Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q4 FY2023 Earnings Presentation
48 slides from Tata Consumer Products's earnings presentation, Apr 25, 2023
Slide 1: Investor Presentation
Investor Presentation For the quarter and fiscal year ended March 2023 25th April 2023
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: Agenda
Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance Financial performance Concluding remarks Other 3
Slide 4: 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 north of 200mn revenue in FY23 with current households in India and market cap of ~₹66k* Cr dis
Slide 5: Executive Summary
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Slide 6: Executive Summary
Executive Summary ▪ We had a strong fourth quarter with consolidated revenue growth of 14% and a consolidated EBITDA margin of 14.3%. During the quarter, o India Beverages1 business grew 8%, with tea volumes returning to growth, up 3% YoY. o India Foods2 business continued its strong trajectory, wit
Slide 7: Performance Overview
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Slide 8: Key Businesses Snapshot – Q4FY23
Key Businesses Snapshot – Q4FY23 In ₹ Cr India India US Coffee International Tata Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 1,286 960 377 607 352 3,619 Revenue growth 8% 26% 6% 14% [6%]* 16% 14% Constant currency growth -4% 12% [4%]* 13% 12% Volume growth 3%
Slide 9: Key Businesses Snapshot – FY23
Key Businesses Snapshot – FY23 In ₹ Cr India India US Coffee International Tata Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 5,051 3,666 1,489 2,100 1,360 13,783 Revenue growth 1% 26% 15% 3% [1%]* 27% 11% Constant currency growth 7% 5% [3%]* 25% 10% Volume grow
Slide 10: Summary of Group Performance – Q4FY23
Summary of Group Performance – Q4FY23 ₹ 3,619 Cr. ₹ 518 Cr. ₹ 456 Cr. ₹ 290 Cr. ₹ 293 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 14% [12%] 13% 13% 21% 15% Margin 14.3% 12.6% 8% 8.1% Margin expansion (YoY) -10bps -10bps 50bps 10bps EPS 2.
Slide 11: Summary of Group Performance – FY23
Summary of Group Performance – FY23 ₹ 13,783 Cr. ₹ 1874 Cr. ₹ 1,634 Cr. ₹ 1,320 Cr. ₹ 1,174 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 11% [10%] 7% 8% 30% 11% Margin 13.6% 11.9% 9.6% 8.5% Margin expansion (YoY) -50bps -30bps 140bps Flat
Slide 12: Progress against Strategic Priorities
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Slide 13: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13 13
Slide 14: Progress on S&D – delivering on commitments
Progress on S&D – delivering on commitments Direct reach (m outlets) Total reach (m outlets) 4.0 S&D Agenda for FY24 3.8 ✓ Increase total reach to 4m outlets 3x direct reach ✓ Increase bandwidth at the front end through split routes for salesmen in 1.5 Ten Lac Plus Population (TLP) towns. 1.3 0.7 ✓
Slide 15: Alternate channels continue to fuel growth and innovation
Alternate channels continue to fuel growth and innovation Modern Trade E-commerce FY23 revenue growth FY23 revenue growth FY23 contribution to FY23 contribution to India revenue India revenue (ex. NourishCo) (ex. NourishCo) New SKUs on shelf in FY23 NPD contribution in FY23 All numbers above are for
Slide 16: Continuing our hyperlocal approach
Continuing our hyperlocal approach Tata Tea Premium celebrated Lohri in Punjab with limited-edition festive packs and an impactful 360° campaign. Tetley’s made a bold statement this International Women’s Day with its viral #everyBODYcan campaign. Market share – Tea Tata Tea Premium celebrated India’
Slide 17: Strengthening our Salt business through a multi-brand play
Strengthening our Salt business through a multi-brand play From mostly vacuum-evaporated salt, we now offer consumers a complete assortment across various types, benefits, and price points. Segment Assortment Price index Market share Super Premium >4.0x Salt +76bps1 Premium, 1.0-3.0x Share of Value-
Slide 18: Upping the ante on innovation
