Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2022 Earnings Presentation
43 slides from Tata Consumer Products's earnings presentation, Aug 3, 2021
Slide 1: Investor Presentation
Investor Presentation For the quarter ended June 2021 3rd August 21
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 – Business performance India – International Financial performance Outlook
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 ₹ 11.6K crore consolidated Reach to almost 200mn revenue in FY21 with current households in India and market cap of ~₹70k Cr. di
Slide 5: Executive Summary
5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Executive Summary TATA CONSUMER PRODUCTS
Slide 6: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 11% YoY despite a challenging operating environment and a high base. Despite a severe second wave of COVID, India business performed well while International markets saw a decline owing to pantry loading in the base quarter. Overa
Slide 7: COVID-19 update - India
COVID-19 update - India Second wave vs first wave Business Continuity Supply Chain • Widespread impact across rural/hinterland • All factories and plantations were operational • Secured raw materials and packaging supply chains; Ongoing risk management to ensure supply continuity • More infections i
Slide 8: Performance Overview
5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Performance Overview TATA CONSUMER PRODUCTS
Slide 9: Key Businesses snapshot – Q1FY22
Key Businesses snapshot – Q1FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 1,267 705 296 472 241 3,008 Revenue Growth 28% 20% -18% -3% 5% 11% Constant currency growth -15% -10% 6% 10% V
Slide 10: Group Performance at a glance – Q1FY22
Group Performance at a glance – Q1FY22 ₹ 3,008 Cr. ₹ 403 Cr. ₹ 340 Cr. ₹ 200 Cr. ₹ 203 Cr. ~₹ 2,169 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 11% -17% -22% -42% -27% Margin% 13.4% 11.3% 6.7% 6.8% Margin expansion -452 bps -476 bps -608 bps -345
Slide 11: Progress against Strategic Priorities
5 OC OURO 5 © DR CN OO Cc Progress agains Strategic Priorities
Slide 12: 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 12
Slide 13: Fuelling our brands
Fuelling our brands Tata Tea Chakra Gold Care Driving awareness & trials of value added variant, Chakra Gold Care in TN India business1 A&P Q1FY22 +53% YoY Scale up and expansion in southern markets of AP, Telangana and Karnataka. Ongoing hyperlocal campaigns across all core markets for Tata Tea Pre
Slide 14: Making consistent gains on reach & premiumization
Making consistent gains on reach & premiumization Direct coverage On track for # Rural distributors1 as of Sep’20 as of Jun’21 by Sep’21 Pan-India Harmonized Distribution System Value growth in premium salts portfolio Ecommerce +153% YoY 7.3% of Sales2 Institutional channel +144% YoY 1 total number
Slide 15: Strong momentum post second wave of COVID
Strong momentum post second wave of COVID Urban direct outlets billed India F&B revenue growth (%) India F&B Volume growth (%) India Foods India Packaged Beverages 1.12 41 23 1.00 30 0.96 0.93 36 16 21 22 14 3 11 8 -7 MAR'21 APR'21 MAY'21 JUN'21 Q4FY21 APR'21 MAY'21 JUNE'21 Q4FY21 APR'21 MAY'21 JUNE
Slide 16: Embedding Digital across the value chain
Embedding Digital across the value chain Digital strategy Enterprise data platform Continued focus on and vision set-up initiated key business initiatives 16
Slide 17: Continuing the momentum on innovation - India
Continuing the momentum on innovation - India Tata Salt Tata Tea Eight O’Clock Tata Sampann Super Lite Chakra Gold Care Dal Tadka Masala New dust blend that packs A range of Premium International Range of Dal Tadka India's 1st and only salt the traditionally known Coffee offerings; with its Single M
Slide 18: Continuing the momentum on innovation – Intl.
Continuing the momentum on innovation – Intl. Himalayan - UK Teapigs Kombucha Teapigs Cold Brew Good Energy - Good Earth - UK UK UK Australia Himalayan Natural Water – Launch of 6 variants of Teapigs Organic Natural Energy Drink Good Earth launched in Launch of 3 variants of Teapigs Launch of our pr
Slide 19: Soulfull integration update
Soulfull integration update Key Highlights Organization structure and policies harmonized Ensured billing through TCPL within ~45 days of deal closure; 3x GT outlet expansion achieved Completed critical process integration across 10 functions within 90 days of deal closure Completed Sales IT and rel
Slide 20: Recent changes in the Leadership team
Recent changes in the Leadership team Mr. Prashant Parameswaran Mr. Puneet Das Ms. Deepika Bhan Managing Director & CEO President – Packaged ‘ President – Packaged Tata Consumer Soulfull Pvt. Ltd. Beverages(India and South Asia) Foods (India) Mr. T.V. Swaminathan Mr. Punit Gupta Global Chief Digital
Slide 21: Enhancing ESG disclosures
Enhancing ESG disclosures ESG reporting Introduction of an interactive tool on our website to enhance disclosures, reporting and ease of access. 21
Slide 22: Macro environment
5 OC OURO 5 6 SPREE Oc Macro environment
Slide 23: Macro and commodity overview
Macro and commodity overview Global GDP growth rates Commodity price trend Tea Prices Coffee Prices % 21.0 20.5 $c / KG 147 12.2 190 188 189 194 180 107 $c/ LB 5.4 272 96 2.1 4.6 2.3 3.3 4.0 1.6 219 215₹ / KG 0.3 0.5 194 2.0 -2.8 158 1.5 1.4 1.2 -2.4 0.4 $c/ LB -9.0 -2.2 -6.1 ₹ / KG 68 -7.4 -8.5 -7.
