Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Q2 2017-18 Earnings Presentation
23 slides from Tata Consumer Products's earnings presentation, Nov 15, 2017
Slide 1: Analyst Meet
Analyst Meet 15 November 2017
Slide 2: Agenda
Agenda 1. BUSINESS PERFORMANCE 2. FINANCIAL OVERVIEW 2
Slide 3: Business Performance
Business Performance 3
Slide 4: Key Highlights
Key Highlights Significant increase in Share Price and Market Capitalisation in the quarter • Operating Income for the quarter increased by 6% in underlying terms • Strong performance in India • Good performance in developed markets despite retailer pressures and decline in black tea category • Good
Slide 5: Snapshot of Financials – Q2
Snapshot of Financials – Q2 Total Operating Income Profit before Exceptional Items Group Consolidated Net Profit 4% (up 6% in underlying terms) 23% 11% 1692 1622 208 154 170 140 2017 2016 2017 2016 2017 2016 Strong performance in Quarter 2 5
Slide 6: Snapshot of Financials – H1
Snapshot of Financials – H1 Total Operating Income Profit before Exceptional Items Group Consolidated Net Profit 1% (up 4% in underlying terms) 15% 14% 3397 3357 427 296 371 259 2017 2016 2017 2016 2017 2016 Strong performance in H1 6
Slide 7: Performance Update – Branded Business
Performance Update – Branded Business INDIA • Sales improvement for quarter and year to date • Supported by a good volume growth in later half of Q2, post transition to GST • Continue to maintain Volume and Value leadership • Benefit of commodity cost • Continued investment behind Jaago Re Version 2
Slide 8: Performance Update – Branded Business
Performance Update – Branded Business UK • UK grows market shares predominantly in non black tea category, despite • Category decline in everyday black tea • Continuing competitor intensity • Green Tea continues to grow with improvement in Super Greens Tea • Multimedia campaign of Tetley Supers with
Slide 9: Performance Update – Branded Business
Performance Update – Branded Business US • Strong topline improvement in Branded Coffee for Quarter 2 • Benefits of Keurig K-cup direct sales • Recent Launches – • New Infusions range – Super Spice, B6 Metabolism, Acai Glow – Sales gathering pace • Limited Addition – Pumpkin Spice • Improved perform
Slide 10: Performance Update – Non Branded Business
Performance Update – Non Branded Business Tata Coffee Performance impacted by lower sales both in ICD and plantation Instant Tea Instant tea business reflects a stable performance Associate (APPL, KDHPC and EMSPL) Good performance across all associates driven by higher volumes and improved rea
Slide 11: Performance Update – Incubatory Businesses
Performance Update – Incubatory Businesses Starbucks Opens its 100th store on its fifth anniversary in India • Strong Topline Growth and store-level profitability • Growth in new stores and new formats to continue • Aims to increase diversity and boost the proportion of women in its workforce to 40%
Slide 12: Performance Update – Incubatory Businesses
Performance Update – Incubatory Businesses NourishCo • Double digit growth continues for Tata Gluco Plus & Himalayan • Recorded profit at operating level • Himalayan demonstrated good growth in traditional trade, e-commerce and key accounts • Recent Launches - Himalayan Sparkling, Flavoured Himalaya
Slide 13: Focus on Strategic Priorities remains…
Focus on Strategic Priorities remains….. • Continued investment behind building core brands through Jaago Re campaign • Market Share gain in UK, across most categories Base Business Rejuvenation • Coffee - Renegotiation of Keurig Contract • Tata Coffee - Tata Coffee infused in aggregate an amount of
Slide 14: Tata Global Beverages participates in the “One Tata” pavilion at World Food India
Tata Global Beverages participates as part of the “One Tata” pavilion at World Food India THEME – Transforming the food economy • The largest ever gathering of investors, manufacturers, producers, food processors, policy makers, and organizations from the global F&B ecosystem • Opportunities for inv
Slide 15: Financial Overview
Financial Overview 15
Slide 16: Financial Overview – Operating Performance
Financial Overview – Operating Performance Sixth consecutive quarter of operating profit growth Quarter 2 highlights - Operating income higher by 4% (6% in underlying currency) • Growth in India Tea Brands • Improved performance in US branded coffee Partly Offset by • Underperformance in Non Branded
Slide 17: Financial Highlights - PL
Financial Highlights - PL Quarter ended Sep 30, 2017 Particulars Year to date Sep 30, 2017 Actual PY Variance (In Rs crores) Actual PY Variance 1692 1622 70 Revenue from operations 3397 3357 40 1508 1464 44 Total Expenses 2997 2997 0 184 158 26 Operating Profit 400 360 40 34 35 (1) Other Income 48 5
Slide 18: Financial Highlights - OCI
Financial Highlights - OCI Quarter ended Sep 30, 2017 Particulars Year to date Sep 30, 2017 Actual PY Variance (In Rs crores) Actual PY Variance 154 140 14 Consolidated Group Net Profit 296 259 37 43 106 (63) Changes in Fair Value of Equity Instruments 52 174 (122) Exchange difference on translation
Slide 19: Region-wise Revenue from Operations
Region-wise Revenue from Operations Quarter ended Sep 30, 2017 Particulars Year ended Sep 30, 2017 Actual PY Variance (In Rs Crores) Actual PY Variance 415 337 78 CAA 807 706 101 362 395 (33) EMEA* 678 777 (99) 727 691 36 India Brands 1519 1450 69 1504 1423 81 Total Brands 3004 2933 71 198 212 (14)
Slide 20: Segment – YTD
Segment – YTD Particulars Segment Revenue Segment Results Capital Employed (In Rs Crores) Sep 17 Sep 16 Sep 17 Sep 16 Sep 17 Sep 16 Branded Business Tea 2454 2381 349 321 3641 3308 Coffee 540 557 91 99 1613 1693 Others 18 14 (5) (8) 27 16 Total Branded Business 3012 2953 435 412 5282 5018 Non Brande
Slide 21: Balance Sheet
Balance Sheet Details (Rs cr) 30-Sep-17 31-Mar-17 Assets Non Current Assets Goodwill 3666 3498 Other non Current Assets 2253 2736 Net Working Capital 771 780 Cash & Cash Equivalent 1669 1018 Asset on Disposal group (net) 75 26 Total Assets 8434 8058 Equities & Liabilities Total Equity 7607 7185 Non
Slide 22: Share Performance & Market Capitalisation
Share Performance & Market Capitalisation 15,566 Price as on 14th Nov Touched a high of Rs 248 on 2017 14,323 14th Nov 2017 246.65 12,988 12,496 226.95 205.80 10,700 198.00 9,501 9,662 9,508 9,429 169.55 150.65 150.55 153.10 149.40 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Mar-1
Slide 23: Thank you
Thank you
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