Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q3 FY2022 Earnings Presentation
45 slides from Tata Consumer Products's earnings presentation, Feb 2, 2022
Slide 1: Investor Presentation
Investor Presentation For the quarter and nine months ended December 2021 2nd February 2022
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 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 ₹ 11.6K crore consolidated Reach almost 200mn revenue in FY21 with current households in India and market cap of ~₹69k* Cr. dist
Slide 5: Executive Summary
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Slide 6: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 6% (ex International Foodservice business exits last year)– bringing 2-year CAGR to 13.4%. Overall, India business1 grew 6% led by o India Beverages2 business growth of 1%, with 6% volume growth o India Foods3 business growth of 16%
Slide 7: Performance Overview
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Slide 8: Key Businesses snapshot – Q3FY22
Key Businesses snapshot – Q3FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 1,278 732 343 553 284 3,208 Revenue Growth 1% 16% 7% -1% 34% 5%[ 6%] Constant currency growth 6% -5% 34% 4%[ 6
Slide 9: Key Businesses snapshot – 9MFY22
Key Businesses snapshot – 9MFY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 3,811 2,149 940 1,506 767 9,250 Revenue Growth 13% 19% -4% 0% 12% 8%[10%] Constant currency growth -3% -5% 12%
Slide 10: Group Performance at a glance – Q3FY22
Group Performance at a glance – Q3FY22 ₹ 3,208 Cr. ₹ 468 Cr. ₹ 401 Cr. ₹ 290 Cr. ₹ 300 Cr. ~₹ 1,891 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 5%[6%]# 28% 34% 22% 24% Margin% 14.6% 12.5% 9.0% 9.4% Margin expansion +270 bps +280 bps +130 bps +148
Slide 11: Group Performance at a glance – 9MFY22
Group Performance at a glance – 9MFY22 ₹ 9,250 Cr. ₹ 1,291 Cr. ₹ 1,105 Cr. ₹ 776 Cr. ₹ 802 Cr. ~₹ 1,891 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 8%[10%]# 3% 2% -9% -1% Margin% 14% 11.9% 8.4% 8.7% Margin expansion -67 bps -66 bps -161 bps -79 bp
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
Slide 14: Strengthening the core – India Packaged Beverages
Strengthening the core – India Packaged Beverages Chakra Gold became the co sponsor of Big Boss TN – biggest reality TV show in the state Tata Tea Chakra Gold new TVC is a toast to Tata Tea Agni relaunch - new Agni TVC with 3 ‘Ghanam’ taste of Andhra Pradesh and Telangana, Lead protagonists of India
Slide 15: Strengthening the core – India Foods
Strengthening the core – India Foods Tata Sampann Staples: Tata Salt Superlite Strengthened our leadership in new digital films branded Poha category on E- creating awareness Commerce channels by driving on BP management consumer upgradation and and lower sodium conversion to the larger pack intake
Slide 16: Continuing to focus on innovation – 1/2
Continuing to focus on innovation – 1/2 Tata Coffee Quick Tata Soulfull No Maida Shuddh by Tata Salt Tata Sampann Dry Filter Choco Ragi Bites Fruits Tata Sampann Dry Fruits offer Filter coffee like taste in an instant Ragi bites chocos now with no South first launch with a 100% Pure range of premium
Slide 17: Continuing to focus on innovation -2/2
Continuing to focus on innovation -2/2 1868 by Tata Tea Tata Tea Adrak Chai Tata Nature Alive Launched 8 new variants of 1868 Launched a new variant of Tata Tea Agni Launch of Mass Premium range of premium teas with adrak (ginger) Natural Mineral Water to complement our existing range 17
Slide 18: Another strategic addition to our portfolio – Tata Q
Another strategic addition to our portfolio – Tata Q In line with our strategic priority of exploring new opportunities for growth, TCPL acquired Tata SmartFoodz Ltd. (TSFL), the owner of the brand “Tata Q” in November’21. TCPL has gained access to state-of-the-art MATS technology and TSFL’s in-
Slide 19: Tata SmartFoodz integration update
Tata SmartFoodz integration update Key Highlights (Nov’21 – Jan’22) Sales & Operations Planning (S&OP) processes harmonized Integration of distribution network near completion – TCPL domestic & international network being leveraged Integrated organization structure completed; HR policies to be harmo
Slide 20: Network optimization
Network optimization Network optimization and operating model design for the foods 3P network Identify synergies with existing businesses & current expansion plans Balance across cost, service levels, responsiveness & reliability Define right balance between in-house vs outsourced operations and tri
Slide 21: Dynamically managing P&L
Dynamically managing P&L Inflationary pressures Still delivering improved EBITDA margins* QoQ Cost saving Pricing initiatives & Improved mix rationalization of discretionary spends Freight Packaging Energy & other key input costs + 14.6% Additional investment in our new businesses 13.9% 13.4% 10.4%
Slide 22: Key business contribution towards sustainability
Key business contribution towards sustainability Sustainability at Starbucks Project Jalodari Tata Starbucks embarks on building a sustainable future by taking meaningful steps and using the 3’R’s – Recycle, Reduce and Reuse Tata Consumer Products received ‘Jury Special Award’ under ‘Beyond the Fenc
Slide 23: Macro environment
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Slide 24: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 23.6 233$c / KG 220 $c/ LB 189 194 194 20.1 180 8.4 6.0 3.3 0.3 3.0 12.2 ₹ / KG 1.6 6.8 5.9 215 2.3 0.5 0.5 194 188 187 4.9 6.0 113 115 158 1.2 -9.1 -2.9 -2.3 $c/ LB -2.2 -7.4 -7.1 -8.1 -5.8 ₹ / KG