Upping the ante on innovation Beverages Foods Innovation to sales 3.4% 2.7% 1.4% 0.8% FY20 FY21 FY22 FY23 Number of new launches per year 34 19 14 New Categories FY21 FY22 FY23 18 18
Slide 19: Continued focus on Digital
Continued focus on Digital Journey So Far Shift to cloud Single Instance Integrated S&D IBP Clearview of SAP Backbone Analytics Next Frontier – Lead Themes Data-driven Revenue Data-driven Mktg & AI/ML Led Data-driven NPD Growth Management ROI-led spend Procurement Org (RGM) allocation 19 19
Slide 20: Simplify, Align & Synergize
Simplify, Align & Synergize Simplify Align Synergize Consolidation of legal structure to drive efficiencies Reduce the number of entities from 45 to ~25 Consolidating ownership in JVs Bangladesh Composite Scheme of Demerger & Merger South Africa 2020
Slide 21: Momentum continues in the new Engines of Growth
Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 15% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 FY23 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, and the RTE/RTC business (Tata Smartfooz). Tata Soulfull & Tata Smar
Slide 22: Progress during the year on our acquisitions
Progress during the year on our acquisitions Scaled to a net sales of INR 621 cr. in Soulfull revenue grew 100%+ YoY Rebranded TataQ to Tata Sampann FY23, up from Rs 180 cr. in FY20. Yumside for domestic markets and Continued to capitalize on TCPL’s Tata Raasa for international markets. extensive di
Slide 23: Tata Starbucks scaling rapidly
Tata Starbucks scaling rapidly Rs. 1,087 Cr. 333 41 71 FY23 Net Sales Total stores Cities New stores added in FY23 Pilot programme Tata Starbucks is looking to rapidly expand its We ran a pilot in 2022 across four cities in India to: presence in the coming years. To achieve this, we ✓ Drive familiar
Slide 24: Striving towards a sustainable future – our sustainability goals
Striving towards a sustainable future – our sustainability goals ▪ During the year, we released our ESG strategy along with specific commitments across parameters. ▪ In the UK, we have switched to Green Electricity procurement completely. ▪ TCPL won Gold Award in the Climate Change category at the
Slide 25: 3-years since TCPL: driving profitable growth…
3-years since TCPL: driving profitable growth… Revenue – India Revenue – International Revenue – Consolidated 3Y CAGR 3Y CAGR 3Y CAGR 87.2 17% 35.9 3% 137.8 13% 32.6 54.0 96.4 FY20 FY23 FY20 FY23 FY20 FY23 Cons. EBITDA Cons. Group Net Profit EPS 3Y CAGR 3Y CAGR 3Y CAGR 18.7 13.2 13.0 38% 13% 42% 13.
Slide 26: …While unlocking efficiencies
…While unlocking efficiencies Net working capital days Dividend per share 50 ₹ 8.45 35 ₹ 2.70 FY20 FY23 FY20 FY23 Operating cash flow to EBITDA 99% FY23 closing net cash of INR 2,945 cr 92% Adequate resources to pursue value-creating organic and inorganic opportunities FY20 FY23 26 2626
Slide 27: Macro environment
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Slide 28: 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) 233 234 236 229 225 223 222 246 224 215 217 194 191 212 177 177 173 180 188 195 186 147 158 177 128 149 144 105 145 103 94 96 93 86 88 128 122 117 115 68
Slide 29: Market context – category growth rates (value)
Market context – category growth rates (value) US UK Canada India • US markets saw category growth in Coffee 14.5% (both Bags and K-cups) and Tea on account +8.3% of price increases. In volume terms, the category saw a decline. +7.3% +7.0% • UK – The tea category in both regular and F&H saw growth l
Slide 30: Business performance
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Slide 31: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter grew 1%, • TCPL retained market leadership in Tata Tea Premium Celebrated Utkala +1% with 3% volume growth, recording a sequential recovery from the 9% tea in the e-com channel for the 23rd consecutive month. Dibasa (Odisha Da
Slide 32: India Foods
India Foods Performance commentary • Tata Sampann continued its strong +26% • Salt revenue grew 24% during the quarter, on a high base of last year (Q4FY22 salt grew 15%). trajectory in Q4, growing 35%, bringing FY23 growth to 29%. Revenue Growth • For the year, salt grew 25%, • Salt margin is almos
