Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q2 FY24 Earnings Presentation
43 slides from Tata Consumer Products's earnings presentation, Oct 31, 2023
Slide 1: Exchange filing cover letter
October 31, 2023 National Stock Exchange of India BSE Limited The Calcutta Stock Limited Phiroze Jeejeebhoy Towers Exchange Limited Exchange Plaza, C-1, G Block Dalal Street 7 Lyons Range Bandra Kurla Complex, Bandra (E) Mumbai 400001 Kolkata 700 001 Mumbai 400 051 Scrip Code – 10000027 Scrip Code –
Slide 2: Investor Presentation for the quarter ended September 2023
Investor Presentation For the quarter ended September 2023 31st October 2023
Slide 3: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 4: Agenda
Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance Financial performance Concluding remarks Other 33
Slide 5: We are Tata Consumer Products
We are Tata Consumer Products In a nutshell Integrated F&B company #2 branded tea player with rich heritage of Tata, globally aspiring for a larger share of the FMCG World ₹ 13.8K crore consolidated Reach of 200mn+ revenue in FY23 with a households in India and market cap of ~₹81k* Cr distribute to
Slide 6: Executive Summary
) CO ORRIN SC CC Executive Summary TATA CONSUMER PRODUCTS
Slide 7: Executive Summary
Executive Summary We delivered yet another strong quarter with consolidated revenue growth of 11% (10% constant currency) driven by strong growth across our India businesses. This brought the 4-year revenue CAGR to 12% in Q2FY24. During the quarter: o India Beverages1 grew 8%, with tea volumes gro
Slide 8: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 9: Key Businesses Snapshot – Q2FY24
Key Businesses Snapshot – Q2FY24 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 1,337 1,066 350 600 348 3,734 Revenue growth 8% 16% -7% 30% [16%]* 2% 11% [9%]* Constant currency growth -10% 23% [8%]* 1% 10% [8%] Vo
Slide 10: Key Businesses Snapshot – H1FY24
Key Businesses Snapshot – H1FY24 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 2,781 2,099 714 1,130 688 7,475 Revenue growth 9% 19% -2% 20% [8%]* 7% 12% [10%]* Constant currency growth -8% 15% [2%]* 5% 10% [8.5%]
Slide 11: Summary of Group Performance – Q2FY24
Summary of Group Performance – Q2FY24 ₹ 3,734 Cr. ₹ 569 Cr. ₹ 505 Cr. ₹ 364 Cr. ₹ 375 Cr. ₹ 2,526 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 11% [10%] 30% 36% -7% 24% Margin 15.2% 13.5% 9.7% 10.0% Margin expansion (YoY) +220bps +250bps -180bps +100b
Slide 12: Summary of Group Performance – H1FY24
Summary of Group Performance – H1FY24 ₹ 7,475 Cr. ₹ 1,116 Cr. ₹ 1,000 Cr. ₹ 702 Cr. ₹ 716 Cr. ₹ 2,526 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 12% [10%] 24% 29% 5% 20% Margin 14.9% 13.4% 9.4% 9.6% Margin expansion (YoY) +150bps +180bps -60bps +60b
Slide 13: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 14: Strategic Priorities
Strategic Priorities The picture can't be displayed. Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13 13
Slide 15: New milestones in S&D; momentum continues in alternate channels
New milestones in S&D; momentum continues in alternate channels 3.8m (Sep’23) Modern Trade Total Reach H1FY24 revenue growth Direct Reach H1FY24 new SKUs on shelves 1.5m (Sep’23) E-commerce Total reach of 3.8m outlets as of Sep’23, almost doubling total H1FY24 revenue growth reach since Sep’20.
Slide 16: India Business – Powering our brands
India Business – Powering our brands Q2FY24 A&P-to-Sales (India Branded Business) 6.7% Chakra Gold Leaf Premium Leaf Tea was launched Tata Salt’s new campaign ‘Tez Baccho Se Hi Toh with a campaign ‘The Choice of Success’ with Tez Desh Banta Hain’ emphasizes the crucial role of Market share – Tea Ras
Slide 17: Continuing the momentum on innovation (1/2)
Continuing the momentum on innovation (1/2) Say Never! Energy Drink Tata Gluco Plus Sports Drink Filter Coffee Decoction Foray into the energy drinks category tapping into Isotonic sports drink introduced in partnership Novel and convenient format with unique blends consumers’ need for functional be
Slide 18: Continuing the momentum on innovation (2/2)
Continuing the momentum on innovation (2/2) Tata Soulfull Ragi Bites Choco Sticks Tata Simply Better Cold Pressed Oils Tata Sampann Vermicelli Millet-based wafer sticks with chocolate Cold-pressed oils launched in coconut, Entry into the fast-growing vermicelli category filling, unlocking the goodne
Slide 19: Momentum continues in the new Engines of Growth
Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 18% 15% 15% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 Q2'23 Q2'24 Q2FY24 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, the RTE/RTC business (Tata Smartfooz). Tata So
Slide 20: Reaffirming our commitment to sustainability
Reaffirming our commitment to sustainability We have announced our sustainability targets for FY 2025-26, in line with our long-term sustainability commitments. Climate Adaptation Carbon neutral on Scope 1 and Scope 2 across all geographies 35% of all power requirement to be from renewable sourc
Slide 21: Macro environment
) CO ORRIN SC CC Macro environment
Slide 22: Key Commodities’ movement
Key Commodities’ movement Tea Coffee N. India Tea (INR/kg) S. India Tea (INR/kg) Kenya Tea ($c/kg) Arabica Coffee ($c/lbs) Robusta Coffee ($c/lbs) 246 236 233 229 234 225 223 222 224 217 208 208 191 185 186 212 177 177 173 195 197 195 156 188 177 119 122 149 144 105 103 94 96 93 86 88 128 115 117 11
