Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q2 FY2024-25 Earnings Presentation
27 slides from Britannia Industries's earnings presentation, Nov 12, 2024
Slide 1: Exchange filing cover letter: Analysts Call Presentation
12th November, 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 Scri
Slide 2: Analyst Meet / Q2'24-25 Results / Conference Call
Analyst Meet/ Q2’24-25 Results/ Conference Call 12th Nov 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: High inflation leading to a tepid demand scenario
High inflation leading to a tepid demand scenario… FMCG Value Growth % in Rural & Urban CPI (General) & CFPI Inflation in % w w w . b r i t a n n i a . c o . i n 14.3% 11.5 9.9 9.5 9.4 9.2 11.1% 8.7 8.3 8.7 8.5 8.7 8.7 9.1% 7.4 6.8 6.6 6.6 6.9% 7.4% 5.6 5.7 5.4 5.7 5.5 6.8% 6.7% 6.7% 5.0 4.9 5.1 5.1
Slide 5: Slowdown in Urban led by Metros
Slowdown in Urban led by Metros FMCG Market Growths in % Contribution by Market – to FMCG growths 14.8% 13.9% w w w . b r i t a n n i a . c o . i n 12.3% 9.1% 7.7% 6.7% 5.7% 2.0% AMJ 23 JAS 23 OND 23 JFM 24 AMJ 24 JAS 24 Contribution to Sale Contribution to Slow Down India India - Metro India - Non
Slide 6: Low income growth for >50% of Urban working population
Low income growth for >50% of Urban working population… CPI Basket Weight – Urban vs Rural Urban workforce demography 4.3 3.5 3.5 1.4 5.6 2.0 7.6 +0.2% 9.7 Personal care and effects 6.8 4.8 % of Non-Salaried to Urban Workforce 3.8 Education w w w . b r i t a n n i a . c o . i n 3.9 7.9 5.6 Recreatio
Slide 7: Performance Update
BRITANNIA Performance Update
Slide 8: Performance Scorecard – Q2'25
Performance Scorecard – Q2’25 Revenue from Operations Q2’25 12 Months QoQ 24 Months Growth Growth Growth w w w . b r i t a n n i a . c o . i n Rs 4,566 Crore +4.5% +10.6% +5.3% Profit after Tax 12 Months QoQ 24 Months Q2’25 Growth Growth Growth 11.6% -9.6% +5.1% +7.7% 7 Source: Company Financials –
Slide 9: Market Share - Biscuits
Market Share - Biscuits 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 H1 24-25 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Distribution expansion
Slide 10: 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 9
Slide 11: Driving efficiencies in Distribution
Driving efficiencies in Distribution Expanding Direct Reach No of Outlets in Lakhs 27.9 28.5 26.8 24.9 23.7 21.0 19.7 w w w . b r i t a n n i a . c o . i n Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Sep'24 Uptick in Rural Distribution Focus states outperform 30k 30k 28k (Rural Distributors) 1.9x Reve
Slide 12: RTM 2.0 – Update
RTM 2.0 – Update Rewriting Route-to-Market 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 ❑ Pilots in Q2’25 covering 25 cities, 44 distributors & more Increase feet than 50,000 outlets showing encouraging res
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 Marie Gold 50-50 Treat Cream Milk Bikis Bourbon Brands on Air – Driving Awareness & Generating Demand Good Day – Digital Campaign Little Hearts – Brand refresh 50
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 Milk Rusk TVC Winkin Cow – AR led Game Promo “Croissant” Pronunciation Cake “Fudge It” Moments Leveraging Social Media to buil
Slide 15: Innovation – New launches
Innovation – New launches Fresh launches to strengthen Adjacent categories w w w . b r i t a n n i a . c o . i n Milk Bikis Wafer Rolls Layer Cake – Jam & Cream In-market launches Distribution-led scale Building on the up across regions Golmaal franchisee Tiger Coconut Golmaal Butter 14 Innovation P