Slide 25: Market context – category value growth rates
Market context – category value growth rates US UK Canada India • Regular black tea category witnessed decline in the US and the UK. In Canada, Regular black tea saw a decline due to lapping a high base led by COVID induced pantry loading. • Non-black tea (Fruit & Herbal, Specialty, +10.1% Decaf, Co
Slide 26: Business performance – India Q3FY22
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Slide 27: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter declined • EBIT Margin for the segment has -1% 1%, despite a 6% volume growth driven by pricing. This brought 2- come back, expanding 1100bps YOY Revenue Growth year Revenue CAGR to 19% and 2-year Volume CAGR to 8%. • Coffee v
Slide 28: India Foods
India Foods Performance commentary • Revenue for the quarter grew 16%, • Tata Sampann portfolio grew +16% with a volume growth of 4%, bringing 2-year Revenue CAGR to strong double digits led by strong performance in pulses, besan and Revenue Growth1 poha. 17%. Launch of • Salt portfolio continued to
Slide 29: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) * 221% Performance commentary Sales as a % of PY 186% 191% 191% • Revenue for the quarter grew 91% • Himalayan water turned EBIT 72Cr bringing 2-year CAGR to 53%. positive, after breaking even last quarter. 109% Revenue 82% • The growth has been strong across • Several co
Slide 30: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary # Extractions +33% • Revenue for the quarter grew 33% as both extractions and • Overall extraction business grew 36%, despite challenges in shipping Revenue Growth plantations business grew and container availability. Tata Coffee’s J
Slide 31: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 60% • Added 13 new stores during the 94%* on a relatively low base; it grew 37% indexed to Q3FY20 (baseline). quarter and entered two new cities – Trivandrum and Siliguri. Stores reopened • Revenue saw strong recovery since •
Slide 32: Business performance – International
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Slide 33: UK
UK Performance commentary • Revenue for the quarter declined 4% • Specialty OOH and mainstream -4% (ex-Teapigs, constant currency) led by softness in everyday black OOH channels saw strong growth during the quarter. Revenue Growth^ category. • Tetley F&H (led by Supers), Teapigs • Teapigs declined 3
Slide 34: USA
USA Performance commentary • Coffee: Revenue for the quarter • Tea (ex Empirical): Revenue for the Range extension of Flavors of America platform with +6% grew 6% (constant currency), with growth across bags and K-cups. quarter was flat (constant currency) due to pantry stocking that led to introduc
Slide 35: Canada
Canada Performance commentary • Revenue for the quarter declined 2% • Tetley regular continued to gain Supporting Super -2% (constant currency) due to a high base last year (Q3FY21 was up share* outpacing the category. Revenue Growth^ Tea line with 24%). Regular tea grew 2%. integrated campaign incl
Slide 36: Awards & recognition
Awards & recognition 1. Best Corporate Website 2. Great Place to Work and Annual Report TCPL got recognized by the Great Place to Work which reinforces our Tata Consumer Products won the 4th efforts on a journey of building and edition of India Content Leadership sustaining a High-Trust and High- Aw
Slide 37: Financial Performance
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Slide 38: Highlights – for the quarter ended Dec'21
Highlights – for the quarter ended Dec’21 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: Growth in Topline, net of exits +6% (at constant Revenue from currency +6%), 67 138 3,208 operations 2,030 3,070 • India Branded Business +5% 1,963 • International Business flat, in constant currency terms
Slide 39: Financials: Standalone
Financials: Standalone Quarter ended Dec’21 Profit and Loss statement Year to date Dec’21 Q3FY22 Q3FY21 Change % (all nos. in ₹ Crores) 9M FY22 9M FY21 Change % 2,030 1,963 3% Revenue from operations 5,984 5,304 13 % 281 197 42 % EBITDA 823 777 6% 13.8 % 10.0 % % 13.8 % 14.6 % 245 165 49 % EBIT 717
Slide 40: Financials: Consolidated
Financials: Consolidated Quarter ended Dec’21 Profit and Loss statement Year to date Dec’21 Q3FY22 Q3FY21 Change % (all nos. in ₹ Crores) 9MFY22 9MFY21 Change % 3,208 3,070 5 %1 Revenue from operations 9,250 8,565 8 %2 468 365 28 % EBITDA 1,291 1,253 3% 14.6 % 11.9 % % 14.0 % 14.6 % 398 300 32 % EBI
Slide 41: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q3 FY22 Q3 FY21 Change Q3 FY22 Q3 FY21 Change 44 % India beverages (%) (%) 25% India foods India Beverages 1,278 1265 1% 220 77 185% 31 % International beverages India Foods 732 631 16% 43 93 (54)% I
Slide 42: Outlook
Slide 43: Outlook
Outlook Macros Third wave of COVID is underway in India, although it is less severe, some impact on business continues. We are hoping for a fast economic recovery this time, but Inflation remains a concern. The demand environment in our key International markets (US, UK, Canada) will remain vola
Slide 44: 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 45: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st December, 2021 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (Dec 31, 2021) ₹ 685.1 bn 35% 21% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 7% Insura
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