Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2022 Earnings Presentation
62 slides from Tata Consumer Products's earnings presentation, Aug 3, 2021
Slide 1: Outcome of the Board Meeting held on August 3, 2021
August 3, 2021 0 TATA The National Stock Exchange BSE Limited The Calcutta Stock of India Ltd. Corporate Relationship Dept. Exchange Ltd. Exchange Plaza,5th floor Ist Floor, New Trading Wing 7 Lyons Range Plot No. C/1,G Block Rotunda Building, PJ Towers Kofkata700001 Bandra Kurla Complex Dalal Stree
Slide 2: Press Release and Investor Presentation enclosures
^ TATA Press Release am! Investor Presentation We also enclose herewith the copy of Press Release and Investor Presentation with regards to the Unaudited Financial Results of the Company for the quarter ended June 30,2021. The above information is also being made available on the website of the Comp
Slide 3: Auditor review report: standalone financial results
Deloitte Chartered Accountants One International Center Haskins & Sells LLP Tower 3, 32nd Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai 400 013 Maharashtra, India Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001 STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF TATA CONSUMER PRODUCTS
Slide 4: Auditor review report (continued)
Deloitte Haskins & Sells LLP Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. For Deloitte Haskins & Sells LLP Chartered Accountants 117366W/W-100018) Sanjiv V. Pilgaonkar (Partner) (Membership No. 039826
Slide 5: Unaudited Standalone Financial Results for the quarter ended June 30, 2021
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office: 1 Bishop Lefroy Road Kolkata-700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com Unaudited Standalone Financial Results for the quarter ended June 30
Slide 6: Notes to standalone results
Notes: 1. For the quarter, Revenue from operations increased by 22% over corresponding quarter of the previous year mainly due to volume and value growth in branded business. Profit before exceptional items at Rs 378 crores is higher by 13% as compared to corresponding quarter of previous year due t
Slide 7: Auditor review report: consolidated results
Deloitte Chartered Accountants One International Centre Haskins & Sells LLP Tower 3, 32nd Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai 400 013 Maharashtra, India Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001 RESULTS TO THE BOARD OF DIRECTORS OF TATA CONSUMER PRODUCTS LIMITED (FORMERLY KN
Slide 8: Auditor review report (continued)
Deloitte Haskins & Sells LLP Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. 6. We did not review the interim financial information of two subsidiaries included in the unaudite
Slide 9: Annexure A: list of entities
Deloitte Haskins & Sells LLP Annexure A: Sr. No Name of the Entity: Parent: Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Subsidiaries:- Tata Consumer Products UK Group Limited 1 (Formerly Tata Global Beverages Group Limited) 2 Tata Global Beverages Holdings Limited 3 Tata
Slide 10: Annexure A: list of entities (continued)
Deloitte Haskins & Sells LLP Sr. No Name of the Entity: 27 Campestres Holdings Limited 28 Kahutara Holdings Limited 29 Suntyco Holding Limited 30 Onomento Co Limited Tata Consumer Products Capital Limited 31 (Formerly Tata Global Beverages Capital Limited) 32 Tata Coffee Limited 33 Tata Coffee Vietn
Slide 11: Unaudited Consolidated Financial Results for the quarter ended June 30, 2021
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office: 1 Bishop Lefroy Road Kolkata-700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com Unaudited Consolidated Financial Results for the quarter ended June
Slide 12: Notes to consolidated results
Notes: 1. For the quarter, Revenue from operations increased by 11% (10% in constant currency) as compared to corresponding quarter of the previous year, mainly driven by growth of 28% in India Beverages and 20% in India Foods, International business reported lower revenue as previous year had Covid
Slide 13: Consolidated Segment wise Revenue, Results, Assets and Liabilities
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office : 1 Bishop Lefroy Road Kolkata 700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website: www.tataconsumer.com Consolidated Segment wise Revenue, Results, Assets and Liabilities f
Slide 14: Press release: Results for the Quarter ended 30th June 2021
August 3rd, 2021 Results for the Quarter ended 30th June 2021 Consolidated Results: Revenue from Operations for the Quarter at Rs 3008 Crores is up 11% Consolidated Profit before Exceptional Items for the Quarter and Tax at Rs 340 Crores is lower by 22% Group Net Profit for the Quarter at Rs 200 Cro
Slide 15: Press release: India business updates
• In addition to recording overall market share gains, the branded tea business achieved market share leadership in the e-commerce channel.1 • A new Tata Tea Jaago Re campaign ‘Isbaar sabke liye JaagoRe’ was launched. The initiative calls on individuals to come forward and offer assistance to everyd
