Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q4 FY24 Earnings Presentation
47 slides from Tata Consumer Products's earnings presentation, Apr 23, 2024
Slide 1: Investor Presentation
Investor Presentation For the quarter and fiscal year ended March 2024 23rd April 2024
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 Financial performance Concluding remarks Other 33
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 ₹ 15.2K crore consolidated Reach of 263mn+ Largest salt brand in India 2nd Largest tea brand 3rd largest tea brand in UK #1 natu
Slide 5: Executive Summary
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Slide 6: Executive Summary
Executive Summary ▪ Consolidated revenue growth was 9% in Q4FY24 (8% constant currency). During the quarter, o India Beverages1 grew 3%, with flat tea volumes YoY. o India Foods2 continued its strong trajectory, with revenue up 20% including Capital Foods (11% on a like-for-like (LFL) basis). LFL vo
Slide 7: Performance Overview
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Slide 8: Key Businesses Snapshot – Q4FY24
Key Businesses Snapshot – Q4FY24 In ₹ Cr India India US Coffee International Non-Branded Consolidated (unless specified) Beverages Foods Tea* Revenue 1,324 1,153 388 665 402 3,927 Revenue growth 3% 20% [11%]* 3% 9% 4% 9% [6%]* Constant currency growth 2% 6% 4% 8% [5%]* Volume growth 0% 5% [4%]* 6% -
Slide 9: Key Businesses Snapshot – FY24
Key Businesses Snapshot – FY24 In ₹ Cr India India US Coffee International Non-Branded Consolidated (unless specified) Beverages Foods Tea* Revenue 5,415 4,315 1,459 2,466 1,577 15,206 Revenue growth 7% 18% [15%]* -2% 17% [10%]* 5% 10% [8%]* Constant currency growth -5% 13% [4%]* 4% 9% [7%]* Volume
Slide 10: Summary of Group Performance – Q4FY24
Summary of Group Performance – Q4FY24 ₹ 3,927 Cr. ₹ 631 Cr. ₹ 509 Cr. ₹ 427 Cr. ₹ 212 Cr. ₹ 118 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 9% [8%] 22% 12% 46% -27% Margin 16.1% 13.0% 10.9% 5.4% Margin expansion (YoY) 180bps 40bps 280bps -260bps EPS
Slide 11: Summary of Group Performance – FY24
Summary of Group Performance – FY24 ₹ 15,206 Cr. ₹ 2,323 Cr. ₹ 2,023 Cr. ₹ 1,516 Cr. ₹ 1,215 Cr. ₹ 118 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 10% [9%] 24% 24% 29% -8% Margin 15.3% 13.3% 10.0% 8.0% Margin expansion (YoY) 170bps 140bps 140bps -160
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 13
Slide 14: Solidifying sales & distribution infrastructure
Solidifying sales & distribution infrastructure Split-route implementation Implemented in all 1m+ population towns Total Reach Distinct improvement in assortment and growth. 4.0m (Mar’24) ‘Rurban’ focus Direct Reach Added 1,300 distributors in FY24 primarily in Rurban markets 1.6m (Mar’24) Deepening
Slide 15: Strengthening alternate channels
Strengthening alternate channels Modern Trade E-commerce ❖ Channel growth 9% ❖ Channel growth 35% ❖ Contribution to India sales 14% ❖ Contribution to India sales 11% ❖ New SKUs on shelf 50 ❖ India Foods growth 70% ❖ Soulfull growth 65% ❖ Premium salts salience in 42% salt revenue Figures mentioned a
Slide 16: India Business – Fuelling our brands
India Business – Fuelling our brands FY24 A&P spends A&P-to-Sales* v/s FY23* 7% +16% MAT Market share – Salt Value +50 bps1 Salt touched its highest-ever market share of 39.9% in Feb/Mar’24. MAT Market share – Tea Volume -30 bps1 Value -50 bps1 Tea market share has been stable on a QoQ basis * India
Slide 17: Nearly 1 launch every 7 days of the year
Nearly 1 launch every 7 days of the year Disruption Premiumization Convenience Health & Wellness 17
Slide 18: Achieving new milestones in innovation
