Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q3 FY24 Earnings Presentation
43 slides from Tata Consumer Products's earnings presentation, Feb 7, 2024
Slide 1: Exchange filing cover letter
February 7, 2024 National Stock Exchange of India BSE Limited The Calcutta Stock Limited Phiroze Jeejeebhoy Towers Exchange Limited Exchange Plaza, C-1, G Block Dalal Street 7 Lyons Range Bandra Kurla Complex, Bandra (E) Mumbai 400001 Kolkata 700 001 Mumbai 400 051 Scrip Code – 10000027 Scrip Code –
Slide 2: Investor Presentation for the quarter ended December 2023
Investor Presentation For the quarter ended December 2023 7th February 2024
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 Financial performance Concluding remarks Other 33
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 ₹ 13.8K crore consolidated Reach of 200mn+ Largest salt brand in India 2nd Largest tea brand 3rd largest tea brand in UK #1 natu
Slide 6: Executive Summary
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Slide 7: Executive Summary
Executive Summary ▪ We delivered yet another strong quarter with consolidated revenue growth of 9% (8% constant currency) driven by growth across all our businesses. This brought the 4-year revenue CAGR to 11% in Q3FY24. During the quarter: o India Beverages1 grew 8%, with tea volumes growing 2% YoY
Slide 8: Performance Overview
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Slide 9: Key Businesses Snapshot – Q3FY24
Key Businesses Snapshot – Q3FY24 In ₹ Cr India India US Coffee International Tata Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 1,311 1,062 357 671 376 3,804 Revenue growth 8% 13% -6% 22% [12%]* 3% 9% [8%]* Constant currency growth -8% 16% [5%]* 3% 8% [7%]* Volu
Slide 10: Key Businesses Snapshot – 9MFY24
Key Businesses Snapshot – 9MFY24 In ₹ Cr India India US Coffee International Tata Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 4,092 3,161 1,071 1,802 1,064 11,279 Revenue growth 9% 17% -4% 21% [9%]* 6% 11% [9%]* Constant currency growth -8% 16% [3%]* 4% 10% [8
Slide 11: Summary of Group Performance – Q3FY24
Summary of Group Performance – Q3FY24 ₹ 3,804 Cr. ₹ 576 Cr. ₹ 513 Cr. ₹ 372 Cr. ₹ 302 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 9% [8%] 26% 27% 31% -17% Margin 15.1% 13.5% 9.8% 7.9% Margin expansion (YoY) 190bps 190bps 160bps -260bps EP
Slide 12: Summary of Group Performance – 9MFY24
Summary of Group Performance – 9MFY24 ₹ 11,279 Cr. ₹ 1,692 Cr. ₹ 1,513 Cr. ₹ 1,088 Cr. ₹ 1,003 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 11% [10%] 25% 29% 23% -3% Margin 15.0% 13.4% 9.7% 8.9% Margin expansion (YoY) 170bps 180bps 100bps
Slide 13: Progress against Strategic Priorities
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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 13
Slide 15: Deepening our reach; alternate channels continue to fire
Deepening our reach; alternate channels continue to fire 3.9m (Dec’23) Modern Trade Total Reach Sampann + Soulfull revenue growth (9MFY24) Direct Reach New SKUs on shelf (9MFY24) 1.5m (Dec’23) E-commerce ✓ Post stabilization, we are seeing higher throughput in towns 9MFY24 revenue growth where we im
Slide 16: India Business – Powering our brands
India Business – Powering our brands Q3FY24 A&P-to-Sales (India Branded Business) 6.9% MAT Market share – Tea Tata Coffee Grand partnered with TN rap artist Arivu to Tata Coffee Grand is the special partner of launch the ‘Kaapi Pattu’ song celebrating Volume -20 bps1 Koffee with Karan Season 8 Tamil
Slide 17: Driving premiumisation through innovation
Driving premiumisation through innovation Sonnets easy pour coffee Sonnets spices & honey Dry fruit range extension Black salt / Kala namak Cold brew coffee cans 16
Slide 18: Momentum continues in the existing Engines of growth
Momentum continues in the existing Engines of growth Growth Businesses as a % of India Branded Business 17% 15% 13% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 Q3'23 Q3'24 Q3FY24 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, the RTE/RTC business (Tata Smartfooz). Ta
Slide 19: Adding new Engines of growth
Adding new Engines of growth Acquisition of Capital Foods Acquisition of Organic India Massive potential to drive synergies by leveraging Tata Consumer’s distribution network, increasing scale along with scope to deliver significant operating efficiencies For further details on these acquisitions, p
Slide 20: Fast tracking integration & synergies using our playbook
Fast tracking integration & synergies using our playbook We are here First primary Within Goods billing Complete Transaction Transaction transferred 100 12 Jan announced 1 Feb Closed 2 Feb to TCPL’s 3 Feb with first Organizational secondary days of integration CFAs Closing on same day Front-end sale
Slide 21: Macro environment
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Slide 22: 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) 246 236 233 229 234 225 223 222 224 217 208 208 210 195 185 212 177 173 174 195 197 195 156 186 151 177 180 149 119 122 120 144 105 103 94 96 93 88 128 1
Slide 23: Market context – category growth rates (value)