Slide 16: Press release: e-commerce and international updates
• E-commerce recorded significant growth of 153% YoY and contributed 7.3% of domestic sales. • The Company recently inaugurated its largest tea packaging plant set up at Gopalpur Industrial Park by Tata Steel Special Economic Zone. The Honourable Chief Minister of Odisha, Shri Naveen Patnaik inaugur
Slide 17: Tata Starbucks, sustainability and awards update
Tata Starbucks • Tata Starbucks recorded revenue growth of 371% in Q1 on a depressed base of last year that was impacted by nationwide lockdown. Despite this growth, the revenue for the quarter was lower when indexed to the same period in FY20. • While April and May this year were impacted by locali
Slide 18: CEO commentary
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered a 11% revenue growth amidst a challenging operating environment and on a high base last year. Despite the severe second wave of COVID, our India businesses performed well with both the Beverages & Food businesses rec
Slide 19: Disclaimer
Disclaimer: Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assu
Slide 20: Investor Presentation for the quarter ended June 2021
Investor Presentation For the quarter ended June 2021 3rd August 21
Slide 21: 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 22: Agenda
Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance – Business performance India – International Financial performance Outlook
Slide 23: 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 ₹ 11.6K crore consolidated Reach to almost 200mn revenue in FY21 with current households in India and market cap of ~₹70k Cr. di
Slide 24: Executive Summary
5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Executive Summary TATA CONSUMER PRODUCTS
Slide 25: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 11% YoY despite a challenging operating environment and a high base. Despite a severe second wave of COVID, India business performed well while International markets saw a decline owing to pantry loading in the base quarter. Overa
Slide 26: COVID-19 update - India
COVID-19 update - India Second wave vs first wave Business Continuity Supply Chain • Widespread impact across rural/hinterland • All factories and plantations were operational • Secured raw materials and packaging supply chains; Ongoing risk management to ensure supply continuity • More infections i
Slide 27: Performance Overview
5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Performance Overview TATA CONSUMER PRODUCTS
Slide 28: Key Businesses snapshot – Q1FY22
Key Businesses snapshot – Q1FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 1,267 705 296 472 241 3,008 Revenue Growth 28% 20% -18% -3% 5% 11% Constant currency growth -15% -10% 6% 10% V
Slide 29: Group Performance at a glance – Q1FY22
Group Performance at a glance – Q1FY22 ₹ 3,008 Cr. ₹ 403 Cr. ₹ 340 Cr. ₹ 200 Cr. ₹ 203 Cr. ~₹ 2,169 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 11% -17% -22% -42% -27% Margin% 13.4% 11.3% 6.7% 6.8% Margin expansion -452 bps -476 bps -608 bps -345
Slide 30: Progress against Strategic Priorities
5 OC OURO 5 © DR CN OO Cc Progress agains Strategic Priorities
Slide 31: 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 12
Slide 32: Fuelling our brands
Fuelling our brands Tata Tea Chakra Gold Care Driving awareness & trials of value added variant, Chakra Gold Care in TN India business1 A&P Q1FY22 +53% YoY Scale up and expansion in southern markets of AP, Telangana and Karnataka. Ongoing hyperlocal campaigns across all core markets for Tata Tea Pre
Slide 33: Making consistent gains on reach & premiumization
Making consistent gains on reach & premiumization Direct coverage On track for # Rural distributors1 as of Sep’20 as of Jun’21 by Sep’21 Pan-India Harmonized Distribution System Value growth in premium salts portfolio Ecommerce +153% YoY 7.3% of Sales2 Institutional channel +144% YoY 1 total number
Slide 34: Strong momentum post second wave of COVID
Strong momentum post second wave of COVID Urban direct outlets billed India F&B revenue growth (%) India F&B Volume growth (%) India Foods India Packaged Beverages 1.12 41 23 1.00 30 0.96 0.93 36 16 21 22 14 3 11 8 -7 MAR'21 APR'21 MAY'21 JUN'21 Q4FY21 APR'21 MAY'21 JUNE'21 Q4FY21 APR'21 MAY'21 JUNE
Slide 35: Embedding Digital across the value chain
Embedding Digital across the value chain Digital strategy Enterprise data platform Continued focus on and vision set-up initiated key business initiatives 16
Slide 36: Continuing the momentum on innovation - India
Continuing the momentum on innovation - India Tata Salt Tata Tea Eight O’Clock Tata Sampann Super Lite Chakra Gold Care Dal Tadka Masala New dust blend that packs A range of Premium International Range of Dal Tadka India's 1st and only salt the traditionally known Coffee offerings; with its Single M
Slide 37: Continuing the momentum on innovation – Intl.
