Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q1 FY2025 Earnings Presentation
29 slides from Britannia Industries's earnings presentation, Aug 5, 2024
Slide 1: Exchange cover letter: Analysts Call Presentation and recording link
5th August, 2024 To, Corporate Relations Department 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 Scrip Code: 500825 Scrip C
Slide 2: Analyst Meet / Q1'24-25 Results / Conference Call
Analyst Meet/ Q1’24-25 Results/ Conference Call 5th Aug 2024
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: Macro Environment
Macro Environment Healthy Consumption Scenario Rural growths ahead of Urban in Q4FY24 FMCG Growth % FMCG Volume Growth % in Rural & Urban Value Rural Volume Urban w w w . b r i t a n n i a . c o . i n 12.2% 10.2% 10.1% 10.2% 9.0% 8.6% 7.6% 7.5% 6.4% 6.9% 6.0% 6.4% 6.6% 6.5% 5.8% 5.7% 5.2% 4.0% 3.1%
Slide 5: Performance Update
BRITANNIA Performance Update
Slide 6: Performance Scorecard – Q1'25
Performance Scorecard – Q1’25 Revenue from Operations Revenue from Operations Revenue from Operations Q1’25 12 months 24 months Growth Growth w w w . b r i t a n n i a . c o . i n Rs 4,130 Crore +4% +13% Operating Profit % Operating Profit Operating Profit Q1’25 12 months 24 months Growth Growth 16.
Slide 7: Market Share – Rebounding, post challenges in FY24
Market Share – Rebounding, post challenges in FY24 Britannia Largest Competitor 2nd Largest Competitor 20 32 18 Biscuit Market Share % w w w . b r i t a n n i a . c o . i n 27 16 14 22 12 17 10 12 8 Q1 24-25 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023
Slide 8: 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 7
Slide 9: Driving efficiencies in Distribution
Driving efficiencies in Distribution Expanding Direct Reach Uptick in Rural Distribution No of Outlets in Lakhs 27.9 28.2 30k 30k 28k (Rural Distributors) 26.8 26k No of RPDs 24.9 23k 23.7 19k w w w . b r i t a n n i a . c o . i n 18k 21.0 19.7 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Jun'24 Mar'19
Slide 10: Tech-enabled Sales Transformation
Tech-enabled Sales Transformation Digital Infrastructure in Sales Rewriting Route-to-Market Driving Efficiency & Throughput Leveraging Data Analytics & Artificial Intelligence Leverage High w w w . b r i t a n n i a . c o . i n Potential Outlets Upscale Salesmen Increase feet Distributor Management
Slide 11: Enhancing capabilities in organized channels for better extraction
Enhancing capabilities in organized channels for better extraction.. Organized channel growths – Q1’25 Building Blocks w w w . b r i t a n n i a . c o . i n Agile Supply Chain New Businesses Modern Marketing – Social, Digital means Adjacent Businesses Upskill Salesmen Biscuits Best-in-class service
Slide 12: Building Channel of Future – E-Commerce
Building Channel of Future – E-Commerce Testbed for Product Ideas w w w . b r i t a n n i a . c o . i n Innovation & New based on Social Categories Media trends Precision Targeting Consumer & Content for Feedback from conversion Reviews & Ratings 11
Slide 13: Sustained Investments in Brand to drive consumer engagement
Sustained Investments in Brand to drive consumer engagement.. Key Marketing Initiatives in Biscuits w w w . b r i t a n n i a . c o . i n Driving consumption, riding on Passion for Sports beyond Cricket – Across Brands JimJam Pops – Celebrating India WC Victory Brand Refresh NutriChoice Digestive To
Slide 14: Sustained Investments in Brand to drive consumer engagement
Sustained Investments in Brand to drive consumer engagement.. Marketing Initiatives in Adjacent categories Tactical Consumer Promotions w w w . b r i t a n n i a . c o . i n Rusk – TVC on Jio Mobile App Winkin Cow – IPL Cow Corner IPL Campaigns – Driving category engagement Consistent visibility dri
Slide 15: which has been well received & recognized
which has been well received & recognized.. w w w . b r i t a n n i a . c o . i n KANTAR - Most Chosen FMCG Brands ET BrandEquity Shark Awards’24 #1 in ‘OOH’ & #2 in ‘In-Home’ Brand of the Year 14
