Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q1 FY2017-18 Earnings Presentation
23 slides from Britannia Industries's earnings presentation, Aug 9, 2017
Slide 1: Analyst Meet Q1'17-18 Results Conference Call
Analyst Meet Q1’17-18 Results Conference Call 9th Aug 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 the face of challenging market environment
A good Quarter in the face of challenging market environment & destocking in trade due to GST..
Slide 4: Despite adversity we continue to deliver consistent results
Inspite of adversity in the environment in the last 3 quarters we continue to deliver consistent results.. This is in line with our guiding principle of “Its not what we do once in a while that shapes our business, its what we do consistently”
Slide 5: Our key strategic focus areas
Our key strategic focus areas: 1 2 3 Drive Premiumisation Increase distribution Attain Cost leadership through innovation footprint, grow rural through efficiencies & and remain extremely and win share from wastage reduction competitive local players 4 5 6 Enter new product categories to be a Focus
Slide 6: Drive Premiumisation through Innovation & being competitive
1. Drive Premiumisation through Innovation & being competitive Ensuring consumer value Delightful Innovation competitiveness Goodday Wonderfulls Treat Rennovation
Slide 7: Increase distribution footprint, grow rural and win share from local players
2. Increase distribution footprint, grow rural and win share from local players Direct Reach – 2.2X in last three years Rural continues to grow in double digit Mar'15 Mar'16 Mar'17 Jun'17 March'14 March'15 March'16 March'17 Jun'17 Gain share from local players Target local / GST has regional players
Slide 8: Attain Cost leadership
3. Attain Cost leadership Efficiency improvement – Reduce distance to market & use of new manufacturing technology (Maharashtra Food park) Wastage reduction- Reduce market returns write offs & Trade loads Cost efficiency program 60% higher than PY – Q1 in line with target
Slide 9: Focus on People Development
4. Focus on People Development Young Managers Britannia for People- friendly for a Young Britannians policies India Young Managers at 80% of the People friendly the forefront of current senior policies derived driving our leadership through understanding team from dialogue with about within employee
Slide 10: International foray
5. International foray Entry into Nepal is just Actively working on the the beginning next geography
Slide 11: Total Foods Company
6. Total Foods Company Chipita Joint venture Dairy project under finalisation Other Adjacent Caegories Cake & Rusk Other adjacent Innovations & opportunities new formats
Slide 12: Q1 17-18 Results
Q1 17-18 Results
Slide 13: Delivered high single digit (7.4%) value growth in Q1
Delivered high single digit (7.4%) value growth in Q1 on a standalone basis.
Slide 14: Adjacent businesses performance
Adjacent businesses performance.. Bread: Growths are back and is in double digits. International: Continues to be severely impacted on account of deteriorating geopolitical situation and currency fluctuations in geographies like Middle East and Africa Dairy: Our focus is on driving products with hig
Slide 15: Consolidated NSV grew 6.4% in Q1
Considering the market environment we have done reasonably well and grew at 6.4% in Q1 Consolidated NSV FY 13-14 (11%) FY 14-15 (14%) FY 15-16 (10%) FY 16-17 (8%) 2,430 2,338 2,303 2,301 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
Slide 16: We also grew our market share in this difficult phase
We also grew our market share in this difficult phase
Slide 17: Commodity inflation continues in double digits
However inflation in commodities (except flour) continues to be in double digits.
Slide 18: Commodity prices continue rising except flour
Except flour other commodity prices continue rising. Inflation in Q1 – 6% vs PY Rs./kg Rs./kg Flour Sugar Q1Inflation: 3% Q1 Inflation: 17% RPO Rs./kg Milk Rs./Ltr Q1 Inflation: 11% Q1 Inflation: 24% 12-1313-1414-15Q1'16Q2'16Q3'16Q4'16Q1'17Q2'17Q3'17Q4'17Q1'18
Slide 19: Our bottom line performance has been consistent
Our bottom line performance has been consistent due to:- Limited pricing action accelerated cost efficiency program leveraged fixed costs
Slide 20: Consolidated Operating Profit
As a result, in this challenging environment, we were able to sequentially improve our profitability FY 13-14 (8.0%) FY 14-15 (9.3%) FY 15-16 (12.9%) FY 16-17 (12.5%) 13.6% 12.8% 12.8% 12.8% 13.3% 310 12.1% 297 12.0% 13.1% 283 12.0% 288 284 275 295 Consolidated Operating Profit 261 259 9.8% 9.3% 10.
Slide 21: Financials
Financials
Slide 22: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q1’17-18 Growth % Net Sales 2,301 6% Profit from Operations 295 2% Profit Before Tax 329 1% Profit After Tax 216 -1% Particulars Q1’17- 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 (Consolidated) 18 Profit from Operations% 4.6
Slide 23: invrl@britindia.com
invrl@britindia.com
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