Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q3 FY2017-18 Earnings Presentation
26 slides from Britannia Industries's earnings presentation, Feb 14, 2018
Slide 1: Analyst Meet Q3'17-18 Results Conference Call
Analyst Meet Q3’17-18 Results Conference Call 14th Feb 2018
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: Consistent performance over the years is our greatest source of motivation
“Consistent performance over the years is our greatest source of motivation” 2
Slide 4: Consistent Topline & bottomline results
Consistent Topline & bottomline results Net Profit (PAT) – Significant Topline – Consistency in growths improvement in profitability.. 8,963 885 Rs. Crs Rs. Crs 5,936 260 2012-13 2016-17 2012-13 2016-17 3 Consolidated Statutory results. NSV adjusted for comparison under IND AS.
Slide 5: Focus on basic execution is the underlying reason for our growth
“Focus on basic execution” is what we believe is the underlying reason for our growth 4
Slide 6: Our execution focus areas
Our execution focus areas.. 2 3 Increased Attain Cost distribution Leadership foot-print 1 4 Premiumizati Leverage on & Fixed Costs Innovation Drive Profitable growth.. 5
Slide 7: Delightful Innovation & activation of Brands in Q3
1. Delightful Innovation & activation of Brands in Q3.. Delightful Innovation Activation of brands Pure Magic Deuce – Choco & vanilla Bourbon – “Friends forever” Revamp of GD Chocolate Nutri Choice Activation 6
Slide 8: 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 Mar'15 Mar'16 Mar'17 Jun'17 Dec'17 March'14 March'15 March'16 March'17 Dec'17 Weak states continue to grow faster.. N 29.8 26.3 S 23.3 22.8 22.0 V 18.6 19.6 20.0 19.7
Slide 9: 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 LE Themes of cost efficiency:- 1. Reducing distance to market 2. New & large factories for efficiencies Nos indexed to
Slide 10: Technologically superior factories continue: Guwahati & SEZ plants
4. Our Journey of technologically superior factories continues with… greenfield plants at Guwahati & SEZ to be commercialized soon… 9
Slide 11: Our simple dream of being a Total Foods Company is powerful
Our simple dream of being a “Total Foods Company” is powerful 10
Slide 12: Actively working on New Categories & geography
We are actively working on New Categories & geography… Croissant – Project underway Dairy – Pilot Milk Collection Macro Snacking New Geography Cake & Rusk Innovation through new formats New Categories 11
Slide 13: Investments in capacities for the future
This is aided with investments in capacities for the future Ranjangaon, Maharashtra Integrated Food Park - Q1’18 (Also a milk belt and ideal location for Dairy) Product Categories Biscuits, Cake , Rusk, Croissant. Dairy & Innovation etc.. Backward integration 12 Milk Collection, Flour, Dairy for bak
Slide 14: Our core strength is our people
Our core strength is our people.. Building Design & Building Large food Sustain and Propel Capability to propel parks / International Culture for new business organization growth Expansion objectives DESIGN TALENT DEVELOPMENT New operational structures for organization growth & Provide skill develop
Slide 15: Other activities
Other activities... 14
Slide 16: Iron Deficiency Anemia and Severe Acute Malnutrition product solutions
Iron Deficiency Anemia and Severe Acute Malnutrition are the two key health concerns and Britannia is working on specific product solutions. • Specific Biscuits Anemia Status of children Malnutrition Status of children developed to address Anaemia among kids and Anaemia among Children NFHS – 4 Nutri
Slide 17: CSR program
CSR program.. Fortified the health of over 9 of our Factories executing 43,000 children across 2685 CSR programs, focusing on anganwadis in North Karnataka child and maternal nutrition no. of children 4000 no. of Iron 80, 000 fortified biscuit packs/ qtr Rudrapur Gwalior Hajipur Jhagadia Khurda Nutr
Slide 18: Q3 '17-18 results
BRITANNIA) Q3 ‘17-18 results 17
Slide 19: Strong top-line & volume growth on positive market momentum
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%) YTD 17-18 (9%) 2,537 2,558 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 Q Q Q
Slide 20: Inflation in commodities is stable
In the meantime, inflation in commodities is stable. 19
Slide 21: Overall costs are flat vs PY
Overall costs are flat vs PY. Rs./kg Rs./kg Flour Sugar Q3 deflation: 6% Q3 Inflation: 1% RPO Rs./kg Milk Rs./Ltr Q3 Inflation : 6% Q3 Deflation: 3% 20
Slide 22: Bottom line performance consistent due to cost efficiency and fixed cost leverage
Our bottom line performance has been consistent due to:- accelerated cost efficiency program leveraged fixed costs 21
Slide 23: Consistent profitability: Consolidated Operating Profit
Consistent profitability..` FY 14-15 (9.3%) FY 15-16 (13.2%) FY 16-17 (12.9%) YTD 17-18 (13.7%) 13.6% 14.3% 14.0% 13.2% 13.7% 13.1% 12.3% 12.5% 13.3% 344 366 Consolidated Operating Profit 13.4% 12.4% 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 Q Q Q Q
Slide 24: Financials
BRITANNIA) Financials 23
Slide 25: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q3’17-18 Growth % Net Sales 2,558 13% Profit from Operations 366 29% Profit Before Tax 399 25% Profit After Tax 264 20% Particulars Q1 Q2 Q3 11-12 12-13 13-14 14-15 15-16 16-17 (Consolidated) ’17-18 ’17-18 ’17-18 Profit from 4.6%
Slide 26: invrl@britindia.com
invrl@britindia.com 25
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