Tata Consumer Products Limited · NSE:TATACONSUM

Tata Consumer Products — Q2 FY22 Earnings Presentation

42 slides from Tata Consumer Products's earnings presentation, Oct 22, 2021

Slide 1: Cover letter to stock exchanges
October 22, 2021 The National Stock BSE Limited The Calcutta Stock Exchange of India Limited Corporate Relationship Exchange Limited st Exchange Plaza,5th floor Dept. 1 Floor, New 7 Lyons Range Plot No. C/1, G Block Trading Wing Kolkata 700 001 Bandra Kurla Complex Rotunda Building, Bandra (E) PJ To
Slide 2: Investor Presentation
Investor Presentation For the quarter and half year ended September 2021 22nd October 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 3
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 with current households in India and market cap of ~₹75k Cr. di
Slide 7: Executive Summary
Executive Summary  During the quarter, Consolidated Revenue grew 11% (ex International Foodservice business exits last year)– bringing 2-year CAGR to 14%.  Overall, India business1 grew 17% led by o India Beverages2 business growth of 14%, with 2% volume growth o India Foods business growth of 23%
Slide 9: Key Businesses snapshot – Q2FY22
Key Businesses snapshot – Q2FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated (unless specified) (incl. Vietnam) Revenue 1,266a 712 301 480b 242c 3,033d Revenue Growth 14% 23% 0% 5% -0% 9% [11%]e Constant currency growth 1% 0% 0% 8%
Slide 10: Key Businesses snapshot – H1FY22
Key Businesses snapshot – H1FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated (unless specified) (incl. Vietnam) Revenue 2,533a 1,417 597 952b 483c 6,042d Revenue Growth 21% 21% -9% 1% 2% 10% [11%] e Constant currency growth -8% -5%
Slide 11: Group Performance at a glance – Q2FY22
Group Performance at a glance – Q2FY22 ₹ 3,033 Cr. ₹ 420 Cr. ₹ 364 Cr. ₹ 286 Cr. ₹ 302 Cr. ~₹ 2,250 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 9% [11%] # 5% 5% 5% 4% Margin% 13.9% 12% 9.4% 10% Margin expansion -60 bps -40 bps -40 bps -50 bps (Y-o
Slide 12: Group Performance at a glance – H1FY22
Group Performance at a glance – H1FY22 ₹ 6,042 Cr. ₹ 823 Cr. ₹ 704 Cr. ₹ 486 Cr. ₹ 505 Cr. ~₹ 2,250 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 10% [11%]# -7% -10% -21% -11% Margin% 13.6% 11.7% 8.0% 8.4% Margin expansion -253 bps -257 bps -322 bps
Slide 14: 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 13
Slide 15: Investing behind our brands
Investing behind our brands India business1 A&P Q2FY22 +75% YoY Tetley launched its new TVC for the immune Tata Tea Chakra Gold Care new TVC –’ Tamizh Kanan Devan new TVC coupled with localized range driving the key message of – stay fit from Way of Care’ in Tamil Nadu has been widely print support
Slide 16: On track for the next leg of growth
On track for the next leg of growth Direct coverage Total reach General Trade – Urban outlets Sep’20 Sep’21 Premium DSR Programme 2 Sep’21 by FY22 exit Q2 FY22 Channel metrics Nourishco # outlets General Trade – Rural Ecommerce +39% YoY ~7% of Sales2 +49% YoY Sep ‘21 Vs. Sep ‘20 Rural distributors I
Slide 17: Continuing the momentum on innovation
Continuing the momentum on innovation Tata Coffee Sonnets TGP Jelly drink Tetley-UK Tata Soulfull – Millet Muesli Added new season coffees from Slurpable jelly-based drink. Tetley joins Loop – New reusable Soulfull 0% added sugar Millet Muesli 12 estates as range extension Unique product combination
Slide 18: A step forward in our sustainability journey
A step forward in our sustainability journey For a better planet For better communities Tetley UK signed up on a new unique In our bid to empower women, Tata reuse packaging platform called Loop Consumer Products partnered with to eliminate single use packaging by Tata Trusts for Menstrual Hygiene o
Slide 19: Recognition of our sustainability efforts
Recognition of our sustainability efforts Rated “A” by MSCI ESG ratings Sustainalytics upgraded TCPL’s ESG TPCL is amongst the top scoring FMCG risk rating from Severe to Medium in companies in CRISIL India’s ESG Report their last update. which factors best in class Environmental, Social & Governanc
Slide 20: Macro environment
5 OC OURO 5 6 SPREE Oc Macro environment
Slide 21: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 23.6 $c / KG 180 $c/ LB 189 194 194 20.1 188 180 7.7 4.6 2.3 3.3 12.2 115 0.3 3.0 1.6 272 215 ₹ / KG 2.1 0.5 0.5 5.3 194 188 101 158 1.4 1.2 -9.1 -2.9 -2.3 $c/ LB -2.2 -7.4 -7.1 -8.1 -5.8 163 ₹ / KG
Slide 22: Market context – category growth rates
Market context – category growth rates US UK Canada India • Regular black tea category saw a decline in key markets, however the decline was much lower than the previous quarter as +19.4% the pantry stocking effect in the base period tapers off. • Non-black tea (Fruit & Herbal, Specialty, Decaf, Col
Slide 23: Business performance – India Q2FY22
5 OC OURO 5 6 SPREE Oc Business performance — India Q2FY22
