Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2024 Earnings Presentation
39 slides from Tata Consumer Products's earnings presentation, Jul 26, 2023
Slide 1: Investor Presentation
Investor Presentation For the quarter ended June 2023 26th July 2023
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 ₹ 13.8K crore consolidated Reach north of 200mn revenue in FY23 with a households in India and market cap of ~₹80k* Cr distribut
Slide 5: Executive Summary
) CO ORRIN SC CC Executive Summary TATA CONSUMER PRODUCTS
Slide 6: Executive Summary
Executive Summary We had another strong quarter with consolidated revenue growth of 12% (11% constant currency) driven by strong growth in India business. Consolidated EBITDA grew 19%. During the quarter, o India Beverages1 grew 10%, with tea volumes growing 3% YoY. NourishCo continued its momentu
Slide 7: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 8: Key Businesses Snapshot – Q1FY24
Key Businesses Snapshot – Q1FY24 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 1,444 1,033 364 530 340 3,741 Revenue growth 10% 24% 2% 10% [0%]* 13% 12% [11%]* Constant currency growth -5% 8% [-4%]* 11% 11% [9%] V
Slide 9: Summary of Group Performance – Q1FY24
Summary of Group Performance – Q1FY24 ₹ 3,741 Cr. ₹ 547 Cr. ₹ 495 Cr. ₹ 338 Cr. ₹ 341 Cr. ₹ 2,320 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 12% [11%] 19% 23% 22% 16% Margin 14.6% 13.2% 9.0% 9.1% Margin expansion (YoY) 80bps 110bps 70bps 30bps EPS (
Slide 10: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 11: 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 11 11
Slide 12: Progress on S&D; Momentum continues in alternative channels
Progress on S&D; Momentum continues in alternative channels Domestic Total Reach (outlets m) Modern Trade 4.0 3.9 3.8 Q1FY24 revenue growth Mar'23 Jun'23 Sep'23 (P) E-commerce On track to reach 4m outlets by Sep’23, effectively doubling our total reach since Sep’20. We continue to increase bandw
Slide 13: India Business – Powering our Brands
India Business – Powering our Brands Q1FY24 A&P-to-Sales (India Branded Business) Tata Tea Gold Care celebrated Mother’s Day through a personalized tea 7.1% packaging campaign. The campaign reached Tata Tea’s new Jaago Re campaign is an appeal to dial an audience of 90mn + up the public consciousnes
Slide 14: Tata Soulfull: Expanding the portfolio
Tata Soulfull: Expanding the portfolio Tata Soulfull entered new categories with exciting new launches, expanding its Total Addressable Market (TAM) NutriDrink+ Kids is a smoothie mix with the goodness of 6 natural grains sweetened with Jaggery in mouth- watering flavors designed for kids. Nutri
Slide 15: Continuing the momentum on innovation (1/2)
Continuing the momentum on innovation (1/2) Tata Coffee Gold Cold Brew Tata Spring Alive Steeped for more than 12 hours for a strong, rich velvety taste. Pristine packaged water with natural minerals intact, Launched in 3 flavours – Mocha, Classic and Hazelnut competitively priced 1868 Range Extensi
Slide 16: Continuing the momentum on innovation (2/2)
Continuing the momentum on innovation (2/2) Tata Sampann Rava Idli, Rava Dosa Tata Sampann Daliya Popular breakfast mixes to offer our consumers Launched raw Daliya, marking our entry into a highly salient healthier options in a convenient format category in the North making it the perfect fit for T
Slide 17: Momentum continues in the new Engines of Growth
Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 20% 15% 15% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 Q1'23 Q1'24 Q1FY24 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, the RTE/RTC business (Tata Smartfooz). Tata So
Slide 18: Striving towards a sustainable future
Striving towards a sustainable future Published Business Responsibility and Sustainability Report (BRSR) and a section dedicated to our Sustainability strategy, as part of the Integrated Annual Report FY23. Completed third-party verification of Tata Consumer’s global GHG footprint for Scope 1 an
Slide 19: Macro environment
) CO ORRIN SC CC Macro environment
Slide 20: 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) 246 236 233 234 225 229 223 222 224 215 217 217 191 185 212 177 177 173 180 188 195 197 186 147 177 119 149 144 105 103 94 96 93 86 88 128 122 115 117 68
Slide 21: Market context – category growth rates (value)
Market context – category growth rates (value) 15.5% 7.9% 4.0% 3.9% 4.2% 5.8% -0.6% -4.9% 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) – Jun’23 21
