Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q4 FY2016-17 Earnings Presentation
27 slides from Britannia Industries's earnings presentation, May 30, 2017
Slide 1: Analyst Meet Q4'16-17 Results Conference Call
Analyst Meet Q4’16-17 Results Conference Call 30th May 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: A good quarter in a challenging market environment
A good Quarter in the face of challenging market environment and sluggish demand scenario post demonetization…
Slide 4: Focus on direct reach and Hindi belt agenda
In this environment, our focus on increasing direct reach coupled with our hindi belt agenda have helped us grow faster than the market
Slide 5: 2X increase in direct reach in the last 3 years
2X increase in the last 3 years Direct Reach - Britannia March'14 March'15 March'16 March'17
Slide 6: Growing well in our focus states
We are growing well in our focus states and it has been a consistent performance NSV Gr% 15 v/s 14 16 v/s 15 17 v/s 16 26% 23% 19% 20% 19% 17% 15% 13% 10% 10% 9% 9% Gujarat MP Rajasthan UP
Slide 7: Staying competitive and plugging portfolio gaps
Also ensuring that we remain extremely competitive in the market place & plug our portfolio gaps Ensuring consumer value Plugging portfolio gaps competitiveness Launch of Goodday Wonderfulls Launch of Tiger Creams – Choco Vanilla New SKU launches – Rs. 10 price point
Slide 8: 8% value growth in base business in Q4
This helped us deliver high single digit (8%) value growth in Q4 in our base business up from 6% in Q3 and we also strengthened our market share in this difficult phase
Slide 9: Adjacent businesses of Bread, Dairy & International under pressure
However, our adjacent businesses of Bread, Dairy & International continued to be under pressure Bread: There has been some recovery after the issue of Potassium Bromate, however growths have not come back to the level we expected International: Continues to be severely impacted on account of deterio
Slide 10: Consolidated NSV grew 6% in Q4
Considering the market environment, we have done reasonably well and grew at 6% in Q4… Consolidated NSV FY 13-14 (11%) FY 14-15 (14%) FY 15-16 (10%) FY 16-17 (8%) 2,430 2,338 2,302 2,186 2,203 2,167 2,162 1,955 2,015 2,032 1,998 1,740 1,772 1,777 1,773 Rs. Crs. 1,540 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Slide 11: Continuing to gain share and maintain market leadership
Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Market share as per Nielsen Oct-14 FY 14-15 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 market leadership.. May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 FY 15-16 [ Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Britannia market share value % May-16 Jun-16 We continue
Slide 12: Material prices continued to firm up with inflation above 10%
Meanwhile, Material prices continued to firm up…with inflation in excess of 10%
Slide 13: Commodity prices continued to be firm
Commodity prices continued to be firm… Rs./kg Rs./kg Flour Sugar Inflation: 34% Inflation: 11% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 RPO Rs./kg Milk Rs./Ltr Inflation: 16% Inflation: 23% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'16 Q
Slide 14: Limited pricing action, accelerated cost efficiency program
Our pricing action has been limited due to market environment, however, our accelerated cost efficiency program has helped mitigate inflation to some extent
Slide 15: Rationalized advertising costs and leveraged fixed costs
We also rationalized advertising costs and focused our spends on ensuring competitiveness in the market place and endeavored to leverage our fixed costs to aid our operating margins to the extent we could
Slide 16: Robust bottom-line performance despite hyper-inflation
Our bottom-line performance has been robust considering the hyper- inflationary environment and the economic situation that we are operating in…
Slide 17: Sustaining the level of profitability achieved
Our endeavor would be to sustain the level of profitability we have achieved… Consolidated FY 13-14 (8.0%) FY 14-15 (9.3%) FY 15-16 (12.9%) FY 16-17 (12.6%) 12.8% 13.6% 12.8% 13.3% 310 12.1% 12.0% 13.1% 297 283 12.0% 288 284 276 261 259 9.8% 9.3% 10.0% 204 8.0% 7.8% 8.3% 7.8% 191 187 Rs. Crs. 7.7% 1
Slide 18: Confident of keeping momentum going
As we progress on our journey, we are confident of keeping our momentum going by working on multiple opportunity areas that we had laid out in last quarter presentation …
Slide 19: Opportunity Areas
Opportunity Areas Opportunities to enhance Revenue Hindi Belt - Weak Distribution long way to Base business markets: We are only go Creams, Premium new ~1/5th of the market BIL – 4.5 Mn formats leader Market Leader – 5.8 Mn Cake & Rusk New adjacent New International New Formats & opportunities marke
Slide 20: Joint Venture with Chipita for filled croissants
In this regard, I am delighted to announce our Joint Venture with Chipita (Greek Company) for manufacturing and selling long life filled croissants and the project is expected to be commercialized by July 2018
Slide 21: Chipita and its partnerships
: include 7Days, €800-m Molto, Fineti and baker Greek Chipicao <) like croissants, _ : cakes, biscuits, C/ jams and : confectionery | THE PARTNERSHIPS Almaraih group group Cama o confectionery 004 brand Feniti in India over past 4 years joint ventures outside of Europe besa soatreareenenan sees crea
Slide 22: Continuing to work on opportunities to drive profitable growth
We shall continue to work on such opportunities to drive profitable growth for our Company as we move forward!
Slide 23: Launch one new category every year
We are actively working on our endeavor to… • Launch one new category every year • Launch differentiated products by leveraging new technologies • Enter new countries/geographies and increase our international play – Our foray into Nepal is just the beginning
Slide 24: Financials
Financials
Slide 25: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q4’16-17 Growth % Net Sales 2,302 6% Profit from Operations 276 6% Profit Before Tax 308 5% Profit After Tax 211 6% Particulars (Consolidated) 2011-12 2012-13 2013-14 2014-15 2015-16 Q1’16-17 Q2’16-17 Q3 16-17 Q4 16-17 2016-17 Pr
Slide 26: Reconciliation - IND AS v/s earlier GAAP
Reconciliation - IND AS v/s earlier GAAP NSV Reconciliation Q1’15-16 Q1’16-17 Q2’15-16 Q2’16-17 Q3’15-16 Q3’16-17 Q4’15-16 Q4’16-17 AS per IND AS 1,998 2,162 2,186 2,430 2,203 2,338 2,167 2,302 AS per earlier GAAP 2,003 2,176 2,191 2,432 2,224 2,337 2,190 2,297 Variance (5) (14) (5) (2) (21) 1 (23)
Slide 27: invrl@britindia.com
invrl@britindia.com
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