Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Shareholder Meeting (June 2023)
34 slides from Tata Consumer Products's shareholder meeting presentation, Jun 6, 2023
Slide 1: 60th Annual General Meeting, Financial Year 2022-23
60th Annual General Meeting Financial Year 2022-23 Presentation by Sunil D’Souza Managing Director & CEO 6th June 2023 External-Generic
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 About Us Key Highlights & Financial Progress against Strategic Performance Priorities Business performance Awards & Recognitions
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 current households in India and market cap of ~₹73k* Cr dis
Slide 5: Key Highlights & Financial Performance
TATA CONSUMER PRODUCTS se fe 8 8 BB egg - 8 SMO Go l,l Key Highlights & “am Financial . Performance =
Slide 6: Key Highlights - FY23
Key Highlights - FY23 • Consolidated Revenue up 11% Consolidated EBITDA for the (10% in constant currency) year up 7% YoY, with an • Group Net Profit up 30%. EBITDA margin contraction of 50bps YoY led by a volatile commodity environment • Overall, India business1 up 10% with Proposed Dividend Rs 8.4
Slide 7: Key Businesses Snapshot – FY23
Key Businesses Snapshot – FY23 In ₹ Cr India India US Coffee International Tata Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 5,051 3,666 1,489 2,100 1,360 13,783 Revenue growth 1% 26% 15% 3% [1%]* 27% 11% Constant currency growth 7% 5% [3%]* 25% 10% Volume grow
Slide 8: Financial performance – FY23
Financial performance – FY23 ₹ 13,783 Cr. ₹ 1874 Cr. ₹ 1,634 Cr. ₹ 1,320 Cr. ₹ 1,174 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 11% [10%] 7% 8% 30% 11% Margin 13.6% 11.9% 9.6% 8.5% Margin expansion (YoY) -50bps -30bps 140bps Flat EPS 13.
Slide 9: 3-years since TCPL: driving profitable growth…
3-years since TCPL: driving profitable growth… Revenue – India Revenue – International Revenue – Consolidated 3Y CAGR 3Y CAGR 3Y CAGR 87.2 17% 35.9 3% 137.8 13% 32.6 54.0 96.4 FY20 FY23 FY20 FY23 FY20 FY23 Cons. EBITDA Cons. Group Net Profit EPS 3Y CAGR 3Y CAGR 3Y CAGR 18.7 13.2 13.0 38% 13% 42% 13.
Slide 10: Dividend and Market Capitalization
Dividend and Market Capitalization Consistent growth in dividend payout Step change in Market Capitalization 8.45 787 740 6.05 650 4.05 362 2.70 785 2.50 2.50 245 68.2 73.1 558 235 59.9 373 33.4 249 158 158 15.4 14.8 FY18 FY19 FY20 FY21 FY22 FY23 May-18 May-19 May-20 May-21 May-22 May-23 Pay out (Rs
Slide 11: Progress against Strategic Priorities
ee 8 RR 0 (CCPC COE OO Progress agains Strategic Priorities
Slide 12: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 12
Slide 13: Progress on S&D – delivering on commitments
Progress on S&D – delivering on commitments Direct reach (m outlets) Total reach (m outlets) 4.0 S&D Agenda for FY24 3.8 ✓ Increase total reach to 4m outlets 3x direct reach ✓ Increase bandwidth at the front end through split routes for salesmen in 1.5 Ten Lac Plus Population (TLP) towns. 1.3 0.7 ✓
Slide 14: Winning in alternate channels – MT & E-commerce
Winning in alternate channels – MT & E-commerce Modern Trade E-commerce FY23 revenue growth FY23 revenue growth FY23 contribution to FY23 contribution to India revenue India revenue (ex. NourishCo) (ex. NourishCo) New SKUs on shelf in FY23 NPD contribution in FY23 All numbers above are for FY23, and
Slide 15: Continuing our hyperlocal approach
Continuing our hyperlocal approach Tata Tea Premium celebrated Lohri in Punjab with limited-edition festive packs and an impactful 360° campaign. Tetley’s made a bold statement this International Women’s Day with its viral #everyBODYcan campaign. Market share – Tea Tata Tea Premium celebrated India’
Slide 16: Strengthening our Salt business through a multi-brand play
Strengthening our Salt business through a multi-brand play From mostly vacuum-evaporated salt, we now offer consumers a complete assortment across various types, benefits, and price points. Segment Assortment Price index Market share Super Premium >4.0x Salt +76bps1 Premium, 1.0-3.0x Share of Value-
Slide 17: Upping the ante on innovation
Upping the ante on innovation Beverages Foods Innovation to sales 3.4% 2.7% 1.4% 0.8% FY20 FY21 FY22 FY23 Number of new launches per year 34 19 14 New Categories FY21 FY22 FY23 17 External-Generic 17
Slide 18: Continued focus on Digital
Continued focus on Digital Journey So Far Shift to cloud Single Instance Integrated S&D IBP Clearview of SAP Backbone Analytics Next Frontier – Lead Themes Data-driven Revenue Data-driven Mktg & AI/ML Led Data-driven NPD Growth Management ROI-led spend Procurement Org (RGM) allocation 18 External-Ge
