Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2025 Earnings Presentation
38 slides from Tata Consumer Products's earnings presentation, Jul 30, 2024
Slide 1: Investor Presentation
Investor Presentation For the quarter ended June 2024 30th July 2024
Slide 2: 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 3: Details of the Rights Issue
Details of the Rights Issue ▪ Company has filed the Letter of Offer (LOF) with SEBI. ▪ Issue Details: ▪ Rights Issue Price – INR 818 ▪ Total number of Equity Shares and Rights Issue size: 3,66,47,492 fully paid‐up Equity Shares each for amount aggregating up to ₹2,997.77 Crs. ▪ Record Date – July 27
Slide 4: Agenda
Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance Financial performance Concluding remarks Other 44
Slide 5: Executive Summary
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Slide 6: Executive Summary
Executive Summary ▪ Consolidated revenue growth was 16% in Q1FY25 (10% organic growth). During the quarter, o India Beverages1 grew 6% (1% organic), with flat tea volumes YoY. o India Foods2 continued its strong trajectory, with revenue up 30% (14% organic). Volume growth was 10%. o International bu
Slide 7: Performance Overview
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Slide 8: Key Businesses Snapshot – Q1FY25
Key Businesses Snapshot – Q1FY25 In ₹ Cr India Beverages India International Non-Branded Consolidated (unless specified) Foods Revenue 1,523 1,346 988 501 4,352 Revenue growth 6% [1%] 30% [14%] 10% 33% 16% [10%] Constant currency growth 8% 32% 16% [9%] Key Brands Notes: a) India Beverages includes P
Slide 9: Summary of Group Performance – Q1FY25
Summary of Group Performance – Q1FY25 ₹ 4,352 Cr. ₹ 671 Cr. ₹ 465 Cr. ₹ 302 Cr. ₹ 289 Cr. ₹ -2,857 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 16% 23% -6% -11% -14% Margin 15.4% 10.7% 6.9% 6.6% Margin expansion (YoY) 80bps -250bps -220bps -240bps EPS
Slide 10: Progress against Strategic Priorities
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Slide 11: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 11 11
Slide 12: Sales & distribution – Adding 35% more feet on street
Sales & distribution – Adding 35% more feet on street 1m Population+ 500k Population+ (and select 500k+) Distributor Distributor Salesman 1 Salesman 2 Salesman 3 Salesman 1 Salesman 2 12 12
Slide 13: Channels of the Future
Channels of the Future Modern Trade Pharmacies • TCPL now has a portfolio well suited for the Pharma channel • Pilot initiated in six cities Q1FY25 revenue growth E-commerce Food Service • Key customers include HoReCa, corporate canteens, and B2B. • Pilots planned in two cities Q1FY25 revenue growth
Slide 14: India Business – Investing behind our brands
India Business – Investing behind our brands Q1FY25 A&P-to-Sales* 7.8% * India business Public 14
Slide 15: Continued focus on value-added Innovation
Continued focus on value-added Innovation Tata Salt Panch Tatva Easy Cook Ragi Atta Masala Oats + Dal Shakti Cold pressed Olive Oil 15
Slide 16: Growth businesses now 29% of India Business
Growth businesses now 29% of India Business Growth Businesses as a % of India Business 29% Combined YoY 20% revenue growth 18% 15% Q1FY25 10% 8% 6% FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 Organic India w.e.f. 16th April 24. Growth businesses include all revenue for Capital Foods and Organic India, in
Slide 17: Capital Foods' integration completed
Capital Foods’ integration completed Accelerated integration delivered within 90 days leveraging our detailed integration playbook Policy & Regulatory GTM Integration Digital Integration Back-end Integration Org Structure Compliance Demand Planning Integration with alignment of production & dispatch
Slide 18: Organic India – Fast-tracking integration
Organic India – Fast-tracking integration Integration/Harmonization on Track Day-1 Billing Policy & Certification Front-end Integration Back-end Integration Pharma Channel Strategy 17th April 2024 Compliance Golden invoice generated with Quality & Regulatory policies Integration activities for all O
Slide 19: Macro environment
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Slide 20: 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) 229 234 224 229 223 222 221 212 217 208 208 210 212 208 185 190 186 177 173 174 195 197 195 156 149 177 180 119 122 118 144 96 133 94 93 88 128 117 117 1
Slide 21: Business performance