Achieving new milestones in innovation Innovation-to-sales* New launches in various segments 5.1% 18 17 15 12 12 3.4% 10 2.7% 7 6 1.4% 5 5 4 0.8% 2 FY20 FY21 FY22 FY23 FY24 Convenience Health & Wellness Premiumization FY 21 FY 22 FY 23 FY 24 Exceeding i2s target of 5% 100+ new launches since the for
Slide 19: Step change in digital transformation
Step change in digital transformation 19
Slide 20: Simplify, synergize, scale
Simplify, synergize, scale Amalgamation of India wholly- Restructuring of international Tata Coffee Merger owned subsidiaries (WOS) subsidiaries Integration of tea, coffee extraction Amalgamation of subsidiaries in India Streamlining international holding business into a separate Solubles viz. Nouri
Slide 21: Another strong year for 'Growth businesses'
Another strong year for ‘Growth businesses’ Growth Businesses as a % of India Business 30% Combined YoY 18% revenue growth 15% FY24 10% 8% 6% FY20 FY21 FY22 FY23 FY24 FY24PF FY24 revenue growth doesn’t include Capital Foods which got consolidated w.e.f. Feb 24 21 21
Slide 22: Walking the talk on sustainability
Walking the talk on sustainability ✓ Announced ESG milestones & metrics for FY26, reaffirming clear long-term commitments. ✓ Strengthening sustainability governance with polices on Environment, Energy Conservation, Green Procurement, and Marketing & Communication announced during the year. ✓ Nutriti
Slide 23: 4-years of TCPL: Driving consistent profitable growth
4-years of TCPL: Driving consistent profitable growth… Revenue – India Branded Revenue – International Revenue – Consolidated 4Y CAGR 4Y CAGR 4Y CAGR 16% 39.3 5% 152.1 12% 97.4 32.6 54.0 96.4 FY20 FY24 FY20 FY24 FY20 FY24 Cons. EBITDA Cons. Group Net Profit 4Y CAGR 4Y CAGR 23.2 15% 12.0 27% 4.6 13.1
Slide 24: Unlocking efficiencies while delivering shareholder returns
And unlocking efficiencies while delivering shareholder returns Net working capital (NWC) days EPS 12.3 50 4Y CAGR India business at 5.0 26% 27 4 NWC days (FY24) FY20 FY24 FY20 FY24 Operating cash flow to EBITDA Total Shareholder Return (Apr’20 – Mar’24) 101% 92% 400% FY20 FY24 24 2424
Slide 25: Macro environment
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Slide 26: 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) 246 236 229 234 224 223 222 212 217 208 208 210 212 185 190 177 173 174 195 197 195 156 149 177 180 119 122 118 149 144 103 133 94 96 93 88 128 115 117 1
Slide 27: Market context – category growth rates (value)
Market context – category growth rates (value) +15.0% +15.1% 7.3% 5.3% 3.4% -0.9% -1.9% -2.7% 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) – Mar’24 27
Slide 28: Business performance
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Slide 29: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter grew 2%, with flat volume growth. +2% • Revenue for the year grew 3%, with 2% volume growth. 4-year CAGR Revenue Growth at 9%. • In FY24, premium and sub-premium segments outperformed the overall business and accounted for ove
Slide 30: India Foods
India Foods Performance commentary +20% • Salt revenue grew 5% during the quarter, driven by a volume growth of 3% and favorable mix. Revenue Growth • In FY24, salt revenues grew 9% with a volume growth of 4%. • In line with the company’s premiumization agenda, value-added salts grew 34% in FY24 and
Slide 31: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary • The NourishCo business recorded a revenue growth of 13% during the 204Cr quarter, primarily impacted by the delayed onset of summer. Revenue • Continued the growth momentum in FY24 with net revenues of INR 825 cr. – up 33% YoY. New season campaign
Slide 32: Non-branded Business
Non-branded Business Segment-wise contribution Performance commentary • Revenue for the quarter grew 4%# led by both, the tea and coffee Others +4%# solubles business. Growth in FY24 was 4%#. Revenue Growth Tea solubles 2% • The solubles business saw significantly improved profitability led by stron
