Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q2 FY25 Earnings Presentation
43 slides from Tata Consumer Products's earnings presentation, Oct 18, 2024
Slide 1: Exchange filing cover letter
October 18, 2024 National Stock Exchange of India BSE Limited The Calcutta Stock Limited Phiroze Jeejeebhoy Towers Exchange Limited Exchange Plaza, C-1, G Block Dalal Street 7 Lyons Range Bandra Kurla Complex, Bandra (E) Mumbai 400001 Kolkata 700 001 Mumbai 400 051 Scrip Code – 10000027 Scrip Code –
Slide 2: Investor Presentation for the quarter ended September 2024
Investor Presentation For the quarter ended September 2024 18th October 2024
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 Performance overview Progress against strategic priorities Macro environment Business performance Financial performance Concluding remarks Other 33
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 ₹ 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 6: Executive Summary
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Slide 7: Executive Summary
Executive Summary Consolidated revenue growth was 13% in Q2FY25 (5% organic). During the quarter, o India Beverages1 grew 3% (-4% organic), with tea volumes declining 4% YoY. o India Foods2 revenue grew 28% (+9% organic). Volume growth was 1%. o International business recorded 7% revenue growth (5
Slide 8: Performance Overview
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Slide 9: Key Businesses Snapshot – Q2FY25
Key Businesses Snapshot – Q2FY25 In ₹ Cr India India Beverages International Non-Branded Consolidated (unless specified) Foods Revenue 1,380 1,368 1,017 462 4,214 Revenue growth 3% [-4%] 28% [9%] 7% 19% 13% [5%] Constant currency growth 5% 19% 12% [4%] Key Brands Notes: a) India Beverages includes P
Slide 10: Key Businesses Snapshot – H1FY25
Key Businesses Snapshot – H1FY25 In ₹ Cr India India Beverages International Non-Branded Consolidated (unless specified) Foods Revenue 2,903 2,714 2,004 963 8,567 Revenue growth 4% [-2%] 29% [12%] 9% 26% 15% [7%] Constant currency growth 7% 25% 14% [7%] Key Brands Notes: a) India Beverages includes
Slide 11: Summary of Group Performance – Q2FY25
Summary of Group Performance – Q2FY25 ₹ 4,214 Cr. ₹ 629 Cr. ₹ 424 Cr. ₹ 388 Cr. ₹ 367 Cr. ₹ 332 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 13% 11% -16% 3% 1% Margin 14.9% 10.1% 9.2% 8.7% Margin expansion (YoY) -30bps -350bps -80bps -100bps EPS (Basi
Slide 12: Summary of Group Performance – H1FY25
Summary of Group Performance – H1FY25 ₹ 8,567 Cr. ₹ 1,300 Cr. ₹ 889 Cr. ₹ 690 Cr. ₹ 656 Cr. ₹ 332 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit (bei)^ Profit Growth (YoY) 15% 16% -11% -4% -6% Margin 15.2% 10.4% 8.1% 7.7% Margin expansion (YoY) 30bps -300bps -150bps -170bps EPS (
Slide 13: Progress against Strategic Priorities
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Slide 14: Strategic Priorities
Strategic Priorities The picture can't be display ed. Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13 13
Slide 15: Strengthening General Trade & driving Channels of the future
Strengthening General Trade & driving Channels of the future General Trade Modern Trade Total Reach Direct Reach Q2FY25 revenue growth* E-commerce Auto-replenishment system Centralised planning and New DMS, MAVIC rolled out implemented across 100% dispatch from facilities to 100% of distributors Q2F
Slide 16: Incubating new channels to fuel growth
Incubating new channels to fuel growth Food Services / HoReCa Pharmacies Pilot rolled out in 2 cities, Mumbai and Ahmedabad Pilot initiated in 10 cities HoReCa-ready packs created across categories Distributors and sales personnel onboarding in progress Initial results encouraging Top ph
Slide 17: India Business – Fuelling our brands across platforms
India Business – Fuelling our brands across platforms Q2 FY25 A&P-to-Sales* 7.5% MAT Market share – Salt Value +150 bps1 MAT Market share – Tea Value -20 bps1 * India business 1 Source: Nielsen – MAT basis, Sep’24 vs Sep’23 Public 16
Slide 18: Continued focus on value-added innovation
Continued focus on value-added innovation 1717
Slide 19: Growth businesses are now a significant part of the India business
Growth businesses are now a significant part of the India business Growth Businesses as a % of India Business 29% Combined YoY revenue growth 18% 18% Q2FY25 15% 10% 8% 6% FY20 FY21 FY22 FY23 FY24 Q2FY24 Q2FY25 Includes overseas revenues for Capital Foods and Organic India. [ ] denotes organic growth
Slide 20: Striving towards a sustainable future
Striving towards a sustainable future Tata Consumer Products was recognised as the: Most Sustainable Consumer Goods Company No. 2 in the Top 50 Most Sustainable Companies across sectors – Business World’s IMSC rankings, 2024 Publicly-stated Sustainable Supply Chain Policy released 1919
Slide 21: Macro environment
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Slide 22: 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) 245 250 234 222 221 224 229 222 217 208 208 210 212 207 208 185 190 186 177 173 174 195 197 195 177 144 180 156 149 133 122 128 128 119 118 117 112 117 1
Slide 23: Business performance
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Slide 24: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter declined 3%, with volume declining 4% owing -3% to soft demand. Net Revenue • Raw tea prices saw significant inflation during the quarter. Staggered price increases have been actioned across brands. • Coffee continued its stro