Slide 23: Market context – category growth rates (value)
Market context – category growth rates (value) +18.8% +11.3% 6.2% +4.0% 5.2% 3.4% +0.9% +0.1% US Regular Black Tea UK Regular Black Tea Canada Regular Black Tea India Branded Tea US Bags Coffee UK Fruit & Herbals Tea Canada Speciality Tea US K-cup Coffee Source: Nielsen: 12 weeks (Value) – Sep’23 22
Slide 24: Business performance
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance
Slide 25: India Packaged Beverages
India Packaged Beverages New Launch - Tetley Premium Performance commentary Black Leaf Tea with added long +5% • Revenue for the quarter grew 5%, with 3% volume growth, recording a leaves that give strong taste and third consecutive quarter of positive volume growth. rich aroma Revenue Growth • This
Slide 26: India Foods
India Foods Performance commentary +16% • Salt revenue grew 8% during the quarter, on a high base of last year (Q2FY23 salt grew 27%). This brings the 4-year revenue CAGR of Revenue Growth salt to 16%. • Tata Sampann delivered yet another strong quarter, growing 47% YoY, with robust volume growth. T
Slide 27: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary 172Cr • NourishCo recorded a revenue growth of 25% during the quarter, bringing H1FY24 growth to 44% despite unfavourable weather conditions. Revenue* • The growth was broad based across products and markets. • Profitability improved significantly Y
Slide 28: Tata Coffee (inc Vietnam ex EOC)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +1%# • Revenue for the quarter grew 1%# led by the extractions business. • The plantations business recorded a revenue decline of 11%, primarily Revenue Growth led by lower coffee volumes. • Overall extractions business grew 1
Slide 29: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 14% YoY. 22 • Added 22 net new stores during the quarter taking net new stores Net new stores added to 37 in H1FY24. We also entered 2 new cities during the quarter. opened during the quarter • Store profit contribution remain
Slide 30: International operations
International operations UK USA Canada Revenue for the quarter grew 13% in CC Coffee revenue for the quarter declined Revenue for the quarter grew 8%^ driven by terms (reported revenue growth of 25%). 10%^. pricing. The roll out of the revamped Tetley tea EOC released its new ad campaign ‘
Slide 31: Financial Performance
0 OOO Ss e © 6© ©~ & 8 . S * ee Financial Performance
Slide 32: Performance Highlights – Q2FY24
Performance Highlights – Q2FY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 11% (10% in constant currency terms) to Rs 3,734 Crs. 229 2,360 371 3,734 • Our India business grew 11%. Revenue from 2,131 3,363 operations • Constant currency (CC) growth in the International busi
Slide 33: Performance Highlights – H1FY24
Performance Highlights – H1FY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 12% (10% in constant currency) to Rs 7,475 Crs. 468 4,676 785 7,475 • Our India business grew 13%. Revenue from 4,208 6,690 operations • Constant currency (CC) growth in the International business w
Slide 34: Financials: Consolidated
Financials: Consolidated Quarter ended Sep’23 Profit and Loss statement Year-to-date Sep’23 Q2FY24 Q2FY23 Change % (all nos. in ₹ Crores) H1FY24 H1FY23 Change % 3,734 3,363 11% Revenue from operations 7,475 6,690 12 % 569 438 30% EBITDA 1,116 897 24 % 15.2 % 13.0% % 14.9% 13.4% 475 365 30% EBIT 940
Slide 35: Financials: Standalone
Financials: Standalone Quarter ended Sep’23 Profit and Loss statement Year-to-date Sep’23 Q2FY24 Q2FY23 Change % (all nos. in ₹ Crores) Q2FY24 Q2FY23 Change % 2,360 2,131 11% Revenue from operations 4,676 4,208 11% 387 336 15% EBITDA 743 643 16% 16.4 % 15.8% % 15.9% 15.3% 345 300 15% EBIT 663 572 16
Slide 36: Segment-wise Performance Q2FY24
Segment-wise Performance Q2FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q2 FY24 Q2 FY23 Change Q2 FY24 Q2 FY23 Change India Business 2,404 2,160 11% 331 308 7% 72% India Business International Business 950 839 13% 96 60 60% 28% International Business Total Branded
Slide 37: Segment-wise Performance H1FY24
Segment-wise Performance H1FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q2 FY24 Q2 FY23 Change Q2 FY24 Q2 FY23 Change India Business 4,882 4,305 13% 659 581 13% 73% India Business International Business 1,845 1,675 10% 212 164 29% 27% International Business Total
Slide 38: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 39: To conclude
To conclude Macros We have seen stable demand trends in India business and remain cautiously optimistic. Both, the branded tea and branded coffee categories, continue to face demand headwinds in our International markets, even as we have delivered a competitive performance. Business In Q2FY24,
Slide 40: Q&A
TATA CONSUMER PRODUCTS Q&A PREMIUM = S| TATA a SAIATER Yumside SOULFULL AGN COLD COFFEE
Slide 41: Other
Slide 42: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th September, 2023 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (Sep 30, 2023) ₹ 814.7 bn 19% 35% Number of Shares Outstanding 929.0 Mn MFs/ UTI/ AIFs 6% Insura
Slide 43: Thank You
Thank You For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Kaiwan Olia Manager – Investor Relations Kaiwan.olia@tataconsumer.com Retail investors - Contact Call us at investor.relations@tataconsumer.co
Tata Consumer Products — Q2 FY24 Earnings Presentation on 6ix