Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q4 FY2021 Earnings Presentation
51 slides from Tata Consumer Products's earnings presentation, May 6, 2021
Slide 1: Exchange filing cover letter for investor presentation
May 6, 2021 The National Stock Exchange of BSE Ltd. The Calcutta Stock India Ltd. Corporate Relationship Dept. Exchange Ltd. Exchange Plaza,5th floor 1st Floor, New Trading Wing 7 Lyons Range Plot No. C/1, G Block Rotunda Building, PJ Towers Kolkata 700 001 Bandra Kurla Complex Dalal Street Scrip Co
Slide 2: Investor Presentation
Investor Presentation For the quarter & financial year ended March 2021 6th May 21
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 – Business performance India – International Financial performance Outlook
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 ₹ 11.6K crore consolidated Reach to almost 200mn revenue in FY21 and current households in India and market cap of ~₹61k Cr. dis
Slide 6: Executive Summary
> OC DPM IOMEOMNONC Go) 5 , 0 CCPC Cree OO Executive Summary TATA CONSUMER PRODUCTS
Slide 7: Executive Summary
Executive Summary ▪ During Q4FY21, India business topline accelerated while International business was soft due to pantry loading in the base quarter. ▪ Consolidated EBITDA growth for the quarter was impacted by tea inflation in India and increased A&P investments, that more than offset the strong E
Slide 8: Performance Overview
> OC DPM IOMEOMNONC Go) 5 , 0 CCPC Cree OO Performance Overview TATA CONSUMER PRODUCTS
Slide 9: Key Businesses snapshot – Q4FY21
Key Businesses snapshot – Q4FY21 International Beverages In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 1,205 641 313 515 47 280 3,037 Revenue Growth 60% 22% 5% 2% -34% 31% 26% Constant c
Slide 10: Key Businesses snapshot – FY21
Key Businesses snapshot – FY21 International Beverages In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 4,601 2,441 1,293 1,983 193 964 11,602 Revenue Growth 36% 18% 15% 10% -35% 15% 20% Co
Slide 11: Group Performance at a glance – Q4FY21
Group Performance at a glance – Q4FY21 ₹ 3,037 Cr. ₹ 317 Cr. ₹ 262 Cr. ₹ 74 Cr. ~₹ 2,421 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 26% 1% 6% 161% Margin% 10.4% 8.6% 2.4% Margin expansion -260 bps -170 bps +750 bps (Y-on-Y) EPS 0.58 (EPS) EPS Growth (Y-on-Y) +170% (EPS)
Slide 12: Group Performance at a glance – FY21
Group Performance at a glance – FY21 ₹ 11,602 Cr. ₹ 1,569 Cr. ₹ 1,342 Cr. ₹ 930 Cr. ~₹ 2,421 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 20% 20% 24% 102% Margin% 13.5% 11.6% 8.0% Margin expansion -10 bps +40 bps +320 bps (Y-on-Y) EPS 9.30 (EPS) EPS Growth (Y-on-Y) +86% (
Slide 13: Progress against Strategic Priorities
e oe 8 RR 0 (CCPC PEG OO Progress agains Strategic Priorities
Slide 14: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create future Explore new Embed accelerate core & Innovation synergies ready org opportunities sustainability business 13
Slide 15: Expanding our reach
Expanding our reach Numeric distribution Direct coverage +15% Increase +11% On track for Increase by Sep’21 TSOs1 # Rural distributors Tea Salt Ecommerce contribution (% of Sales ) Market share Channel growth 5.2% MT 2.5% Tea +190 bps2 MT +31% YoY Salt + 160 bps2 Ecomm +130% YoY FY20 FY21 All number
Slide 16: Powering our brands
Powering our brands Tata Tea Gold - TATA Tea Gold celebrated this Women’s day by launching season 2 of ‘Dil Ki Suno’ stories of today’s women, in collaboration with FilterCopy (5 webisodes) Tata Tea Agni, went on Air and local Print highlighting its value and strength positioning. TATA Tea Kanan Dev
Slide 17: Powering our brands
Powering our brands National #SawaalDeshKiSehatKa campaign Snapshot of #Sampann Poshan Thali on social media live on TV to amplify the Iodine proposition – Tata Salt Tata Salt Lite’s #TakeItLite campaign focused on HHs in Urban India Influencer- led Digital & PR campaign aimed at driving Sampann (wh
Slide 18: Driving premiumization
Driving premiumization Beverages Foods D2C https://tatacoffeesonnets.com https://www.tatatea1868.com 17
Slide 19: Volume growth acceleration across India business
Volume growth acceleration across India business India beverages volume growth trend India foods volume growth trend 25% 25% 20% 3 year CAGR 20% 3 year CAGR FY21 FY21 (FY17-20) (FY17-20) 7.1% 11.6% 3.4% 11.4% 15% 15% 10% 10% 5% 5% 0% 0% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY20