Slide 25: India Foods
India Foods Performance commentary +28% • Salt revenue grew 2% with flat volumes during the quarter. Revenue Growth • Value-added salts continued their strong momentum and grew 26%; Rock salt registered record volumes. • Tata Sampann had another strong quarter, with 26% growth. +9% Organic Revenue G
Slide 26: Ready-to-Drink (RTD)
Ready-to-Drink (RTD) Performance commentary 154Cr • Revenue for the business declined 11% owing to unfavourable weather and competitive pricing actions. Revenue • Tata Gluco Plus’ pricing was reset in response to competition with encouraging initial results. • Expanded to premium segments with the l
Slide 27: New acquisitions – Capital Foods & Organic India
New acquisitions – Capital Foods & Organic India Index of performance 1.94 Performance commentary 1.55 206Cr • Integration of both businesses completed, Capital Foods and Organic India witness improving quarterly run rates. Capital Foods • Gross margin for both businesses accretive to the Company, i
Slide 28: Non-branded Business
Non-branded Business Performance commentary • Revenue for the quarter grew 19%# led by exceptionally strong coffee realizations in the plantations business. • The solubles business declined 2%# as multi-decadal high coffee +19%# prices impacted demand. • EBIT margin for the business expanded 830bps
Slide 29: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 2%, in line with soft demand trends 19 being witnessed by the sector. Net new stores • 19 net new stores added during the quarter. The total store count stood at 457 as of Sep’24. opened during the quarter • Entered 5 new citi
Slide 30: International operations
International operations UK USA Canada Revenue for the quarter grew 7% (reported US coffee witnessed improving sequential Tetley transitioned to new & improved +10%). trend, returning to growth, up 2% sustainable packs during the quarter. Strong improvement in operating margin The US tea b
Slide 31: Financial Performance
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Slide 32: Performance Highlights – Q2FY25
Performance Highlights – Q2FY25 Consolidated revenue grew 13% (12% in constant Standalone (in ₹ Cr) Consolidated (in ₹ Cr) currency terms) to Rs 4,214 Crs. • India business grew 15%. Organically (net of 481 4,214 3,046 acquisitions), growth was 2%. Revenue from 415 3,734 2,631 operations • Constant
Slide 33: Performance Highlights – H1FY25
Performance Highlights – H1FY25 Consolidated revenue grew 15% (14% in constant Standalone (in ₹ Cr) Consolidated (in ₹ Cr) currency terms) to Rs 8,567 Crs. • India business grew 15%. Organically (net of 6,248 1,092 8,567 941 acquisitions), growth was 4%. Revenue from 7,475 5,307 operations • Constan
Slide 34: Financials: Consolidated
Financials: Consolidated Quarter ended Sep’24 Profit and Loss statement Year-to-date Sep’24 Q2FY25 Q2FY24 Change % (all nos. in ₹ Crores) H1FY25 H1FY24 Change % 4,214 3,734 13% Revenue from operations 8,567 7,475 15 % 629 569 11% EBITDA 1,300 1,116 16% 14.9 % 15.2% % 15.2% 14.9% 480 475 1% EBIT 1,00
Slide 35: Financials: Standalone
Financials: Standalone Quarter ended Sep’24 Profit and Loss statement Year-to-date Sep’24 Q2FY25 Q2FY24 Change % (all nos. in ₹ Crores) H1FY25 H1FY24 Change % 3,046 2,631 16% Revenue from operations 6,248 5,307 18% 343 408 -16% EBITDA 755 791 -5% 11.3 % 15.5% % 12.1% 14.9% 290 346 -16% EBIT 648 678
Slide 36: Segment-wise Performance Q2FY25
Segment-wise Performance Q2FY25 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q2 FY25 Q2 FY24 Change Q2 FY25 Q2 FY24 Change India Business 2,655 2,404 10% 243 331 -26% 70% India Business International Business* 1,116 950 18% 167 96 74% 30% International Business Total B
Slide 37: Segment-wise Performance H1FY25
Segment-wise Performance H1FY25 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr H1 FY25 H1 FY24 Change H1 FY25 H1 FY24 Change India Business 5,470 4,882 12% 569 659 -14% 72% India Business International Business* 2,162 1,845 17% 343 212 62% 28% International Business Tota
Slide 38: Closing remarks
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Slide 39: To conclude
To conclude Macros Erratic weather patterns have affected tea and salt production in India, leading to input cost inflation. The global coffee category continues to face demand headwinds owing to record-high coffee prices. Business India foods, International, and non-branded businesses deliver
Slide 40: Q&A
Q&A TATA CONSUMER PRODUCTS Joyfull Fruit & Nut [earn so Mn ; COLD COFFEE THE ORIGINAL 1 | ’ Pal we TATATEA f ——— TATA aS SOULFULL PREMIUM No MAIDA CHOCO e oy") Yumside oes ‘@ Schezwap Chutnew sweet &spicy. original TTATATEA Grakra a) TATA raasa Punjabi Palak & Corn Curry
Slide 41: Other
Slide 42: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th September 2024 Stock data BSE Ticker 500800 Others 3% NSE Ticker TATACONSUM Individual 19% Promoter and Market Capitalization (Sep 30, 2024) ₹ 1,184.3 bn promoter Group 34% Number of Shares Outstanding 989.4 Mn MFs/ UTI/ AIFs 8% Insur
Slide 43: Thank You
Thank You For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Kaiwan Olia Senior Manager – Investor Relations Kaiwan.olia@tataconsumer.com Retail investors - Contact Call us at investor.relations@tatacons
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