Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q2 FY2018-19 Earnings Presentation
20 slides from Britannia Industries's earnings presentation, Nov 13, 2018
Slide 1: Analyst Meet Q2'18-19 Results Conference Call
Analyst Meet Q2’18-19 Results Conference Call 13th November 2018 1
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” 3
Slide 4: Consistent Topline & bottomline results
Consistent Topline & bottomline results Net Profit (PAT) – Significant Topline – Consistency in growths improvement in profitability.. 9,829 10.2% 1,004 Rs. Crs Rs. Crs 5,936 4.2% 260 2012-13 2017-18 2012-13 2017-18 Consolidated Statutory results. NSV adjusted for comparison under IND AS. 4
Slide 5: Strategic Planks
Strategic Planks #3 #4 100 Year Distribution activation Momentum #2 #5 New International Categories & Dairy #6 #1 Drive Heightened Cost Profitable Innovation Efficiency growth.. 5 Team – Nimble, Home grown, Stable, Britannia for Britannians
Slide 6: #1 Heightened Innovation..
#1 Heightened Innovation.. Pure Magic Chocolush Goodday Cashew Tiger Choco Cake - Veg Muffils Almond Cookies New Launches 50-50 Bourbon Renovation More Innovation in the pipeline in H2.. 6
Slide 7: #2 New Categories.. Wafers launched
#2 New Categories.. Wafers launched New Category – Wafers launched.. Croissant – Project underway On the Go Anytime snack Life in the fast lane Youthful Hunger Buster Soft Bread Delicious Cream European Origin 2 delicious flavours Wholesome! Other Macro Snacking opportunities Cake Innovation through
Slide 8: #3 Massive multimedia campaign to celebrate 100 years
#3. Massive multimedia campaign to bring alive the new identity and celebrate 100 years.. Engagement led Radio Social Media Campaign tapping Campaign - 16 cities present & past endorsers Biggest ever OOH campaign across FMCG - 760 sites, 41 cities 8 wks TV Campaign, Asia Cup Sponsorship Powerful Dig
Slide 9: #4 Distribution Momentum continues..
#4. Distribution Momentum continues.. Rural distribution increase and growing Direct Reach – 2.7X increase in double digit… 19.9 16,500 18.4 (Rural Preferred 14,400 No of RPDs 15.5 10,000 Dealers) 6,600 8,000 12.6 10.0 7.3 Mar'15 Mar'16 Mar'17 Mar'18 Sep'18 March'14 March'15 March'16 March'17 March'
Slide 10: #5 International Business & Dairy
#5 International Business & Dairy International Dairy Double Digit growths in International Double digit volume growth in Cheese business.. Milk Collection pilot scaled up New Launches in Q3 New Geography – Nepal in Q4 & actively 1. Milk Shakes in Tetra packs, 2. Dairy whitener Jar working on the ne
Slide 11: #6 Cost efficiency program..
#6. Cost efficiency program.. Driving Cost efficiency across the chain.. With a culture across.. 4.5 4.5 3.1 2.2 1.8 1.0 13-14 14-15 15-16 16-17 17-18 18-19 Target Indexed to year 13-14 11
Slide 12: We also commercialized our Ranjangaon Biscuit facility..
We also commercialized our Ranjangaon Biscuit facility.. 12
Slide 13: Our Strategy is to be a Global Total Foods Company
Our Strategy is to be a “Global Total Foods Company” 13
Slide 14: Q2 '18-19 results
Q2 ‘18-19 results 14
Slide 15: Strong top-line & volume growth on the back of positive momentum
Strong top-line & volume growth on the back of positive momentum in the market, Consolidated NSV as per Statutory results* FY 17-18 (10%) YTD 18-19 FY 14-15 (15%) FY 15-16 (10%) FY 16-17 (8%) (13%) 2,855 2,537 2,558 2,510 2,527 2,361 Rs. Crs. 2,265 2,231 2,225 2,128 2,144 2,112 2,106 1,964 1,987 1,9
Slide 16: Commodity.. Overall Q2 inflation @ ~4%
Commodity.. Overall Q2 inflation @ ~4% Rs./kg Rs./kg Flour Sugar Q2 inflation: 7% Q2 Deflation: 17% 12-13 13-14 14-15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1 '18 Q2 18 Q3'18 Q4'18 Q1'19 Q2'19 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 Q3'18 Q4'18 Q1'19 Q2
Slide 17: Our bottom line performance has been consistent
Our bottom line performance has been consistent due to:- accelerated cost efficiency program leveraged fixed costs 17
Slide 18: Consolidated Operating Profit
Consistent Profitability H1 18-19 FY 14-15 (9.3%) FY 15-16 (13.2%) FY 16-17 (12.9%) FY 17-18 (13.8%) (14.3%) 14.3% 14.6% 14.1% 14.0% 13.6% 417 13.1% 13.3% 14.0% 13.2% 13.7% 12.5% Consolidated Operating Profit 12.3% 12.4% 366 355 354 13.4% 344 10.0% 297 310 295 9.8% 9.3% 283 288 284 275 Rs. Crs. 261
Slide 19: Financials
Financials 19
Slide 20: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q2’18-19 Growth % Net Sales 2,855 13% Profit from Operations 417 21% Profit Before Tax 459 17% Profit After Tax 303 16% Particulars (Consolidated) 12-13 13-14 14-15 15-16 16-17 17-18 18-19 Q1 18-19 Q2 Profit from Operations% 5.7%
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