Slide 33: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary • Nourishco had a landmark year, • Himalayan grew 74% during the 181Cr recording Rs 621 cr. in net sales for the year, up 80% YoY. quarter, profitably. Revenue* • The business recorded a strong • Despite steep inflation, continued revenue growth of
Slide 34: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary Extractions +13%# • Revenue for the quarter grew 13%# led by extractions business. This • Overall extractions business grew by 20% # during the quarter, bringing Revenue Growth brought FY23 revenue growth to FY23 growth to 26%
Slide 35: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 48% • The business was EBIT-positive for 22 YoY, bringing FY23 growth to 71%, albeit on a base that was impacted by the pandemic. the year. Continued momentum with Net new stores strong new city openings opened during the • Ad
Slide 36: International operations
International operations UK USA Canada • Revenue for the quarter grew 8%^ , bringing • Coffee revenue for the quarter declined 4%^ , • Revenue for the quarter grew 5%^ , bringing FY23 growth to flat^. bringing FY23 growth to 7%^. FY23 growth to 9%^. • Implemented ~15% price increases across the • US
Slide 37: Financial Performance
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Slide 38: Performance Highlights – Q4FY23
Performance Highlights – Q4FY23 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated Revenue at Rs 3,619 Crs 444 3,619 Revenue from 230 3,175 • India Business +15% operations 2,178 1,948 • International Business +6% (constant currency); on a like-to-like basis +1% (excluding acquisitions) +14% +
Slide 39: Financials: Consolidated
Financials: Consolidated Quarter ended Mar’23 Profit and Loss statement Financial year ended Mar’23 Q4FY23 Q4FY22 Change % (all nos. in ₹ Crores) FY23 FY22 Change % 3,619 3,175 14 % Revenue from operations 13,783 12,425 11 % 518 458 13 % EBITDA 1,874 1,749 7% 14.3 % 14.4% % 13.6 % 14.1 % 436 386 13
Slide 40: Financials: Standalone
Financials: Standalone Quarter ended Mar’23 Profit and Loss statement Financial year ended Mar’23 Q4FY23 Q4FY22 Change % (all nos. in ₹ Crores) FY23 FY22 Change % 2,178 1,948 12 % Revenue from operations 8,539 7,932 8% 352 288 22 % EBITDA 1,323 1,111 19 % 16.2 % 14.8 % % 15.5 % 14.0 % 314 253 24 % E
Slide 41: Segment-wise Performance Q4FY23
Segment-wise Performance Q4FY23 Particulars Segment Revenue Segment Results/PBT Revenue – Branded business ₹ Cr Q4 FY23 Q4 FY22 Change Q4 FY23 Q4 FY22 Change India Business 2,246 1,954 15% 312 258 21% 70% India Business International Business 984 890 11% 127 128 (1)% 30% International Business Total
Slide 42: Segment-wise Performance FY23
Segment-wise Performance FY23 Particulars Segment Revenue Segment Results/PBT Revenue – Branded business ₹ Cr FY23 FY22 Change FY23 FY22 Change India Business 8,717 7,914 10% 1,193 1,012 18% 71% India Business International Business 3,589 3,336 8% 380 478 (21)% 29% International Business Total Brand
Slide 43: Concluding remarks
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Slide 44: To conclude – FY23 in a nutshell
To conclude – FY23 in a nutshell Macros ▪ We have seen some green shoots in some of our salient markets for tea and remain cautiously optimistic going forward. ▪ The impact of inflation and monetary tightening on the economic growth and demand in our key International markets remains a monitorable.
Slide 45: Q&A
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Slide 46: Other
Slide 47: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st March, 2023 Stock data BSE Ticker 500800 Others 6% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (Mar 31, 2023) ₹ 659.6 bn Individual 34% 20% Number of Shares Outstanding 929.0 Mn MFs/ UTI/ AIFs 6% Insurance
Slide 48: 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
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