Analyst Meet 13 th February 2013

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Thomasina Sherman
5 years ago
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1 Analyst Meet 13 th February 2013

2 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. Potential risks and uncertainties include factors such as general economic conditions, commodities and currency fluctuations, competitive product and pricing pressures, industrial relations and regulatory developments.

3 Quick Recap Food is a USD 240 billion opportunity Branded food growing faster than overall food and non-food Bakery, other than biscuits, is a growth opportunity for Britannia Growth driven by rising income, quality consciousness and convenience seeking Dairy branded but generic, growing fast and providing scope for differentiation Biscuit is the largest category in branded foods ( ~ USD 2.2 billion) 3

4 Rs. Crs % NSV Business Performance 1,500 NSV Profit from operations 6.0% 1, % 1,300 1,200 1, % 4.5% 4.0% 3.5% 1,000 Q Q Q Q Q Q Q NSV (% Gr over PY) 21.4% 18.2% 15.6% 16.8% 10.8% 8.7% 16.8% A & SP (% to NSV) 7.5% 7.8% 7.0% 8.4% 8.1% 8.4% 8.4% 3.0% 4

5 YTD December 12 Performance Stand Alone Nine Months ended FY Growth Dec 12 Q1 Q2 Q3 Sales 12.1% 10.8% 8.7% 16.8% PAT 9.2% 3.9% 20.5% 5.3% Consolidated Growth Sales 12.6% 11.9% 9.5% 16.4% PAT 21.0% 18.4% 36.4% 11.0% 5

6 Our Business other than Domestic Biscuit is Significant and Growing ~ Rs 15,000 MM* Dairy Cake Bread Rusk International * Annualized 6

Applies to Biscuits, Bread, Rusk and Some Dairy Products Pack sizes

7 Two Significant and Discontinuous Changes in Q3 Implementation of Legal Metrology Rules Unexpected and steep jump in commodity prices Applies to Biscuits, Bread, Rusk and Some Dairy Products Pack sizes are standardized Packs below certain price points exempted from standards 7

Sudden And Unexpected Increase In Flour & Sugar Prices Flour Market Price (2010-11=100) 117 125 Sugar Market Price (2010-11=100)

8 Sudden And Unexpected Increase In Flour & Sugar Prices Flour Market Price ( =100) Sugar Market Price ( =100) Q Q Q Q Q Q Market Prices 8

(Index 2010-11 = 100) While moderate inflation in other key commodities was not adequate to off-set 2010-11 2011-12 Q1 12-13 Q2

9 (Index = 100) While moderate inflation in other key commodities was not adequate to off-set Q Q Q RPO SMP Butter Mfg Fuel Market Prices 9

10 3 Key Areas Drive Business Operations Newness & Innovation New delightful offerings Higher value realization Operational Excellence Restructuring Cost Base Comprehensive projects from design to delivery Continuous improvement in operations Revenue Management Differentiated brands Differential Pricing

11 Significant New Initiatives Strengthening The Tiger Proposition 11

12 Significant New Initiatives Celebrating 25 Years Of Good Day With Consumers 12

13 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Key Brands On Strong Growth Trajectory Marie Gold Sales (Apr-11 = 100) Milk Bikis Sales (Apr-11 = 100) Source: Nielsen 13

(Apr-11 = 100) 224 BIL 50-50 Sales (Apr-11 = 100) 124 100 100

14 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Key Brands On Growth Trajectory BIL NutriChoice Sales (Apr-11 = 100) 224 BIL Sales (Apr-11 = 100) Source: Nielsen 14

15 . Backed by Consistent Brand Investment A&SP (% of NSV) Q Q Q Q Q

16 ..And Incremental Investment in the Back-end Orissa Bihar New Greenfield Factory coming up in Jhagadia - Gujarat 16

17 Managing Cost Structured Effectiveness & Efficiency Initiatives Projects from Design to Delivery Greenfield Projects Continuous Improvement TQM, TPM, Kaizen Technology Initiatives 17

18 Consolidating Innovation 18

19 Consolidating Innovation Innovation Sales Index ( =100)

20 Awards & Recognition 20

21 Awards & Recognition Golden Peacock Quality Award Asia-Pacific Quality Award 21

22 To Summarize We operate in a large and competitive market Brands are our business. And we continue to invest both in the front-end and back-end to strengthen them Despite discontinuity in commodity and regulatory environment we have restored growth momentum and improved margins Our focus is on 3 areas to drive operational excellence Innovation, Revenue Management and Cost Management 22

Britannia Industries

Britannia Industries Sustains momentum; Input cost gains peaked out November 09, 2015 Amnish Aggarwal amnishaggarwal@plindia.com +91 22 66322233 Gaurav Jogani gauravjogani@plindia.com +91 22 66322238 Rating Accumulate Price