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Slide 22: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter declined 1%, with flat volumes. • Category was impacted by an intense summer. • Coffee continued its strong trajectory and grew 28%. -1% Revenue Growth Other updates • Tata Tea Chakra Vita Care launched in Tamil Nadu to streng
Slide 23: India Foods
India Foods Performance commentary • Salt revenue grew 9% during the quarter, driven by a strong 8% +30% volume growth. Revenue Growth • Value-added salts grew 35%, in line with our premiumization agenda. • Tata Sampann continued its strong momentum and grew 37%. +14% Organic Revenue Growth* Other u
Slide 24: Ready-to-Drink (RTD)
Ready-to-Drink (RTD) Performance commentary • The RTD business recorded a revenue growth of 7% in the quarter 311Cr cycling a high base (+60%). A strong summer impacted category demand with reduced out-of-home consumption especially for single- Revenue serve packs. • Tata Copper+ continued its momen
Slide 25: New acquisitions – Capital Foods & Organic India
New acquisitions – Capital Foods & Organic India Performance commentary • Newly acquired businesses delivered a decent performance despite 164Cr necessary channel inventory clean up in Capital Foods, and the integration phase in Organic India. Capital Foods Revenue • Gross margin for both businesses
Slide 26: Non-branded Business
Non-branded Business Performance commentary • Revenue for the quarter grew 32%# led by exceptionally strong coffee realizations across solubles and plantations. • The solubles business grew 34%# with strong performance in both +32%# coffee and tea • Plantations recorded a growth of 34%. Revenue Grow
Slide 27: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 4%. 17 • 17 net new stores added during the quarter. The total store count stood Net new stores at 438 as of Jun’24. opened during the • Entered 4 new cities during the quarter and now present across 65 cities. quarter Other u
Slide 28: International operations
International operations UK USA Canada ➢ Revenue for the quarter grew 14% ➢ Coffee revenue for the quarter ➢ Revenue for the quarter grew 12% (reported revenue growth of 18%). declined 4% (reported revenue (reported revenue growth decline of 2%) impacted by category of 14%). ➢ Strong improvement in
Slide 29: Financial Performance
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Slide 30: Performance Highlights – Q1FY25
Performance Highlights – Q1FY25 Consolidated revenue grew 16% (16% in constant Standalone (in ₹ Cr) Consolidated (in ₹ Cr) currency terms) to Rs 4,352 Crs. • India business* grew 16%. Organically (net of 503 2,923 611 4,352 Revenue from 3,741 acquisitions), growth was 7%. 2,420 operations • Constant
Slide 31: Financials: Standalone and Consolidated
Financials: Standalone and Consolidated Standalone Profit and Loss statement Consolidated Q1FY25 Q1FY24 Change % (all nos. in ₹ Crores) Q1FY25 Q1FY24 Change % 2,923 2,420 21% Revenue from operations 4,352 3,741 16% 403 374 8% EBITDA 671 547 23 % 13.8 % 15.4% % 15.4% 14.6% (45) (42) Depreciation and
Slide 32: Segment-wise Performance Q1FY25
Segment-wise Performance Q1FY25 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q1 FY25 Q1 FY24 Change Q1 FY25 Q1 FY24 Change India Business 2,815 2,478 14% 326 328 -1% 73% India Business International Business 1,046 895 17% 176 116 52% 27% International Business Total Br
Slide 33: Concluding remarks
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Slide 34: To conclude
To conclude Macros ▪ Intense summer in many parts of the country impacted demand for hot beverages and out-of-home categories ▪ Within key international markets, demand remains stable in the UK and Canada. The US coffee category continues to face some headwinds. ▪ Erratic weather patterns have affec
Slide 35: Q&A
Q&A TATA CONSUMER PRODUCTS Joy full Fruit Nut COLD COFFEE AGNI Yuunside TATA a SOULFULL PREMIUM 3 aspicy nna mag!
Slide 36: Other
Slide 37: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th June 2024 Stock data Others BSE Ticker 500800 4% NSE Ticker TATACONSUM Individual Promoter and 19% promoter Group Market Capitalization (Jun 30, 2024) ₹ 1,045.4 bn 34% Number of Shares Outstanding 952.8 Mn MFs/ UTI/ AIFs 8% Insurance
Slide 38: Thank You
Thank You For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Kaiwan Olia Senior Manager – Investor Relations Kaiwan.olia@tataconsumer.com Retail investors - Contact Call us at investor.relations@tatacons
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