Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q3 FY2023-24 Earnings Presentation
24 slides from Britannia Industries's earnings presentation, Feb 7, 2024
Slide 1: Analyst Meet/ Q3'23-24 Results/ Conference Call
Analyst Meet/ Q3’23-24 Results/ Conference Call 7th February 2024
Slide 2: 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 3: Macro Environment
Macro Environment India steering well amidst Global Slowdown Private Consumption Spends remain subdued Real GDP PFCE GFCF India Real GDP Growth YoY 11.4% w w w . b r i t a n n i a . c o . i n 10.3% YoY Growth % 7.2% 7.5% 7.3% 7.8% 7.2% 7.6% 7.3% 6.8% 6.5% 4.4% FY 17-18 FY 18-19 FY 22-23 AMJ'23 JAS'2
Slide 4: Q3'24 Performance Update
BRITANNIA Q3’24 Performance Update
Slide 5: Performance Scorecard
Performance Scorecard Revenue from Operations Revenue from Operations Revenue from Operations Q3’24 12 months 24 months w w w . b r i t a n n i a . c o . i n Growth Growth Rs 4,192 Crore +2% +19% Operating Profit % Operating Profit Operating Profit Q3’24 12 months 24 months Growth Growth +17.7% -2%
Slide 6: Biscuit Market Share % – Rebounding post challenges in H1'24
6 w w w . b r i t a n n i a . c o . i n Biscuit Market Share % Source: Nielsen 10 15 20 25 30 2012-13 2013-14 2014-15 Britannia 2015-16 2016-17 2017-18 2018-19 Largest Competitor 2019-20 2020-21 2021-22 2022-23 YTD'24 2nd Largest Competitor EXIT 8 10 12 14 16 18 20 Market Share – Rebounding post cha
Slide 7: 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 8: Driving efficiencies in Distribution
Driving efficiencies in Distribution Expanding Direct Reach Strengthening Rural Distribution 26.8 27.6 28k 28k 29k 26.4 No of Outlets in Lakhs 26k (Rural Distributors) 24.9 23.7 23k No of RPDs 21.0 18k 19k w w w . b r i t a n n i a . c o . i n 19.7 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Dec'22 Dec'23 Ma
Slide 9: Judicious Pricing Actions & Promotions to stay competitive
Judicious Pricing Actions & Promotions to stay competitive.. Strategic Pricing Actions in key SKUs & Markets Tactical Consumer Promotions to drive consumption w w w . b r i t a n n i a . c o . i n 9
Slide 10: Sustained marketing support to drive consumer engagement
Sustained marketing support to drive consumer engagement.. w w w . b r i t a n n i a . c o . i n 50-50 4th Umpire – On Pack Portfolio Activation Milk Bikis - TVC Nutri Choice - TVC Superior Recipe & Value Proposition Visibility Drive Rs 20 Cashback Promo on Pack Treat Creams – Product Restage Rusk –
Slide 11: 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 Marketing team of the year – India Marketing Awards 2023 Digital Brand of the year – ET DigiPlus’23 Marketer of the Year – Clutter Cutters Awards 2023 Brand & Marketing team of the year – ET Brand Equity’23 11
Slide 12: Innovation to fuel next phase of growth
Innovation to fuel next phase of growth Consistent performance of In-market Innovation w w w . b r i t a n n i a . c o . i n Fresh launches – New Products / Categories 12 Revenue contribution of these products at Rs 200+ Crs (Annualized)
Slide 13: Adjacent Businesses remains on strong footing
Adjacent Businesses remains on strong footing Bakery Dairy Dairy w w w . b r i t a n n i a . c o . i n Adjacency Cake – Base format (Bar Cake) back to growths Cheese – Differentiated formats continue to gain Rusk – Volume recovery led by product Sustainable traction (~10% contribution to business);
Slide 14: Cost efficiencies across verticals
Cost efficiencies across verticals.. MARKET RENEWABLE Stepped-up Cost Reduction.. DAMAGES ENERGY w w w . b r i t a n n i a . c o . i n 7x DISTANCE FUEL TRAVELLED CONSUMPTION 2023-2024 5x 2020-2021 TRUCK LINE 3x UTILIZATION THROUGHPUT 2016-2017 1x 2013-2014 14
Slide 15: Scale & Technology aids gain competitive edge
Scale & Technology aids gain competitive edge.. Oven - 21C Smart Factory Footprint Fuel Agnostic aligned Product Performance Management Small Factory to demand Small Factory centres Cost Efficient • 2 lines factory Predictive Maintenance • Smaller Oven Reduced w w w . b r i t a n n i a . c o . i n •
Slide 16: ESG – Building a sustainable profitable business
ESG – Building a sustainable profitable business ESG Construct - Top Quartile in FMCG India in engagement Planning a marketing campaign “Har score Pocket Dustbin” which shall be on 4 strategic pillars preventing littering in public places o Growth (Economic) 2.3 Lac beneficiaries through BNF Vs 1.98
Slide 17: Cost & Profitability
BRITANNIA Cost & Profitability
Slide 18: Overall commodity costs remained soft this quarter
Overall commodity costs remained soft this quarter.. Flour Sugar Palm Oil Vs LQ : -1% Vs LQ : +7% Vs LQ : -2% 1.4x 1.2x Vs LY : +10% Vs LY : +8% 1.0x Vs LY : -18% w w w . b r i t a n n i a . c o . i n 0.8x 1.0x 1.0x Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q1'22 Q2'22 Q3'22
Slide 19: Cost & Profitability Front Outlook
COST & PROFITABILITY FRONT OUTLOOK w w w . b r i t a n n i a . c o . i n Continued to invest behind brands & innovation We are closely monitoring stock/price situation of commodities Actioned measured pricing corrections to remain We remain vigilant of the competitive pricing competitive actions Our
Slide 20: Financial Result
BRITANNIA Financial Result
Slide 21: Consolidated Revenue from Operations
Healthy topline growth over 24-month period 12-month growth% 26% 11% 6% 8% -1% 6% 14% 15% 9% 22% 16% 11% 9% 1% 2% 24-month growth% 34% 17% 10% 10% 25% 18% 20% 25% 8% 29% 32% 28% 18% 23% 19% Consolidated Revenue from Operations FY 19-20 (4%) FY 20-21 (13%) FY 21-22 (8%) FY 22-23 (15%) YTD Dec (4%) w
Slide 22: Consolidated Operating Profit
Healthy Operating profits levels 12-month growth% 91% 40% 24% 12% -25% -19% -13% 10% -11% 30% 55% 47% 37% 21% -2% 24-month growth% 89% 50% 38% 16% 44% 14% 7% 23% -33% 5% 35% 63% 22% 58% 52% FY 19-20 (14.5%) FY 20-21 (17.9%) FY 21-22 (14.3%) FY 22-23 (16.3%) YTD Dec (17.3%) w w w . b r i t a n n i a
Slide 23: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q3 23-24 Particulars Rs Crs 12-month Growth % 24-month Growth % Net Sales 4,192 2% 19% w w w . b r i t a n n i a . c o . i n Operating Profit 743 -2% 52% Profit Before Tax (PBT) 758 -34%* 50% Profit After Tax (Owner’s share) (PAT) 556 -40%* 50% Particula
Slide 24: Thank You!
BRITANNIA Thank You!
Britannia Industries — Q3 FY2023-24 Earnings Presentation on 6ix