Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q2 FY2021-22 Earnings Presentation
21 slides from Britannia Industries's earnings presentation, Nov 9, 2021
Slide 1: Exchange filing cover letter: Analyst Call Presentation
9th November, 2021 1. The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, 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 Call Prese
Slide 2: Analyst Meet / Q2'21-22 Results / Conference Call
Analyst Meet/ Q2’21-22 Results/ Conference Call 9th Nov 2021 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: Economy opening up briskly amidst an inflationary environment
Economy opening up briskly amidst an inflationary environment Covid-19 cases receding with Nomura India Business increasing vaccination Resumption Index (NIBRI) Covid infections / day 450 000 400 000 95.0 0 350 000 85.0 0 Score 300 000 75.0 0 250 000 200 000 65.0 0 150 000 55.0 0 100 000 45.0 0 500
Slide 5: Our Approach to the inflationary environment
Our Approach to the inflationary environment Inflationary pressure Actions 1. Price increase Palm oil Fuel 2. Continue focus on cost reduction 3. Focussed discretionary spends Corrugated Laminate boxes We have initiated price increases to cover inflation over the next 2 quarters. 4
Slide 6: Resilient performance – Both Sequentially & YOY
Resilient performance – Both Sequentially & YOY Consolidated Revenue Operating profit YOY growth 6% YOY growth -19% 6% 18% Sequential Growth 1% 14% 24-month Growth Sequential Growth 24-month Growth Significant Market Share gains in the current fiscal Britannia Largest Competitor 2nd Largest Competit
Slide 7: Consolidated NSV
The 24-month growth for the year stood at 21% with a healthy sequential shift FY 19-20 (4%) FY 20-21 (13%) FY 21-22 (2%) 3,554 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 Q1 Q2 Q3 Q4 Q1 Q2 Growth% 26% 11% 6% 8% -1% 6% 24 month growth%
Slide 8: We continued to focus on our strategic planks
We continued to focus on our strategic planks Striving for profitable growth #1 Innovation #2 Distribution & #3 Cost focus #4 Other businesses #5 Sustainability Marketing Adjacent Core 7
Slide 9: 1. Innovation during the quarter
1. Innovation during the quarter Milk Bikis Classic Britannia 5050 Potazos In Tamil Nadu Extended to Pan India Treat Wafers Stix Marble Cake Pan India – Commercialization of wafers facility in TN 8
Slide 10: 2A. Marketing activities during the quarter
2A. Marketing activities during the quarter Bourbon Milk Bikis Atta – Rest of India Nutri Choice Digestive Jim Jam Pure Magic Chocolush Treat Stix MarieGold BMG My Startup 3.0 Activation Cake 9
Slide 11: 2B. We are taking strides in the Rural India
2B. We are taking strides in the Rural India Upbeat Rural distribution Focus states growth outpacing country average (H1 17-18 vs 20-21) 25K 1.33x 80% Preferred Dealers) 23K No of RPDs (Rural 75% 19k 70% 18k 65% 14k 60% 1.0x 10k 55% 8k 50% 45% 40% 35% 30% Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Se
Slide 12: 2B. … And driving efficiency in distribution
2B. … And driving efficiency in distribution Growth in Channels is back 6,000 5,500 1.09X 1.0X 5,000 0.83X 4,500 4,000 3,500 Q2' 19-20 Q2' 20-21 Q2' 21-22 Building back Direct Distribution after the 2nd wave of Covid-19 23.7 21.5 25.0 21.0 20.8 19.7 18.4 No. of outlets 20.0 15.5 15.0 12.6 10.0 7.3 1
Slide 13: 3. Driving an ecosystem of efficiencies
3. Driving an ecosystem of efficiencies 25030% 6.0x 20030% 4.7x 15030% 10030% 5030% 1.0x 30% 2013-14 2017-18 2021-22 Target Reduce distance to market 12
Slide 14: 4. Other businesses
4. Other businesses Sequential shifts across Distribution system revamp in businesses with out of home ME leading to share gains consumption coming back Consistent increase in market share coupled with TN plant Nepal continued to grow in high commercialization & launch of double digits Treat Stix. H
Slide 15: 5. Sustainability
5. Sustainability 50% women (incl. contract) at facility 8% reduction in sugar by Mar’2024 level by Mar’2024 vs. 18-19. 1,00,000+ beneficiaries to be 6% reduction in sodium by Mar’24 reached through Britannia Nutrition vs. 18-19. Foundation by Mar’2022 2 Targeting nd or 3 rd quartile in the S&P 60%
Slide 16: Q2'22 Financials
Q2’22 Financials On cost & profitability front… 15
Slide 17: Unprecedented inflation in Palm Oil...
Unprecedented inflation in Palm Oil... Flour Rs./kg Sugar Rs./kg Q2 Deflation: 7% Q2 Deflation: 2% 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 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 RPO Rs./kg Milk Rs./Ltr Q2 Inflat
Slide 18: … and inflation in other inputs totaling to 14%
… and inflation in other inputs totaling to 14% Industrial Fuel Freight - Diesel 52.0 Rs./kg 100.0 Rs./ltr 95.0 47.0 90.0 85.0 42.0 80.0 75.0 37.0 70.0 32.0 Q2 Inflation: 35% 65.0 Q2 Inflation: 20% 60.0 27.0 55.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Laminate Rs./kg
Slide 19: Price increases to cover inflation over the next few quarters
Price increases to cover inflation over the next few quarters Higher inflation in the CY than Price increases actioned - Bakery cumulative 6 years 12.0% 1,200 10.0% Absolute Cost Increase YOY 10.0% 1,000 Price Increase % 800 8.0% 7.5% 600 6.0% 4.0% 400 4.0% 200 1.0% 2.0% - 0.0% -200 Q1 Q2 Q3E Q4E -4
Slide 20: Consolidated Operating Profit
Despite the high inflation, Operating Profitability in H1 is comparable to pre-covid levels FY 19-20 (14.5%) FY 20-21 (17.9%) FY 21-22 (14.7%) 19.8% 18.7% 669 18.1% 627 15.1% 14.3% 15.5% 563 14.9% 14.8% 14.5% 508 Consolidated Operating Profit 505 13.1% 447 455 453 406 350 Rs Crs. Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 21: Key Financial Lines – Consolidated (Reported)
Key Financial Lines – Consolidated (Reported) Q2’21-22 YTD 21-22 Particulars YOY 24 month YOY 24 month Rs Crs Rs Crs Growth % Growth % Growth % Growth % Net Sales 3,554 6% 18% 6,906 2% 21% Operating Profit 508 -19% 14% 1,013 -22% 27% Profit Before Tax 523 -22% 5% 1,054 -25% 18% Profit After Tax (Own
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