Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q3 FY2021-22 Earnings Presentation
20 slides from Britannia Industries's earnings presentation, Jan 31, 2022
Slide 1: Analyst Call Presentation covering letter to exchanges
31st January, 2022 1. The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Fort, Mumbai - 400 001 2. The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 Sub: Analyst Ca
Slide 2: Analyst Meet / Q3'21-22 Results / Conference Call
Analyst Meet/ Q3’21-22 Results/ Conference Call 31 January 2022 1
Slide 3: Disclaimer / Safe Harbor Statement
Disclaimer / Safe Harbor Statement 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 v
Slide 4: Biscuit Market Share
High Double-digit growth, Market Share gains amidst an inflationary environment… Consolidated Revenue Operating profit YOY growth 14% 20% 24-month YOY growth -13% 7% 24-month Growth Growth Market Share gains in the current fiscal Britannia Largest Competitor 2nd Largest Competitor 34 .0 20 .0 Biscui
Slide 5: We continued to focus on our strategic planks
We continued to focus on our strategic planks Striving for profitable growth #1 Distribution & #2 Cost Focus #3 Brand Building #4 Adjacent Business #5 Sustainability Marketing People Adjacent Growth Core Governance Resources 4
Slide 6: 1A. Marketing activities during the quarter
1A. Marketing activities during the quarter 50-50 Potazos National scale- Milk Bikis Atta – Rest of India Layer cake – Thematic on Air up (Thematic) NC Snacker Cracker Tiger Krunch Thematic Pure Magic Chocolush MarieGold – My startup 3.0 Key Promotions Christmas Cake NC Oats MBK Atta Wafers (Channel
Slide 7: 1B. Driving efficiency in distribution
1B. Driving efficiency in distribution Upbeat Rural distribution Direct reach increasing steadily post Covid 25.0 23.7 No. of outlets (lakhs) 21.5 21.9 26K 21.0 No of RPDs (Rural Preferred 23K 19.7 20.0 18.4 18k 19k 15.5 14k Dealers) 12.6 15.0 10k 8k 10.0 10.0 7.3 5.0 Mar'16 Mar'17 Mar'18 Mar'19 Mar
Slide 8: 2. Cost efficiencies across functions
2. Cost efficiencies across functions Manufacturing Material 710 7.4x 1,200 5.0x 1,000 610 510 800 410 600 310 210 1.0x 400 1.0x 200 110 10 - 2013-14 2021-22 E 2013-14 2021-22 E Distribution Total Cost Efficiency 5.6x 400 3.9x 3,000 350 2,500 300 2,000 250 1.0x 1,500 200 1.0x 1,000 150 500 100 - 201
Slide 9: 3. Bringing exciting goodness in Good Day
3. Bringing exciting goodness in Good Day Every pack carries multiple smile Each SKU carries 4 different smiles Innovative Print Campaign using designs on the pack AR technology Concept of ‘multiple smiles in a pack’- first time ever in category AR technology helped ‘build customization to each cons
Slide 10: 4. Adjacent Businesses on strong footing..
4. Adjacent Businesses on strong footing.. Healthy growth with consistent margin delivery in Bread and Rusk 2x growth in Dairy Drinks this year Local operations commenced in Uganda and Egypt Strong growth in Croissant in the present markets Milk collection increased from 35,000 to 60,000 litres per
Slide 11: 5. Sustainability – Programs and journey so far..
5. Sustainability – Programs and journey so far.. Pillar Programs Status vs Target 1 50% women (incl. contract) at facility level by Mar’2024 42% as on date People 2 1,00,000+ beneficiaries to be reached through Britannia 1,15,000 beneficiaries as on date Nutrition Foundation by Mar’2022 3 60% renew
Slide 12: Q3'22 Financials
a BRITANNIA Q3'22 Financials Ns »
Slide 13: Consolidated NSV
Healthy growth across Businesses and Channels helps deliver 14% growth YoY… FY 19-20 (4%) FY 20-21 (13%) FY 21-22 (6%) 3,554 3,531 3,384 3,354 3,352 3,106 3,038 3,023 2,936 2,808 2,677 Consolidated NSV Rs Crs. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Growth% 26% 11% 6% 8% -1% 6% 14% 24
Slide 14: Global inflationary scenario persists…
Global inflationary scenario persists… 13
Slide 15: Global Commodity Indices
Global Commodity Indices Black Sea Wheat Prices ($/MT) Sugar (Cents/Pound) Jan’21 Jan’22 Jan’21 Jan’22 Crude Prices ($/Barrel) Palm Oil (Myr/Ringgit) WTI Brent Jan’21 Jan’22 Jan’21 Jan’22 14
Slide 16: Our commodities saw QoQ inflation of ~4% & YoY inflation of ~20%
Our commodities saw QoQ inflation of ~4% & YoY inflation of ~20% during the quarter… Flour Sugar Rs./kg Rs./kg 6% QoQ 5% QoQ 2% YoY 4% YoY Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21
Slide 17: Inflation in other commodities added to margin pressure..
Inflation in other commodities added to margin pressure.. Industrial Fuel Freight - Diesel 18% QoQ (Rates/kg.) 0% QoQ (Rates/kg.) 57% YoY 24% YoY Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Laminates Corrugated Box 1% QoQ (Rates/kg.) -3% QoQ (Rates/kg.) 21% Yo
Slide 18: Our response to inflationary pressure
Our response to inflationary pressure Value creation for Consumers Controlled Price increases Cost Efficiency Discretionary Program spends Focused A&P Accelerated program Judicious price increase Controlled OH IT transformation Ahead of competition Leveraged fixed costs 17
Slide 19: Price increase vs Material inflation...
Price increase vs Material inflation... Material Inflation % (YoY) Price Increase % % growth v/s respective PY quarters % growth v/s respective PY quarters On Cost base On Revenue base 10% 8% 20% 14% 4% 4% 1% Q1 Q2 Q3 Q1 Q2 Q3 Q4E Price increases actioned along with cost efficiencies have addresse
Slide 20: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q3’21-22 YTD 21-22 Particulars YOY 24 month YOY 24 month Rs Crs Rs Crs Growth % Growth % Growth % Growth % Net Sales 3,531 14% 20% 10,436 6% 21% Operating Profit 489 -13% 7% 1,502 -19% 20% Profit Before Tax 505 -18% 2% 1,559 -23% 12% Profit After Tax (Ow
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