Slide 16: Adjacent Businesses doing well
Adjacent Businesses doing well.. Bakery Dairy Adjacency Sustainable w w w . b r i t a n n i a . c o . i n Growth & Cake – Growths on the back of Innovations Cheese – Leveraging in-house capabilities to stay profitability and new variants competitive and augment growth Rusk – Healthy volume and value
Slide 17: Digital adoption for enhanced efficiency
Digital adoption for enhanced efficiency Marketing Supply Chain ❑ First Party Data for Direct Marketing ❑ Integrated Transport Management System ❑ Centre of Excellence for E-Commerce ❑ Robotics for process automation w w w . b r i t a n n i a . c o . i n Sales Procurement ❑ Analytics for Assortment
Slide 18: Cost Leadership across verticals
Cost Leadership across verticals DIGITAL RENEWABLE Enhanced cost savings over the years.. ADOPTION ENERGY w w w . b r i t a n n i a . c o . i n 8x NETWORK GREEN FUEL OPTIMIZATION 2024-2025 5x 2020-2021 PACKAGING LINE 3x RE-ENGINEERING THROUGHPUT 2016-2017 1x 2013-2014 17
Slide 19: ESG – Building a sustainable, profitable business
ESG – Building a sustainable, profitable business Ongoing Initiatives Software platform for digitized Launched the e-learning sustainability data collection module to raise sustainability w w w . b r i t a n n i a . c o . i n launched awareness among employees ESG Reporting Recognition 4th Sustainab
Slide 20: Cost & Profitability
BRITANNIA Cost & Profitability
Slide 21: Commodity cost… inflation coming back
Commodity cost… inflation coming back Flour Palm Oil Sugar Vs Q1’25 : +5% 1.5x Vs Q1’25 : +2% Vs Q1’25 : +1% Vs Q2’24 : +7% 1.0x Vs Q2’24 : +3% Vs Q2’24 : +9% 1.2x Q2 lower than Market Price by 6% 0.8x w w w . b r i t a n n i a . c o . i n 1.0x Q2 lower than Market 1.0x Price by 12% Q1'25 Q1'22 Q2'2
Slide 22: Cost & Profitability Front Outlook
COST & PROFITABILITY FRONT OUTLOOK w w w . b r i t a n n i a . c o . i n Initiated focused pricing actions in specific We are closely monitoring commodity situation & channels and brand to counter inflation assessing its impact. Driving Cost efficiency & Value engineering We remain vigilant of the c
Slide 23: Financial Result
BRITANNIA Financial Result
Slide 24: Revenue trends – Consolidated Sales
Revenue trends 12-month Growth% -1% 6% 14% 15% 9% 22% 16% 11% 9% 1% 2% 3% 4% 4% 24-month Growth% 25% 18% 20% 25% 8% 29% 32% 28% 18% 23% 19% 14% 13% 5% FY 20-21 (13%) FY 21-22 (8%) FY 22-23 (8%) FY 23-24 (4%) H1’25 (4%) w w w . b r i t a n n i a . c o . i n 4,566 4,370 Consolidated Sales 4,338 4,192
Slide 25: Operating Profit trends
Operating Profit trends 12-month Growth% -25% -19% -13% 10% -11% 30% 55% 47% 37% 21% -2% -4% 10% -12% 24-month Growth% 44% 14% 7% 23% -33% 5% 35% 63% 22% 58% 52% 42% 51% 7% FY 20-21 (17.9%) FY 21-22 (14.3%) FY 22-23 (16.3%) FY 23-24 (17.3%) H1’25 (16.0%) w w w . b r i t a n n i a . c o . i n Consoli
Slide 26: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q2 24-25 Particulars Rs Crs Vs Q1’25 Vs Q2’24 Net Sales 4,566 10.6% 4.5% w w w . b r i t a n n i a . c o . i n Operating Profit 707 4.1% -11.7% Profit Before Tax 715 5.0% -10.5% Profit After Tax (Owner’s Share) 531 5.1% -9.6% Particulars 14-15 15-16 16-1
Slide 27: Thank You!
BRITANNIA Thank You!
Britannia Industries — Q2 FY2024-25 Earnings Presentation on 6ix