Slide 16: Innovation to fuel next phase of growth
Innovation to fuel next phase of growth Fresh launches during the quarter w w w . b r i t a n n i a . c o . i n Pure Magic Stars 5050 Golmaal Butter Garlic In-market launches – Doing consistently well 5050 Golmaal (Base) JimJam Pops Good Day Butter Jeera Robust Innovation Pipeline to cater to Region
Slide 17: Adjacent Businesses doing well
Adjacent Businesses doing well.. Bakery Dairy w w w . b r i t a n n i a . c o . i n Adjacency Dairy Cake – Sequential volume growths during the Cheese – Focus on building a competitive consumer quarter in a challenging consumption scenario Sustainable offering ; Leveraging E-com to drive profitable
Slide 18: Cost Leadership across verticals
Cost Leadership across verticals DIGITAL RENEWABLE Stepped-up Cost Reduction.. ADOPTION ENERGY w w w . b r i t a n n i a . c o . i n 8x DISTANCE FUEL TRAVELLED CONSUMPTION 2024-2025 5x 2020-2021 TRUCK LINE 3x UPSIZING THROUGHPUT 2016-2017 1x 2013-2014 17
Slide 19: Leveraging Manufacturing Superhouse
Leveraging Manufacturing Superhouse.. Journey so far… Footprint aligned Small Factory Own Third Party to demand 16 38 Small Factory centres • 2 lines factory w w w . b r i t a n n i a . c o . i n 54 Factory Locations • Smaller Oven Reduced • Avg factory output distance to ~1800 TPM market Integrated
Slide 20: Ranjangaon Dairy – Farm to Cheese
Ranjangaon Dairy – Farm to Cheese Farmer’s Connect Program Processed Cheese Plant commercialized Program Coverage Milk Collection of 3,300 farmers across 70 BMCs in w w w . b r i t a n n i a . c o . i n 90,000 litres/day 105 villages operation Few Developmental Initiatives Processed Cheese Block Lin
Slide 21: ESG – Building a sustainable profitable business
ESG – Building a sustainable profitable business Recognized as ‘Best 3 Sustainability Initiatives of the Year – 2024’ at the Global CSR & ESG Awards conducted by Brand Honchos. Key initiatives include: • Water Stewardship Program, w w w . b r i t a n n i a . c o . i n • Sustainable Packaging, • Empl
Slide 22: Cost & Profitability
BRITANNIA Cost & Profitability
Slide 23: Commodity costs marginally increase this quarter
w w w . b r i t a n n i a . c o . i n 22 Q1'22 Q1'22 1.0x 1.0x Q2'22 Q2'22 Q3'22 Q3'22 Vs LQ : 0% Vs LY : +7% Vs LY : +34% Vs LQ : +23% Q4'22 Q4'22 Q1'23 Q1'23 Q2'23 Q2'23 Q3'23 Q3'23 Cocoa Flour Q4'23 Q4'23 Q1'24 Q1'24 Q2'24 Q2'24 Q3'24 Q3'24 Q4'24 Q4'24 1.4x Q1'25 1.6x Q1'25 Note: Above values are
Slide 24: Cost & Profitability Front Outlook
COST & PROFITABILITY FRONT OUTLOOK w w w . b r i t a n n i a . c o . i n Stepped-up investments on brands & innovation We are closely monitoring commodity situation & assessing its impact. Actioned measured pricing actions in specific We remain vigilant of the competitive pricing channels to drive m
Slide 25: Financial Result
BRITANNIA Financial Result
Slide 26: Consolidated Sales – Revenue trends
Revenue trends 12-month Growth% -1% 6% 14% 15% 9% 22% 16% 11% 9% 1% 2% 3% 4% 24-month Growth% 25% 18% 20% 25% 8% 29% 32% 28% 18% 23% 19% 14% 13% FY 20-21 (13%) FY 21-22 (8%) FY 21-22 (8%) FY 23-24 (4%) Q1’25 w w w . b r i t a n n i a . c o . i n 4,338 4,370 4,192 Consolidated Sales 4,101 4,130 3,970
Slide 27: Consolidated Operating Profit – trends
Operating Profit trends 12-month Growth% -25% -19% -13% 10% -11% 30% 55% 47% 37% 21% -2% -4% 10% 24-month Growth% 44% 14% 7% 23% -33% 5% 35% 63% 22% 58% 52% 42% 51% FY 20-21 (17.9%) FY 21-22 (14.3%) FY 22-23 (16.3%) FY 23-24 (17.3%) Q1’25 w w w . b r i t a n n i a . c o . i n Consolidated Operating
Slide 28: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q1 24-25 Particulars 12-month 24-month Rs Crs Growth % Growth % Net Sales 4,130 4% 13% w w w . b r i t a n n i a . c o . i n Operating Profit 680 10% 51% Profit Before Tax (BEI*) 706 13% 52% Profit After Tax (BEI*) (Owner’s Share) 524 14% 55% Particulars
Slide 29: Thank You!
BRITANNIA Thank You!
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