Market context – category growth rates (value) +12.0% +9.0% 4.8% 4.3% 3.2% +0.6% -1.2% -2.3% US Regular Black Tea UK Regular Black Tea Canada Regular Black Tea India Branded Tea US Bags Coffee UK Fruit & Herbals Tea Canada Speciality Tea US K-cup Coffee Source: Nielsen: 12 weeks (Value) – Dec’23 22
Slide 24: Business performance
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Slide 25: India Packaged Beverages
India Packaged Beverages Tata Tea Premium’s hyperlocal Performance commentary strategy extends with the launch • Revenue for the quarter grew 4%, with 2% volume growth, recording of Madhya Pradesh packs. +4% the fourth consecutive quarter of positive volume growth. Revenue Growth • This brings the 4
Slide 26: India Foods
India Foods Our new campaign, Performance commentary ‘Purer than a 100 Salts’, showcases the superior • Salt revenue grew 6% during the quarter, driven by a volume growth quality and purity of Tata Salt. +13% of 5% and premiumization. This brings the 4-year revenue CAGR of salt to 16%. Revenue Growt
Slide 27: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary • NourishCo recorded a revenue growth of 34% during the quarter, this 159Cr brings 9MFY24 growth to 41%. Revenue • Both, Value business (Tata Gluco+ and Tata Copper+) as well as Premium business (Himalayan) grew strongly during the quarter. • Profit
Slide 28: Tata Coffee (inc Vietnam ex EOC)
Tata Coffee (inc Vietnam ex EOC) Performance commentary +3%# • Revenue for the quarter grew 3%# led by the plantations business. Revenue Growth • The plantations business recorded a revenue growth of 44%, primarily led by higher coffee realizations. • Overall revenue for the extractions business dec
Slide 29: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 7%, bringing YTD growth to 14%. Both JV partners have high conviction in the huge potential India 22 • Added 22 net new stores during the quarter taking net new stores Net new stores added to 59 in 9MFY24. We also entered 6 ne
Slide 30: International operations
International operations UK USA Canada ➢ Revenue for the quarter grew 14% in CC ➢ Coffee revenue for the quarter declined 8% ➢ Revenue for the quarter was flat YoY. terms (reported revenue growth of 24%). in CC terms (reported revenue decline of 6%). ➢ The ethnic portfolio continued to gain ➢ Teapig
Slide 31: Financial Performance
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Slide 32: Performance Highlights – Q3FY24
Performance Highlights – Q3FY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 9% (8% in constant currency terms) to Rs 3,804 Crs. 199 2,352 329 3,804 Revenue from 2,153 3,475 • Our India business grew 10%. operations • Constant currency (CC) growth in the international busine
Slide 33: Performance Highlights – 9MFY24
Performance Highlights – 9MFY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 11% (10% in constant currency) to Rs 11,279 Crs. 1,114 11,279 Revenue from 667 7,028 10,164 • Our India business grew 12%. 6,361 operations • Constant currency (CC) growth in the international busin
Slide 34: Financials: Consolidated
Financials: Consolidated Quarter ended Dec’23 Profit and Loss statement Year-to-date Dec’23 Q3FY24 Q3FY23 Change % (all nos. in ₹ Crores) 9MFY24 9MFY23 Change % 3,804 3,475 9% Revenue from operations 11,279 10,164 11 % 576 458 26% EBITDA 1,692 1,356 25 % 15.1 % 13.2% % 15.0% 13.3% 490 383 28% EBIT 1
Slide 35: Financials: Standalone
Financials: Standalone Quarter ended Dec’23 Profit and Loss statement Year-to-date Dec’23 Q3FY24 Q3FY23 Change % (all nos. in ₹ Crores) 9MFY24 9MFY23 Change % 2,352 2,153 9% Revenue from operations 7,028 6,361 10% 409 328 25% EBITDA 1,152 971 19% 17.4% 15.2% % 16.4% 15.3% 368 292 26% EBIT 1,031 863
Slide 36: Segment-wise Performance Q3FY24
Segment-wise Performance Q3FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q3 FY24 Q3 FY23 Change Q3 FY24 Q3 FY23 Change India Business 2,375 2,165 10% 368 300 23% 70% India Business International Business 1,028 930 11% 109 88 23% 30% International Business Total Bra
Slide 37: Segment-wise Performance 9MFY24
Segment-wise Performance 9MFY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr 9M FY24 9M FY23 Change 9M FY24 9M FY23 Change India Business 7,257 6,470 12% 1,028 881 17% 72% India Business International Business 2,873 2,605 10% 320 253 27% 28% International Business Tota
Slide 38: Concluding remarks
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Slide 39: To conclude
To conclude Macros ▪ We have seen stable demand trends in India business and remain cautiously optimistic. ▪ Branded coffee category saw decline in the US, a key International market. UK tea category saw growth led by pricing. Business ▪ In Q3FY24, we have delivered another strong quarter of top lin
Slide 40: Q&A
Q&A TATA CONSUMER PRODUCTS P SOUL Nutri rit COLD COFFEE TATA Py SOULFULL PREMIUM. Joyfull #
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Slide 42: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 19th January 2024 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group 34% Market Capitalization (Jan 19, 2024) ₹ 1,106.9 bn 19% Number of Shares Outstanding 952.8 Mn MFs/ UTI/ AIFs 7% Insuran
Slide 43: 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
Tata Consumer Products — Q3 FY24 Earnings Presentation on 6ix