Slide 24: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter grew • EBIT margin for the segment has +10% 10%, with a 2% volume growth on an elevated base that saw 12% been on an upward trajectory since last quarter, led by tea inflation Revenue Growth volume growth. tapering off and des
Slide 25: India Foods
India Foods Performance commentary +23% • Revenue for the quarter grew 23%, • Tata Sampann portfolio grew 29%, with a strong volume growth of on a strong base last year. 16%. Revenue Growth • Salt continued its strong growth • EBIT margin for the quarter was trajectory with revenue growth of impacte
Slide 26: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) * 221% Performance commentary Sales as a % of PY • Revenue for the quarter grew 84Cr 186% 191% • Himalayan water business recorded 121% bringing the 2-year CAGR to breakeven for the quarter 35%. 109% Revenue • Tata Water Plus has now been 82% • Indexed to Q2FY20 baseline
Slide 27: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary Flat # Extractions • Revenue for the quarter was flat • Overall extraction business grew as extractions business growth 16%, primarily led by domestic Revenue Growth offset the decline in plantations. instant coffee business despite
Slide 28: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 88% • Revenue for the quarter grew 128% • Added 14 new stores during the on a relatively low base; it grew 23% indexed to Q2FY20 (baseline). quarter and entered one new city – Jaipur. Stores reopened Starbucks • Revenue has been on an upward • Easing of res
Slide 29: Business performance – International
5 OC OURO 5 6 SPREE Oc Business performance - International
Slide 30: UK
UK Performance commentary +1% • Revenue for the quarter grew 1% (ex- • Digital hub to focus on ecommerce, Teapigs, constant currency) lapping a including D2C is progressing well. strong base quarter that saw 4% Revenue Growth^ revenue growth last year. • Tetley continues to gain share in Fruit • Spe
Slide 31: USA
USA Performance commentary • Coffee: Revenue for the quarter +1% • Tea (ex Empirical): Revenue for the grew 1% (constant currency), in quarter declined 12% (constant line with overall category growth. currency) due to pantry stocking that Coffee Revenue led to 11% growth in the base Growth^ • Retail
Slide 32: Canada
Canada Performance commentary -1% • Revenue for the quarter declined 1% (constant currency) led by category softness and a high base in specialty • Tetley gained share* led by regular tea outpacing the category and specialty tea growing in line Revenue Growth^ tea last year. with the category. Suppo
Slide 33: Awards & recognition
Awards & recognition 1. Best use of 2. Creating Value consumer insights TCPL received the award for Best Growth Performance – F&B at India’s Tata Tea Kanan Devan won Gold top 500 Companies 2021 conference by for the best use of consumer Dun & Bradstreet on the theme of insights & analytics at Indian
Slide 34: Financial Performance
5 OC OURO 5 6 SPREE Oc Financial Performance
Slide 35: Highlights – for the quarter ended Sep'21
Highlights – for the quarter ended Sep’21 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: Revenue from 252 Growth in Topline, net of exits, +11% (at constant 3,033 operations 252 2,781 currency +11%), 1,988 1,736 • India Beverages (including NourishCo) grew by 14%. +9% [11%]# • India Foods grew
Slide 36: Financials: Standalone
Financials: Standalone Quarter ended Sep’21 Profit and Loss statement Year to date Sep’21 Q2FY22 Q2FY21 Change % (all nos. in ₹ Crores) H1 FY22 H1 FY21 Change % 1,988 1,736 14% Revenue from operations 3,953 3,342 18 % 269 254 6% EBITDA 543 579 (6)% 13.5 % 14.6 % % 13.7 % 17.3 % 233 223 4% EBIT 472 5
Slide 37: Financials: Consolidated
Financials: Consolidated Quarter ended Sep’21 Profit and Loss statement Year to date Sep’21 Q2FY22 Q2FY21 Change % (all nos. in ₹ Crores) 1HFY22 1HFY21 Change % 3,033 2,781 9 %# Revenue from operations 6,042 5,495 10 % 420 402 5% EBITDA 823 888 (7)% 13.9 % 14.4 % % 13.6 % 16.2 % 351 339 3% EBIT 687
Slide 38: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q2 FY22 Q2 FY21 Change Q2 FY22 Q2 FY21 Change 46 % India beverages (%) (%) 26% India foods India Beverages 1,266 1108 14% 170 145 17% 28 % International beverages India Foods 712 580 23% 75 93 (19)%
Slide 39: Outlook
Slide 40: Outlook
Outlook Macros  Second wave of COVID-19 in India has receded and vaccination is progressing at pace, leading to fast recovery of the economy.  Our International markets (US, UK, Canada) are seeing a return to pre-COVID demand trends of packaged tea and coffee categories. Business  We continue to
Slide 41: 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 42: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th September, 2021 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (Sep 30, 2021) ₹749.7 bn Individual 35% 21% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 8% Insura

