Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q2 2017-18 Earnings Presentation
28 slides from Britannia Industries's earnings presentation, Nov 15, 2017
Slide 1: Analyst Meet Q2'17-18 Results Conference Call
Analyst Meet Q2’17-18 Results Conference Call 15th Nov 2017
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: Despite disruptions, we maintained our momentum
“Despite some disruptions in the past few years, we have maintained our momentum & delivered consistent & sustained business results”
Slide 4: Smooth GST implementation was critical for long term success
“In this year, a smooth GST implementation was critical for our long term success”
Slide 5: GST migration
GST migration.. GST Software Training Business Registration migration • ~3800 • SAP • Employees • Whole sale customers • Secondary • Vendors channel • ~ 2600 sales • Customers impacted vendors system (now stabilized) • Distributor Issue in Kerala (solved for)
Slide 6: Focus on basic execution continued as the underlying theme
However “Focus on basic execution” continued as the underlying theme for all of us at Britannia
Slide 7: Our execution focus areas
Our execution focus areas.. Increase Drive Distribution Premiumisation footprint Attain Cost leadership
Slide 8: Delightful Innovation & activation of Brands
Delightful Innovation & activation of Brands.. Delightful Innovation Activation of brands Goodday Wonderfulls Digital for Goodday “Indian Guard” World Smiles Day Amplification Treat Rennovation MilkBikis Activation TVC Visibility Digital
Slide 9: Increased distribution footprint, growths in rural and weak states
Increased distribution footprint, growths in rural and weak states.. Direct Reach – 2.3X in last three years Rural continues to grow in double digit Mar'15 Mar'16 Mar'17 Jun'17 Sep'17 March'14 March'15 March'16 March'17 Sept'17 Weak states continue to grow faster.. 27.2 26.3 N 22.8 S 18.6 19.6 V 15.
Slide 10: Cost leadership
Cost leadership Wastage reduction Efficiency improvement – Market returns – 30% Distance to market 33% Write offs – 80% reduction Trade loads - ~30% (Reduction) Cost efficiency program 60% higher than PY
Slide 11: Time to take the leap forward on strategic initiatives
Now is the time to take the leap forward on “strategic initiatives”
Slide 12: Key strategic initiatives
Key strategic initiatives Enter new Enter 1 new product Create Business geography every categories to units year become a “Total Foods Company” People being at the core
Slide 13: You build people, and people build the business
We firmly believe “You don’t build a Business You build people And then People build the business”
Slide 14: Separate & Focused Business units or Profit centers
As businesses expand & we enter new categories, it is critical to have Separate & Focused Business units or Profit centers People Strategic Head Agenda initiative New category - Vinay Britannia for Croissant 1 Subramanyam Britannians New Geography - Anil Sharma Nepal Focus on adjacent 2 Talent from
Slide 15: Our dream of being a Total Foods Company
Our simple dream of being a “Total Foods Company” is Powerful Croissant Dairy Macro Snacks Drinkables Cake & Rusk Innovation through new formats Cheese formats.
Slide 16: Investing in capacities for the future
We are also investing in capacities for the future Ranjangaon, Maharashtra Guwahati, Assam Integrated Food Park Q1’18 To service local region (Also a milk belt and ideal location Q1’18 for Dairy)
Slide 17: Investing in capacities for International Business
Investing in capacities for International Business Mundra, Gujarat Nepal To service International markets Local operation – Q4’18 Q1’18
Slide 18: Q2 17-18 Results
BRITANNIA) Q2 17-18 Results
Slide 19: High single digit value growth in Q2 on standalone basis
Delivered high single digit (8%*) value growth in Q2 on a standalone basis. Comparable
Slide 20: Adjacent businesses performance
Adjacent businesses performance.. Bread: Growths are International: Dairy: Our focus is in double digits and Positive Growths in Q2, on driving products with improved however continues to with high profitability profitability. be impacted by (double digit growth ) deteriorating and reduce less geopo
Slide 21: Consolidated growth of 7.4% in Q2
Resulting in a consolidated growth of.. 7.4% in Q2 Consolidated NSV as per Statutory results* FY 14-15 (15%) FY 15-16 (10%) FY 16-17 (8%) H1 17-18 (7%) 2,537 2,361 2,265 2,128 2,144 2,231 2,225 2,112 2,106 1,912 1,964 1,987 1,941 1,732 Rs. Crs. Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2
Slide 22: Inflation in commodities is stable
In the meantime, inflation in commodities is stable.
Slide 23: Commodity prices stable except sugar and milk
Except Sugar & Milk prices other commodity prices are stable. Overall inflation in Q2 – 1% Rs./kg Rs./kg Flour Sugar Q2 deflation: 6% Q2 Inflation: 7% 12-13 13-14 14-15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18Q2 18 RPO Rs./kg Milk Rs./Ltr Q2 Deflation : 3% Q2 Inflation: 14%
Slide 24: Bottom line performance consistent due to cost efficiency
Our bottom line performance has been consistent due to:- accelerated cost efficiency program leveraged fixed costs
Slide 25: Consolidated Operating Profit
As a result, we were able to improve profitability FY 15-16 (13.2%) FY 16-17 (12.9%) H1 17-18 FY 14-15 (9.3%) (13.4%) 13.7% 13.6% 14.0% 13.2% 13.1% 12.3% 13.3% 344 310 12.5% 12.4% Consolidated Operating Profit 13.4% 297 283 288 284 295 275 9.8% 9.3% 10.0% 261 259 Rs. Crs. 191 187 204 7.8% 138 Q Q Q
Slide 26: Financials
BRITANNIA) Financials
Slide 27: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q2’17-18 Growth % Net Sales 2,537 7% Profit from Operations 344 11% Profit Before Tax 394 13% Profit After Tax 261 12% Particulars H1’17- 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 (Consolidated) 18 Profit from Operations% 4
Slide 28: invrl@britindia.com
invrl@britindia.com
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