Slide 24: Market context – category growth rates
Market context – category growth rates US UK Canada India +28.4% • Regular black hot tea category continued to witness a decline in the US & Canada, owing to the pantry stocking effect in the base quarter. In the UK, regular black tea decline YOY slowed down from the previous quarter. • Non-black te
Slide 25: Business performance – India
5 OC OURO 5 6 SPREE Oc Business performance — India
Slide 26: India Packaged Beverages
India Packaged Beverages Performance commentary +24% • Revenue for the quarter grew • EBIT Margin for the segment 24%, with 3% volume growth, improved QoQ, however impacted by disruption caused by contracted YoY led by tea cost Revenue Growth second wave of COVID. inflation and increased A&P. • Coff
Slide 27: India Foods
India Foods Performance commentary +20% • Salt revenue grew 20% during the quarter, despite a high base. • Tata Sampann portfolio grew 12%, due to pantry loading in the base quarter, bringing the 2-year CAGR Revenue Growth to ~30%. • Continued to drive premiumization with Premium Salts portfolio gro
Slide 28: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary Sales as a % of PY 87Cr 186% 191% • Revenue grew 91% YoY bringing • Roll-out of Himalayan in the 2-year CAGR to 12%, despite Ecommerce and MT channels is the severe adverse impact of seeing good traction. 109% Revenue COVID on OOH consumption. 82% 6
Slide 29: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary +5%# • Revenue for the quarter grew 5% Extractions led by the extractions business, • Overall extraction business grew which helped offset the decline in 21%, with growth seen in both Revenue Growth coffee plantations. Vietnam and do
Slide 30: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 84% • While revenue for the quarter grew 371% on a depressed base of last year, it was still 61% indexed to • Continuous impetus on planning and executing various cost saving initiatives. Stores re-opened* Q1FY20 (baseline). • April and May performance was
Slide 31: Business performance - International
5 OC OURO 5 6 SPREE Oc Business performance - International
Slide 32: UK
UK Performance commentary -13% • Revenue for the quarter declined 11% (constant currency) owing to pantry up-stocking that led to 12% • Specialty OOH channel is seeing fast recovery. Revenue Growth^ growth in the base quarter last year. • Good Earth tea continues to attract younger consumers and Goo
Slide 33: USA
USA Performance commentary -15% • Coffee: Revenue for the quarter • Tea (excluding Empirical): Revenue declined 15% (constant currency), for the quarter declined 8% due to pantry loading that led to 26% (constant currency), on an elevated Coffee Revenue growth in the base quarter last year. base tha
Slide 34: Canada
Canada Performance commentary -25% • Revenue for the quarter declined 25% (constant currency), due to pantry loading that led to 32% • Continued strong performance of Tetley Super Teas range. Revenue Growth^ growth in the base quarter last year. • Tetley has gained market share*, both in regular and
Slide 35: Awards & Recognitions
Awards & Recognitions 1. Corporate 2. Manufacturing Governance Excellence Featured in the ‘Leadership’ category Nonoi Packaging Center won the as assessed by IiAS on the IFC- Silver in the India Green BSE-IiAS Indian Corporate Manufacturing Challenge amongst Governance Scorecard. the top manufacturi
Slide 36: Financial Performance
5 OC OURO 5 6 SPREE Oc Financial Performance
Slide 37: Highlights – for the quarter ended Jun'21
Highlights – for the quarter ended Jun’21 REVENUE: Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Group Revenue grew by 11% (10% in constant currency) Revenue from 294 3,008 operations 361 1,966 2,714 • India Beverages (including Nourishco) grew by 1,605 28%. +11% • India Foods grew by 20%. +22% • Tata
Slide 38: Financials: Standalone and Consolidated
Financials: Standalone and Consolidated Standalone Profit and Loss Statement Consolidated Q1FY22 Q1FY21 Change % (all nos. in ₹ Crores) Q1FY22 Q1FY21 Change % 1,966 1,605 22 % Revenue from operations 3,008 2,714 11 % 274 326 (16) % EBITDA 403 486 (17)% 13.9 % 20.3 % % 13.4 % 17.9 % 239 296 (19)% EBI
Slide 39: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q1 FY22 Q1 FY21 Change Q1 FY22 Q1 FY21 Change 46 % India beverages (%) (%) 26% India foods India Beverages 1,267 989 28% 151 212 (29)% 28 % International beverages India Foods 705 589 20% 96 115 (16)
Slide 40: Outlook
Slide 41: Outlook
Outlook Macros Second wave of COVID-19 in India is now receding and there seems to be a V-shaped recovery since second half of June. Our International markets (US, UK, Canada) are seeing a return to pre-COVID demand trends of packaged tea and coffee categories. Business With the second wave ab
Slide 42: Thank You
Thank You For more information Nidhi Verma For media queries Head – Investor Relations & Corporate Communication Satya Muniasamy nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com Write to us at investor.relations@tataconsumer.com Call us at +91-22-61218400 Last 10-year financials are ava
Slide 43: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th June, 2021 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (June 30, 2021) ₹695.2 bn 21% 35% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 9% Insurance
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