Slide 22: Business performance
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Slide 23: India Packaged Beverages
India Packaged Beverages Performance commentary +2% • Revenue for the quarter grew 2%, with 3% volume growth, recording another consecutive quarter of positive volume growth. Revenue Growth • This brings the 4-year revenue CAGR of the business to 7% in Q1FY24. • Both our largest brands, Tata Tea Pre
Slide 24: India Foods
India Foods Performance commentary +24% • Salt revenue grew 18% during the quarter, on a high base of last year (Q1FY23 salt grew 20%). This brings the 4-year revenue CAGR of salt to 17%. Revenue Growth Tata Salt’s new campaign ‘Tez • Tata Sampann delivered strong performance during the quarter, Bac
Slide 25: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary 293Cr • The business recorded strong revenue growth of 60% during the National quarter, on an elevated base (Q1FY23 growth was 110%), and despite Campaign adverse weather conditions. Revenue* • Our flagship drink Tata Gluco+ registered a growth of 6
Slide 26: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +11%# • Revenue for the quarter grew 11%# led by the plantations business. • The plantations business recorded 31% revenue growth during the Revenue Growth quarter, primarily led by higher Arabica sales and coffee trading reve
Slide 27: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 21% YoY. Tata Starbucks’ national 16 • Added 16 new stores and entered 4 new cities during the quarter. campaign “It starts with your Net new stores name” reached 78 million • The business remained EBIT positive, despite stron
Slide 28: International operations
International operations UK USA Canada • Revenue for the quarter grew 1% in constant • Coffee revenue for the quarter declined 5%^ • Revenue for the quarter declined 7%^ driven by currency terms (reported revenue growth of due to lapping of price increases as well as tea category softness. 6%). cont
Slide 29: Project Andromeda: Tetley’s transformation in the UK
Project Andromeda Tetley’s transformation in the UK TCP UK launched the new Tetley tea with a superior blend, plant-based tea bags, and recyclable packaging, delivering a step-change in future-proofing the business and driving the sustainability agenda. Better Product Better Factory Better Planet Su
Slide 30: Financial Performance
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Slide 31: Performance Highlights – Q1FY24
Performance Highlights – Q1FY24 Standalone Consolidated Consolidated Revenue at Rs 3,741 Crs (in ₹ Cr) (in ₹ Cr) • The India business grew 16%. • Constant Currency (CC) growth in the 414 3,741 Revenue from 239 2,316 3,327 International Business was 3%, It was -4% on a 2,077 operations like-to-like b
Slide 32: Financials: Standalone and Consolidated
Financials: Standalone and Consolidated Standalone Profit and Loss statement Consolidated Q1FY24 Q1FY23 Change % (all nos. in ₹ Crores) Q1FY24 Q1FY23 Change % 2316 2077 12 % Revenue from operations 3,741 3,327 12 % 356 307 16 % EBITDA 547 460 19 % 15.4 % 14.8% % 14.6 % 13.8 % 318 272 17 % EBIT 465 3
Slide 33: Segment-wise Performance Q1FY24
Segment-wise Performance Q1FY24 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q1 FY24 Q1 FY23 Change Q1 FY24 Q1 FY23 Change India Business 2,478 2145 16% 328 273 20% 73% India Business International Business 895 837 7% 116 104 11% 27% International Business Total Brande
Slide 34: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 35: To conclude
To conclude Macros We continue to see improving demand trends for our core categories and remain cautiously optimistic going forward, subject to rural recovery and a normal monsoon. While global inflation begins to plateau, category demand trends in our key International markets need to be monit
Slide 36: Q&A
TATA CONSUMER PRODUCTS Q&A c7 PREMIUM TATA 5 SOULPULL -RAGI BITES. cs taf TATA pene h A ae sampann reese BE karst TATA raasa Punjabi Palak & Corn Curry TATA COPPER?
Slide 37: Other
Slide 38: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th June, 2023 Stock data BSE Ticker 500800 Others 6% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (Jun 30, 2023) ₹ 799.8 bn Individual 34% 20% Number of Shares Outstanding 929.0 Mn MFs/ UTI/ AIFs 6% Insurance F
Slide 39: 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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