Slide 20: Digital transformation
Digital transformation Distributor Management Integrated Business System (DMS) Planning (IBP) Sales Force Chief Digital Officer Automation (SFA) onboard Enterprise Resource Planning (S4 Hana) Improved sales Lower cost to Lower working Improved Lower supply outcomes serve capital service levels chain
Slide 21: Fueling the innovation funnel
Fueling the innovation funnel 20
Slide 22: India business integration update: Process completed
India business integration update: Process completed Critical Workstreams (Feb’20 – Mar’21) Key Impact • Integration complete for all critical Future ▪ Integrated organization structure and harmonized way of working workstreams; common ways of working being Ready across organization matured. Organiz
Slide 23: Soulfull - integration update
Soulfull - integration update Systemic Integration Playbook Soulfull Integration Results Maximize synergies and ensure greater Ensured billing through TCPL within ~45 days of deal distribution of fixed cost closure (April ‘21) Develop systematic, scalable model for On-track for process integration a
Slide 24: Capitalising on inorganic opportunities
Capitalising on inorganic opportunities NourishCo Soulfull Ragi Bites Millet Muesli Smoothix Oat Millets Meal ▪ Strategic fit for our Health & Wellness portfolio. ▪ Platform for future growth. ▪ Significant scope for geographic expansion (15k outlets) ▪ Significant scope for geographic expansion (~3
Slide 25: Building A Future Ready Organisation
Building A Future Ready Organisation R&D Structure Shopper Talent in Dedicated CDO Revenue Dedicated IR & Resources marketing Ecommerce Integration Management Management Office (IMO) 24
Slide 26: Continued focus on sustainability
Continued focus on sustainability (Details in linked videos below) Climate change management Circular economy GRI Sustainability Report Water management Sustainable sourcing 25
Slide 27: Macro environment
ee 8 SRB egg «i gk Sn oO fC Macro environment
Slide 28: Macro and commodity overview
Macro and commodity overview Global GDP growth rates Commodity price trend Tea Prices Coffee Prices % 128 5.4 4.6 189 194 $c / KG 111 2.3 3.3 4.0 6.4 190 188 101 $c/ LB 2.1 0.3 0.4 1.3 272 2.0 -2.8 219 ₹ / KG 1.5 1.4 1.2 194 -2.4 -1.1 158 -2.2 -9.0 -7.3 $c/ LB -8.5 -7.3 69 163 ₹ / KG 59 62 153 145 -
Slide 29: Market context – category growth rates
Market context – category growth rates Decline due to lapping of high base that saw pantry loading US UK Canada India • Regular black hot tea category saw further declines in US in contrast to strong growth seen in H1. In Canada, the category decelerated from Q2. In UK, Regular black tea saw a big d
Slide 30: Business performance - India
ee 8 SRB egg - § SSMEEEOO oo oll Business performance - India I
Slide 31: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter grew • Margins for the quarter impacted by Tata Tea Premium celebrates the +32% 53%, with 23% volume growth, marginally benefitting from a low tea inflation & increased A&P investment but we continued State's pride on Odisha D
Slide 32: India Foods
India Foods An initiative to celebrate home cooked food & create awareness Performance commentary about wholesomeness of Indian • Salt revenue grew 26% during the • Tata Sampann portfolio grew 2% quintessential thali (plate) #SampannPoshanThali +18% quarter, bringing FY21 growth to 17%. during the q
Slide 33: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) * 186% Performance commentary Sales as a % of PY • Strong growth momentum sustained • TWP achieved highest ever volume 109% 188Cr in Q4 with revenue growth of 86%. during the year, growing 60% in volumes in FY21. FY21 Revenue 82% 64% • Revenue for the year grew 4%, • Fit
Slide 34: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary Tata Coffee offers • Revenue for the quarter grew 30% Extractions unique customized blends in Instant Coffee +14%# led by both the plantations & the extractions business. • Overall extraction business grew 12% in FY21, led by Vietnam
Slide 35: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue growth of 14% in Q4, albeit • Added 39 new stores & entered 7 94% on a low base that was impacted by COVID-19 in March’20. new cities during the year. Stores re-opened* • Revenue for the year declined 33%, • Experimented with new store driven by t