Slide 19: Simplify, Align & Synergize
Simplify, Align & Synergize Simplify Align Synergize Consolidation of legal structure to drive efficiencies Reduce the number of entities from 45 to ~25 Consolidating ownership in JVs Bangladesh Composite Scheme of Demerger & Merger South Africa 1919 External-Generic
Slide 20: Momentum continues in the new Engines of Growth
Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 15% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 FY23 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, and the RTE/RTC business (Tata Smartfooz). Tata Soulfull & Tata Smar
Slide 21: Progress during the year on our acquisitions
Progress during the year on our acquisitions Scaled to a net sales of INR 621 cr. in Soulfull revenue grew 100%+ YoY Rebranded TataQ to Tata Sampann FY23, up from Rs 180 cr. in FY20. Yumside for domestic markets and Continued to capitalize on TCPL’s Tata Raasa for international markets. extensive di
Slide 22: Tata Starbucks scaling rapidly
Tata Starbucks scaling rapidly Rs. 1,087 Cr. 333 41 71 FY23 Net Sales Total stores Cities New stores added in FY23 Pilot programme Tata Starbucks is looking to rapidly expand its We ran a pilot in 2022 across four cities in India to: presence in the coming years. To achieve this, we ✓ Drive familiar
Slide 23: Striving towards a sustainable future – our sustainability goals
Striving towards a sustainable future – our sustainability goals ▪ During the year, we released our ESG strategy along with specific commitments across parameters. ▪ In the UK, we have switched to Green Electricity procurement completely. ▪ TCPL won Gold Award in the Climate Change category at the
Slide 24: Business performance
se fe 8 8 BB egg - 8 SMO Go l,l Business performance
Slide 25: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the year declined 5%, • TCPL retained market leadership in Tata Tea Premium Celebrated Utkala -5% with 1% volume decline owing to weakness in some of our key markets tea in e-commerce. Dibasa (Odisha Day) Revenue Growth and price correcti
Slide 26: India Foods
India Foods Performance commentary • Tata Sampann delivered strong +26% • For the year, salt grew 25%, delivering a three-year CAGR of 19%. growth of 29%, with broad-based performance across the portfolio. Revenue Growth • The value-added salts portfolio grew • Salt margin is almost back to its to 4
Slide 27: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary • Nourishco had a landmark year, • Himalayan water grew 85% YoY 621Cr recording Rs 621 cr. in net sales for the year, up 80% YoY. and was profitable. Revenue • New products contributed 13% to • Tata Copper+ is >7x, Tata Gluco NourishCo’s FY23 sales.
Slide 28: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary Extractions +25%# • Revenue for FY23 grew 25% in constant currency terms. • Overall extractions business grew by 26% # during FY23. Revenue Growth • The plantations business recorded • EBIT margin for the extractions 17% reven
Slide 29: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for FY23 grew 71%, albeit • The business was EBIT-positive for 71 on a base that was impacted by the pandemic. the year. Continued momentum with New stores strong new city openings • Added 71 new stores and entered opened during the 15 new cities
Slide 30: International operations
International operations UK USA Canada • Revenue growth for the year was flat^. • Coffee revenue for FY23 grew 7%^. • Revenue for the year grew 9%^. • Completed the integration of Teapigs with our • We implemented a series of price increases to • Tetley maintained its market leadership UK business t
Slide 31: Awards
Slide 32: Awards & recognition
Awards & recognition During the year, we received several recognitions and awards for exemplary corporate performance, governance, sustainability, brand campaigns and operational excellence. India’s 4th Most Valuable Brand in the Food and Beverage category in the Brand Finance India 2022 Report Rank
Slide 33: Awards & recognition
Awards & recognition Gold Award in Category 2 – Tata Tea Chakra Gold won the Brand of the Year Climate Change of ICAI International Sustainability Reporting at Exchange4media’s Indian Marketing Awards Awards 2021-22 South 2022 Tata Consumer Products’ Beverages packeting centres in Gopalpur and Kelly
Slide 34: Thank You
Thank You Last 10-year financials are available on Historical financial data tataconsumer.com TataConsumer tata-consumer-products/ tataconsumerproducts/ 34
Tata Consumer Products — Shareholder Meeting (June 2023) on 6ix