Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2023 Earnings Presentation
46 slides from Tata Consumer Products's earnings presentation, Aug 10, 2022
Slide 1: Investor Presentation
Investor Presentation For the quarter ended June 2022 10th August 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 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 ₹ 12.4K crore consolidated Reach north of 200mn revenue in FY22 with current households in India and market cap of ~₹74k* Cr dis
Slide 5: Executive Summary
) CO ORRIN SC CC Executive Summary TATA CONSUMER PRODUCTS
Slide 6: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 11% YoY (10% constant currency), despite a challenging macro environment. On a 3-year CAGR basis, this translates to ~12% revenue growth. Consolidated EBITDA for the quarter grew 14% (13% constant currency), with EBITDA margin at 13
Slide 7: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 8: 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 8
Slide 9: Key Businesses snapshot – Q1FY23
Key Businesses snapshot – Q1FY23 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tata Coffee (incl. Consolidated (unless specified) Tea Vietnam) Revenue 1,309 836 356 481 302 3,327 Revenue Growth 3% 19% 20% 2% 25% 11% Constant currency growth 15% 4% 24% 10% Volume
Slide 10: Group Performance at a glance – Q1FY23
Group Performance at a glance – Q1FY23 ₹ 3,327 Cr. ₹ 460 Cr. ₹ 403 Cr. ₹ 277 Cr. ₹ 295 Cr. ~₹ 1,896 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 11%[10%] 14% 19% 38% 45% Margin% 13.8% 12.1% 8.3% 8.9% Margin expansion +40 bps +80 bps +170 bps +210 b
Slide 11: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 12: Making consistent progress on reach
Making consistent progress on reach Strong impetus on Direct & Indirect reach Alternate channels fuelling Growth and Innovation agenda 0.6M Mar’22 By Mar’23 +35% YoY Direct reach Wholesale outlet direct coverage Modern Trade E-commerce continues to be a strong pillar & testing ground for NPDs 8.2% o
Slide 13: Powering our brands – India Packaged Beverages
Powering our brands – India Packaged Beverages Tetley celebrated Tata Tea Gold International Day of celebrated Mother’s Action for Women’s day in a unique way Health by collaborating through print ad with with Leading a scannable QR nutritionist Kavita code to create Devgan, urging personalized wish
Slide 14: Powering our brands – India Foods
Powering our brands – India Foods Tata Sampann latest TVC with Manoj Bajpayee builds awareness about Tata Sampann Haldi which has essential oils intact and is sourced from the choicest farms to meet the taste and enhances food experience Tata Salt latest campaign ‘Sacchai Shuddhta Ki’ drives salienc
Slide 15: Fueling the innovation funnel
Fueling the innovation funnel Tata Sampann spices Tata Coffee Cold Coffee Liquid Tata ORS+ Tetley Cold Brew Concentrate Pure spices- Chilies, Turmeric and A first-of-its-kind liquid coffee Launch of ORS + with Glucose and Launch of the new Tetley Cold brew – Coriander for the South India concentrate
Slide 16: Enhancing the healthy snacking portfolio
Enhancing the healthy snacking portfolio Tata Soulfull is on a mission to bring ancient Indian super grains such as millets to the forefront by making ‘Taste first, health forward’ products that are relevant to today’s consumers. Tata Soulfull is our brand for breakfast cereals, mini meals, and snac
Slide 17: Extending Himalayan into a provenance brand
Extending Himalayan into a provenance brand Capitalizing on the brand equity of Himalayan to increase its total addressable market Extending Himalayan into newer spaces Premium & authentic products sourced from the Himalayan belt Himalayan preserves are handmade in small batches, from Himalayan-
Slide 18: A look at our F&B platforms
A look at our F&B platforms Current core Pantry platform Liquids platform Mini-meals platform Horizon 3 Tea, Coffee Pulses, spices Water Breakfast cereals Protein platform Salt Besan, poha, other staples RTDs RTEs RTCs Snacks Dry Fruits 1818
Slide 19: Horizon 3 – Protein platform
Horizon 3 – Protein platform Globally, Plant-Based Meat (PBM)/Alt It is also a growing opportunity in India protein is a big trend with the market with the market expected to reach expected to reach USD 25bn by 20301 USD 300-500mn by 20252 Globally 3 considerations are driving the purchase of PBM am
Slide 20: New engines of growth
New engines of growth YoY Revenue growth – Q1FY23 20
Slide 21: Striving towards a sustainable future
Striving towards a sustainable future Our sustained efforts have enabled us to becoming one of KDHP – an associate company of the highest –scoring FMCG TCP has received Carbon Neutral companies in CRISIL Certification and Negative Emission Sustainability Yearbook 2022, status by Nansen Environmental
Slide 22: Sustainability Strategy
Sustainability Strategy TCPL’s sustainability strategy draws learnings from several sources to strengthen the existing foundation of TCPL’s sustainability agenda Global Industry • Adopt UN Sustainable Development Goals • Materiality analysis, sectoral (SDGs) trends, peer analysis Organizational Regu
Slide 23: Sustainability Strategy
Sustainability Strategy 1. 100% Critical Supplier assessments across 1. Increasing the reach of our product portfolio from all geographies by 2030 200Mn households to 250 Mn by 2030 2. 100% Sustainably sourced critical raw 2. 100% Sustainable products by volume by 2040 materials by 2040 1. Net Zero
Slide 24: Macro environment
) CO ORRIN SC CC Macro environment