Slide 36: Business performance - International
ee 8 SRB egg 8 EO il, Business performance - International I
Slide 37: UK
UK Performance commentary • Revenue for the quarter declined • Tetley grew share in the rapidly +2% 10% owing to pantry up-stocking in base quarter. growing segments of Decaf, F&H and Green tea during the year. FY21 Revenue Growth^ • Revenue for the year grew 2% • While OOH & wholesale channels (con
Slide 38: USA
USA New espresso-based and flavored coffee offerings added to EOC Barista Blends Performance commentary • Coffee: Revenue for the quarter grew • Tea (excluding Empirical): Robust +9% 3% (constant currency), due to pantry loading in base quarter. revenue growth of 16% during FY21, driven by innovatio
Slide 39: Canada
Canada Performance commentary • Revenue for the quarter grew 6% +15% (constant currency), despite a high base that saw pantry loading last • Specialty tea sales were further boosted by the new Tetley Super 3.0 range introduced this year. We FY21 Revenue Growth^ year. are now the volume leaders in Sp
Slide 40: Awards & recognition
Awards & recognition 1. India Foods 2. India Beverages Tata Salt received several awards at Tata Tea Premium won ‘Disruptive India Digital Marketing Awards 2020 brand of the year’ at The Brands and India Digiplus Awards 2021. Disruption Awards’21. 3. Sustainable 4. Operational Development Excellence
Slide 41: Financial Performance
ee 8 SRB egg - § SSMEEEOO oo oll Financial Performance
Slide 42: Highlights – for the quarter ended Mar'21
Highlights – for the quarter ended Mar’21 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: Group Revenue grew by 26% (24% in constant Revenue from 632 3,037 currency terms) operations 515 1,850 2,405 1,335 • India Beverages (including RTD) grew by 60%. • India Foods higher by 22%. +26% +39% • In
Slide 43: Financials: Consolidated
Financials: Consolidated Quarter ended Mar’21 Profit and Loss statement Year ended Mar’21 Q4FY21 Q4FY20 Change % (all nos. in ₹ Crores) FY21 FY20 Change % 3,037 2,405 26% Revenue from operations 11,602 9,637 20% 317 312 1% EBITDA 1,569 1,310 20% 10.4 % 13.0% % 13.5% 13.6% 251 248 1% EBIT 1,315 1069
Slide 44: Financials: Standalone
Financials: Standalone Quarter ended Mar’21 Profit and Loss statement Year ended Mar’21 Q4FY21 Q4FY20 Change % (all nos. in ₹ Crores) FY21 Y20 Change % 1,850 1,335 39% Revenue from operations 7,154 5,690 26% 142 160 (11)% EBITDA 918 806 14% 7.7% 12.0% % 12.8% 14.2% 109 127 (14)% EBIT 792 692 14% 5.9
Slide 45: Segment-wise Performance – FY21
Segment-wise Performance – FY21 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr FY21 FY20 Change FY21 FY20 Change 44 % India beverages (%) (%) 23% India foods India Beverages 4,601 3,377 36% 496 465 7% 33 % International beverages India Foods 2,442 2,064 18% 388 266 46% I
Slide 46: Segment-wise Performance – Q4FY21
Segment-wise Performance – Q4FY21 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q4 FY21 Q4 FY20 Change Q4 FY21 Q4 FY20 Change 44 % India beverages (%) (%) 24% India foods India Beverages 1,205 755 60% 52 87 (40)% 32 % International beverages India Foods 642 524 22% 87 5
Slide 47: Outlook
Slide 48: Outlook
Outlook Macros ▪ Second wave of COVID-19 in India creating uncertainty in the near-term, but the outlook for Consumer Staples remains stable. ▪ At the current pace of vaccination in the International Markets, the outlook there seems more optimistic. Business ▪ The safety and well being of our employ
Slide 49: Thank You
TATA CONSUMER PRODUCTS Thank You
Slide 50: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on March 31, 2021 Stock data BSE Ticker 500800 Others 4% MFs/ UTI/ AIFs Promoter and NSE Ticker TATACONSUM 9% promoter Group Market Capitalization (Mar 31, 2021) ₹588.8 bn 35% Number of Shares Outstanding 921.6 Mn. Individual 22% Insurance Co
Slide 51: For more information
For more information Contact us: Nidhi Verma Satya Muniasamy Head – Investor Relations & Corporate Communication satya.muniasamy@tataconsumer.com nidhi.verma@tataconsumer.com Write to us at investor.relations@tataconsumer.com Call us at +91-22-61218400 tataconsumer.com TataConsumer tata-consumer-pro
Tata Consumer Products — Q4 FY2021 Earnings Presentation on 6ix