Tata Consumer Products — Q2 FY22 Earnings Presentation on 6ix

Tata Consumer Products — Q2 FY22 Earnings Presentation

Slide 1: Cover letter to stock exchanges

Slide 2: Investor Presentation

Slide 3: Disclaimer

Slide 4: Agenda

Slide 5: We are Tata Consumer Products

Slide 6: Executive Summary

Slide 7: Executive Summary

Slide 8: Performance Overview

Slide 9: Key Businesses snapshot – Q2FY22

Slide 10: Key Businesses snapshot – H1FY22

Slide 11: Group Performance at a glance – Q2FY22

Slide 12: Group Performance at a glance – H1FY22

Slide 13: Progress against Strategic Priorities

Slide 14: Strategic Priorities

Slide 15: Investing behind our brands

Slide 16: On track for the next leg of growth

Slide 17: Continuing the momentum on innovation

Slide 18: A step forward in our sustainability journey

Slide 19: Recognition of our sustainability efforts

Slide 20: Macro environment

Slide 21: Macro and commodity overview

Slide 22: Market context – category growth rates

Slide 23: Business performance – India Q2FY22

Slide 24: India Packaged Beverages

Slide 25: India Foods

Slide 26: NourishCo (100% Subsidiary)

Slide 27: Tata Coffee (inc Vietnam) (~58% Subsidiary)

Slide 28: Tata Starbucks (JV)

Slide 29: Business performance – International

Slide 30: UK

Slide 31: USA

Slide 32: Canada

Slide 33: Awards & recognition

Slide 34: Financial Performance

Slide 35: Highlights – for the quarter ended Sep'21

Slide 36: Financials: Standalone

Slide 37: Financials: Consolidated

Slide 38: Segment-wise Performance

Slide 39: Outlook

Slide 40: Outlook

Slide 41: Thank You

Slide 42: Shareholding information