Slide 33: Tata Starbucks (JV)
Tata Starbucks (JV) Accelerated pace of store opening 421 Performance commentary • Revenue for the quarter grew 7%, bringing FY24 growth to 12%. Tata No. of stores 221 29 Starbucks ended FY24 with a revenue of Rs. 1,218 crs. Net new stores • Added 29 net new stores during the quarter setting a recor
Slide 34: International operations
International operations UK USA Canada ➢ Revenue for the quarter grew 11% in ➢ Coffee revenue for the quarter grew ➢ Revenue for the quarter grew 9% in Constant Currency (CC) (reported 2% in CC (reported revenue growth CC (reported revenue growth revenue growth of 17%). of 3%). of 10%). ➢ For the ye
Slide 35: Financial Performance
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Slide 36: Performance Highlights – Q4FY24
Performance Highlights – Q4FY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 9% (8% in constant 2,610 308 3,927 currency terms) to Rs 3,927 Crs. 298 2,312 3,619 Revenue from • India business grew 10% (+7% LFL). operations • Constant currency (CC) growth in the international
Slide 37: Performance Highlights – FY24
Performance Highlights – FY24 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue grew 10% (9% in constant 1,423 15,206 currency) to Rs 15,206 Crs. 13,783 Revenue from 952 9,998 9,046 • India business grew 12% (+11% LFL). operations • Constant currency (CC) growth in the international +
Slide 38: Financials: Consolidated
Financials: Consolidated Quarter ended Mar’24 Profit and Loss statement Financial year ended March’24 Q4FY24 Q4FY23 Change % (all nos. in ₹ Crores) FY24 FY23 Change % 3,927 3,619 9% Revenue from operations 15,206 13,783 10 % 631 518 22% EBITDA 2,323 1,874 24 % 16.1 % 14.3% % 15.3% 13.6% 516 436 18%
Slide 39: Financials: Standalone
Financials: Standalone Quarter ended Mar’24 Profit and Loss statement Financial year ended March’24 Q4FY24 Q4FY23 Change % (all nos. in ₹ Crores) FY24 FY23 Change % 2,610 2,312 13% Revenue from operations 9,998 9,046 11% 397 368 8% EBITDA 1,602 1,388 15% 15.2% 15.9% % 16.0% 15.3% 351 326 8% EBIT 1,4
Slide 40: Segment-wise Performance Q4FY24
Segment-wise Performance Q4FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q4 FY24 Q4 FY23 Change Q4 FY24 Q4 FY23 Change India Business 2,480 2,246 10% 320 312 3% 70% India Business International Business 1,052 984 7% 164 127 29% 30% International Business Total Bran
Slide 41: Segment-wise Performance FY24
Segment-wise Performance FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr FY24 FY23 Change FY24 FY23 Change India Business 9,736 8,717 12% 1,348 1,193 13% 71% India Business International Business 3,925 3,589 9% 485 380 28% 29% International Business Total Branded Bus
Slide 42: Concluding remarks
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Slide 43: To conclude
To conclude Macros ▪ While consumer demand is yet to revive fully, we remain cautiously optimistic. ▪ The overall macro environment is stable in key international markets. However, geopolitical developments remain a watchout. Business ▪ In FY24, despite continued softness in consumer sentiments, the
Slide 44: Q&A
Q&A TATA CONSUMER PRODUCTS Joy full Fruit Nut COLD COFFEE AGNI Yuunside TATA a SOULFULL PREMIUM 3 aspicy nna mag!
Slide 45: Other
Slide 46: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st March 2024 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group 34% Market Capitalization (Jan 19, 2024) ₹ 1,044.5 bn 19% Number of Shares Outstanding 952.8 Mn MFs/ UTI/ AIFs 7% Insurance
Slide 47: 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
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