Slide 25: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 233 247 230 24.5 $c / KG 226 $c/ LB 14.6 194 20.1 180 8.4 8.7 6.6 ₹ / KG 147 2.5 12.2 215 212 0.7 6.9 3.5 2.6 0.5 4.9 5.5 5.4 188 187 4.1 107 -9.1 -2.9 -2.3 -0.9 149 $c/ LB -6.6 -6.3 -7.7 -5.0 ₹ / K
Slide 26: Market context – category growth rates
Market context – category growth rates US UK Canada India • Regular black tea category grew in US and UK, rebounding from the declines it saw in the previous quarter, while it declined marginally in Canada. • Non-black tea (Fruit & Herbal, Specialty, Decaf, Cold Infusions, etc.) saw a decline in the
Slide 27: Business performance – India
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance — India
Slide 28: India Packaged Beverages
India Packaged Beverages Performance commentary Tata Tea TeaVeda -4% • Revenue for the quarter declined 4% on an elevated base that saw 24% revenue growth same period • Margin for India Beverages expanded YOY, despite increased A&P, helped by lower tea costs restaged in line with Revenue Growth simp
Slide 29: India Foods
India Foods Performance commentary 19% • Salt revenue grew 20% during the quarter despite a high base (Q1FY22 salt grew 20%). • Tata Sampann portfolio grew 6% during the quarter, led by short-term impact of trade terms/margin Revenue Growth rationalization/realignment across channels and pullback ah
Slide 30: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) 221% 186% 191% 191% 210% Performance commentary Sales as a % of PY 183Cr 151% • Delivered strong revenue growth of • Himalayan grew 246% YOY and 110% during the quarter. Adjusted was EBIT+ve during the quarter. 109% 82% for COVID-led disruption, the 3-year 64% Revenue CAG
Slide 31: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +25%# Extractions • Revenue for the quarter grew 25% • Overall extraction business grew 26% led by strong growth across both driven by both domestic and Vietnam Revenue Growth the extractions and coffee business, led by peak u
Slide 32: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 99% • Revenue saw strong growth of 238% on a low comparator, led by normalized store operations with • Opened 7 new stores and entered 4 new cities during the quarter. Stores re-opened* lower restrictions. • The business was EBIT positive for the quarter. •
Slide 33: Business performance – International
0 OOO Ss 5 2 OCR SO Business performance - International
Slide 34: UK
UK Performance commentary +3% • Revenue for the quarter grew 3% (constant currency) driven by Tetley black and Teapigs. • Tetley continued to gain share in everyday black and specialty Revenue Growth# segments. • Teapigs grew 16%, led by strong • Inflation continues to be a challenge performance in
Slide 35: USA
USA Performance commentary 15% • Coffee: Revenue for the quarter • Tea: Revenue declined 11% grew 15% (constant currency) driven (constant currency) due to softness by strong volumes in K-cups and in the category Coffee Revenue price increase. Growth^ • EOC (K-cups and Bags) saw share • Teapigs emer
Slide 36: Canada
Canada Performance commentary 14% • Revenue for the quarter grew 14% (constant currency) led by both volume growth and pricing. • EBIT grew significantly driven by a combination of higher sales, and lower discretionary spends Revenue Growth^ • There was strong revenue growth across both Regular blac
Slide 37: Financial Performance
0 OOO Ss e © 6© ©~ & 8 . S * ee Financial Performance
Slide 38: Performance Highlights - Q1FY23
Performance Highlights - Q1FY23 Standalone Consolidated REVENUE: (in ₹ Cr) (in ₹ Cr) • Revenue at Rs 3,327 Crs 319 3,327 3,008 Revenue from 111 2,077 • India Business +9% 1,966 operations • International Business +8% (constant +11% [10%] currency) +6% • Non-branded Business +25% (constant currency)
Slide 39: Financials: Standalone and Consolidated
Financials : Standalone and Consolidated Standalone Profit and Loss statement Consolidated Q1FY23 Q1FY22 Change % (all nos. in ₹ Crores) Q1FY23 Q1FY22 Change % 2,077 1,966 6% Revenue from operations 3,327 3,008 11 % 307 274 12 % EBITDA 460 403 14 % 14.8 % 13.9 % % 13.8 % 13.4 % 272 239 14 % EBIT 387
Slide 40: Segment-wise Performance Q1FY23
Segment-wise Performance Q1FY23 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q1 FY23 Q1 FY22 Change Q1 FY23 Q1 FY22 Change 72% India Business (%) (%) 28% International Business India Business 2,145 1,972 9% 273 247 11% International Business 837 768 9% 104 96 9% Total
Slide 41: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 42: To conclude
To conclude Macros Broad-based inflation continues to be a challenge across markets– however, its impact would vary across product categories/consumers/regions. The impact of inflation and monetary tightening on the economies of our major markets is a key monitorable. Business We continue to s
Slide 43: Other
Slide 44: Awards & recognition
Awards & recognition Most Valuable Brand Creating Value TCP rated as India’s 4th most valuable TCP recognized for Growth Performance Indian brand (F&B category) in the Brand (F&B category) at Dun & Bradstreet Finance India 2022 Report. Corporate Awards 2022. Communication Excellence ET Shark Awards
Slide 45: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th June, 2022 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (June 30, 2022) ₹ 651.8 bn 21% 35% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 6% Insurance
Slide 46: Thank You
Thank You For more information Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Retail investor - Write to us at investor.relations@tataconsumer.com Call us at +91-22-61218400 For media queries satya.muniasamy@tataconsumer.com Last 10-year financials are a
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