Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q2 FY2021 Earnings Presentation
39 slides from Tata Consumer Products's earnings presentation, Nov 6, 2020
Slide 1: Cover letter to stock exchanges
^ TATH November 6, 2020 The National Stock Exchange of BSE Ltd. The Calcutta Stock India Ltd. Corporate Relationship Dept. Exchange Ltd. Exchange PIaza,5th floor 1 Floor, New Trading Wing 7 Lyons Range Plot No. C/1,G Block R-otunda Building, PJ Towers Kolkata700001 Bandra Kurla Complex Dalal Street
Slide 2: Investor Presentation for the quarter ended September 2020
Investor Presentation For the quarter ended September 2020 6th November’20
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 Integration Update Business Performance – India Business Performance – Responsible Business Financial Performance International Outlook and Priorities
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 ₹ 9.6K crore consolidated Reach to almost 200mn revenue in FY20 and current households in India and market cap of ~₹47k Cr. dist
Slide 6: Executive Summary
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Slide 7: Executive Summary (for the Qtr ending 30th Sep'20)
Executive Summary (for the Qtr ending 30th Sep’20) • India Business grew strongly; while there was demand normalization in International markets with unwinding of pantry loading • Consolidated Revenue grew 19% to INR 2,781Cr driven by strong growth in India Business • Consolidated EBITDA grew 26% to
Slide 8: Key Businesses snapshot
Key Businesses snapshot International Beverages In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 1,120 580 301 444 56 243 2,781 Revenue Growth 32% 13% 11% 11% -23% 17% 19% Constant currency
Slide 9: Group Performance at a glance
Group Performance at a glance ₹ 2,781 Cr. ₹ 402 Cr. ₹ 345 Cr. ₹ 273 Cr. ~₹ 1,439 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 19% 26% 31% 31% Margin% 14.4% 12.4% 9.8% Margin expansion +90 bps +120 bps +100 bps (Y-on-Y) 2.79 (EPS) EPS / Cash EPS 4.08 (Cash EPS) +33% (EPS)
Slide 10: Macro and Commodity Overview
Macro and Commodity Overview Sharp recovery in economic activity, post Volatile commodity prices weakness in Q1 Tea Prices Coffee Prices % 5.2 227 188 $c / KG 115 $c/ LB 2.1 4.4 2.3 4.1 3.1 190 107 101 2.0 0.3 1.3 1.0 1.0 -2.8 272 ₹ / KG -2.1 -9.0 156 155 -10.1 72 -10.4 163 ₹ / KG 61 61 $c/ LB -21.5
Slide 11: Quarterly Category Performance
Quarterly Category Performance • Regular black tea growth has Mixed performance across categories and regions softened in US and Canada as US UK Canada India compared to high levels seen in Q1. In UK, Regular black tea growth is driven by competitive price landscape at Key retailer during July-Sep (
Slide 12: Integration Update
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Slide 13: Key Integration milestones: Update
Key Integration milestones: Update Broad timelines and Status Mar’20 Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Impact Integrated Org structure • Integration expected to be Organisation Complete Integration & Process Harmonization substantially completed by Q4 FY21; to enable better execution of Synergies Identifi
Slide 14: Business Performance - India
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Slide 15: India Packaged Beverages
India Packaged Beverages Performance commentary • Robust revenue growth • Margins stable YoY despite +29% across the portfolio, driven by higher volume and price unprecedented inflation in raw tea prices, delivered Revenue Growth realization through dynamic P&L management. Celebrating local artisans
Slide 16: India Foods
India Foods Performance commentary • Double-digit revenue growth • Pulses continue to deliver +13% across the Salt and Tata Sampann portfolio. robust growth, up 35%. Revenue Growth • Our new launches Poha and • Salt revenues grew 10% in nutria-mixes are showing Q2 with market share gains*. strong tr
Slide 17: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) # Performance commentary Sales as a % of PY 101% • Sequential recovery in sales, 91% 67% 38 Cr both volume and value. • Himalayan continues to face some headwinds with lockdown restrictions. Revenue 37% However, gradual recovery • Highest ever volumes achieved of sales se
Slide 18: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary • Topline grew by 17% (15% in +17%# constant currency terms) led by Vietnam primarily Extractions • Overall extraction business Revenue Growth grew by 13% (+11% volume growth) led by Vietnam Plantations business • Plantations busines
Slide 19: Tata Starbucks (JV)
Tata Starbucks (JV) Three All women Performance commentary stores opened during this year. • Revenue recovering month- • Opened 11 new stores and added 86% on-month, Sept ~70% of previous year. one new city (Lucknow) Stores re-opened • MSR members: 8.13 lakhs : • Significant savings achieved YoY%:
Slide 20: Business Performance - International
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Slide 21: UK
