w w . b r i t a n n i a . c o . i
Slide 31: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q2 23-24 Particulars Rs Crs 12-month Growth % 24-month Growth % Net Sales 4,370 1% 23% w w w . b r i t a n n i a . c o . i n Operating Profit 801 21% 58% Profit Before Tax (PBT) 799 21% 53% Profit After Tax (Owner’s share) (PAT) 588 19% 53% Particulars 1
Slide 32: Thank You!
BRITANNIA Thank You!
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