UK Performance commentary • Revenue growth of 4% • Improved profitability on 4% (constant currency) with volume growth of 7% account of higher sales and improved gross margins Revenue Growth^ • Discounter channel continues • Good Earth Tea and to be the biggest growth Kombucha performing well driver
Slide 22: USA
USA Performance commentary • Coffee: Good revenue growth • Good Earth Sensorial Blends 4% of 4% (constant currency), while volumes declined 3% seeing good traction Coffee Revenue Growth^ • Tea (excluding Empirical): Strong revenue growth of 11% New Good Earth Sensorial against volume growth of 8% bl
Slide 23: Canada
Canada Performance commentary 1% • Tetley #1 in Specialty tea category now in value • Revenue growth of 1% (constant currency) Underlying Revenue terms also^ • , against a volume decline Growth^^ of 7%; driven by a decline in foodservice business and • Post a surge in Q1, discontinuation of ethnic N
Slide 24: Brand Campaigns
Brand Campaigns Tetley Mango launched, supported by Local promotions and Digital campaigns. Eight O’ Clock Coffee USA partnered with Evette Rios to celebrate National Coffee day over social media. https://www.facebook.com/watch/?v=423952188573696 Tata Sampann #spiceupyourhealth campaign Tetley Canad
Slide 25: Awards & Recognition
Awards & Recognition 1. Most Trusted Brand 2. Brand of the Year Tata Salt won the title of India's Tata Tea Premium won awards in 6 Most Trusted Brand for 2020 – categories at the ‘ET Brand Equity third time in a row. Shark Awards 2020’, along with ‘Brand of the Year 2020’. 3. Great Workplace 4. Gre
Slide 26: Responsible Business
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Slide 27: Sustainability: Value Chain, Communities & Climate
Sustainability: Value Chain, Communities & Climate FOR BETTER COMMUNITIES FOR BETTER PLANET Climate Leadership Water Stewardship We are one of the 6 companies Project Jalodari in Himachal in India on CDP A- list and Assam with Tata Trust Trustea Program verifies 650 Tetley’s Follow the Frog Mn. kgs
Slide 28: Financial Performance
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Slide 29: Highlights – for the quarter ended Sep'20
Highlights – for the quarter ended Sep’20 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: 1,736 434 2,781 309 Group Revenue grew by 19% (constant currency 16%) Revenue from 1,427 2,347 operations • India Beverages (including RTD) grew by 32%. • India Foods higher by 13%. +22% +19% • Internation
Slide 30: Financials: Standalone
Financials: Standalone Quarter ended Sep’20 Profit and Loss statement Year to date Sep’20 Q2FY21 Q2FY20 Change % (all nos. in ₹ Crores) 1HFY21 1HFY20 Change % 1,736 1,427 22 % Revenue from operations 3,342 2,891 16 % 254 205 24 % EBITDA 579 439 32 % 14.6 % 14.4% 0.2 % % 17.3 % 15.2 % 2.1 % 223 178 2
Slide 31: Financials: Consolidated
Financials: Consolidated Quarter ended Sep’20 Profit and Loss statement Year to date Sep’20 Q2FY21 Q2FY20 Change % (all nos. in ₹ Crores) 1HFY21 1HFY20 Change % 2,781 2,347 19 % Revenue from operations 5,495 4,739 16 % 402 317 26 % EBITDA 888 671 32 % 14.4 % 13.5 % 0.9 % % 16.2 % 14.2 % 2.0 % 339 25
Slide 32: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results INR Cr Q2 FY21 Q2 FY20 Change Q2 FY21 Q2 FY20 Change 45 % India beverages (%) (%) 23% India foods India Beverages 1,120 848 32% 149 112 33% 32 % International beverages India Foods 580 513 13% 93 68 36% I
Slide 33: Consolidated Balance Sheet and Cash Flow
Consolidated Balance Sheet and Cash Flow All no.s in Rs Crores 1HFY21 1HFY20 Total Equity 15,221 14,525 Goodwill and Brands (Indefinite life) 9,520 9,460 Fixed Assets and other intangibles including Lease assets (net) 1,954 1,978 Working Capital (Net) 1,964 1,834 Operating Capital Employed 13,438 13
Slide 34: Outlook and Priorities
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Slide 35: Outlook
Outlook Macros • Covid-19 second wave in Europe and parts of the US, while new case rate is on a decline in India. • Indian economy seems to be on a recovery path, albeit the pace of recovery will depend on further stimulus measures. • Several measures of consumer sentiment registered a sharp declin
Slide 36: Focus & Priorities
Focus & Priorities Build on Drive Digital & Unlock Create Future Explore New Care for our Core Business Innovation Synergies Ready Org. Opportunities Society 35
Slide 37: Thank You
TATA CONSUMER PRODUCTS Thank You
Slide 38: Shareholding Information
Shareholding Information Quarter Ended June’20 Pattern as on Sept 30, 2020 Stock data BSE Ticker 500800 Others 3% Promoter and promoter MFs/ UTI/ AIFs Group NSE Ticker TATACONSUM 12% 35% Market Capitalization (Oct 30, 2020) ₹454.2bn Number of Shares Outstanding 921.55 Mn. Individual 22% Insurance Co
Slide 39: For more information
For more information Contact us: Rakesh R Sony Nidhi Verma Abhishek Musahib Satya Muniasamy Global Head of Strategy and M&A Head – Investor Relations & Comm. abhishek.musahib@tataconsumer.com satya.muniasamy@tataconsumer.com rakesh.r.sony@tataconsumer.com nidhi.verma@tataconsumer.com Write to us at
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