Continuing the momentum on innovation – Intl. Himalayan - UK Teapigs Kombucha Teapigs Cold Brew Good Energy - Good Earth - UK UK UK Australia Himalayan Natural Water – Launch of 6 variants of Teapigs Organic Natural Energy Drink Good Earth launched in Launch of 3 variants of Teapigs Launch of our pr
Slide 38: Soulfull integration update
Soulfull integration update Key Highlights Organization structure and policies harmonized Ensured billing through TCPL within ~45 days of deal closure; 3x GT outlet expansion achieved Completed critical process integration across 10 functions within 90 days of deal closure Completed Sales IT and rel
Slide 39: Recent changes in the Leadership team
Recent changes in the Leadership team Mr. Prashant Parameswaran Mr. Puneet Das Ms. Deepika Bhan Managing Director & CEO President – Packaged ‘ President – Packaged Tata Consumer Soulfull Pvt. Ltd. Beverages(India and South Asia) Foods (India) Mr. T.V. Swaminathan Mr. Punit Gupta Global Chief Digital
Slide 40: Enhancing ESG disclosures
Enhancing ESG disclosures ESG reporting Introduction of an interactive tool on our website to enhance disclosures, reporting and ease of access. 21
Slide 41: Macro environment
5 OC OURO 5 6 SPREE Oc Macro environment
Slide 42: Macro and commodity overview
Macro and commodity overview Global GDP growth rates Commodity price trend Tea Prices Coffee Prices % 21.0 20.5 $c / KG 147 12.2 190 188 189 194 180 107 $c/ LB 5.4 272 96 2.1 4.6 2.3 3.3 4.0 1.6 219 215₹ / KG 0.3 0.5 194 2.0 -2.8 158 1.5 1.4 1.2 -2.4 0.4 $c/ LB -9.0 -2.2 -6.1 ₹ / KG 68 -7.4 -8.5 -7.
Slide 43: Market context – category growth rates
Market context – category growth rates US UK Canada India +28.4% • Regular black hot tea category continued to witness a decline in the US & Canada, owing to the pantry stocking effect in the base quarter. In the UK, regular black tea decline YOY slowed down from the previous quarter. • Non-black te
Slide 44: Business performance – India
5 OC OURO 5 6 SPREE Oc Business performance — India
Slide 45: India Packaged Beverages
India Packaged Beverages Performance commentary +24% • Revenue for the quarter grew • EBIT Margin for the segment 24%, with 3% volume growth, improved QoQ, however impacted by disruption caused by contracted YoY led by tea cost Revenue Growth second wave of COVID. inflation and increased A&P. • Coff
Slide 46: India Foods
India Foods Performance commentary +20% • Salt revenue grew 20% during the quarter, despite a high base. • Tata Sampann portfolio grew 12%, due to pantry loading in the base quarter, bringing the 2-year CAGR Revenue Growth to ~30%. • Continued to drive premiumization with Premium Salts portfolio gro
Slide 47: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary Sales as a % of PY 87Cr 186% 191% • Revenue grew 91% YoY bringing • Roll-out of Himalayan in the 2-year CAGR to 12%, despite Ecommerce and MT channels is the severe adverse impact of seeing good traction. 109% Revenue COVID on OOH consumption. 82% 6
Slide 48: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary +5%# • Revenue for the quarter grew 5% Extractions led by the extractions business, • Overall extraction business grew which helped offset the decline in 21%, with growth seen in both Revenue Growth coffee plantations. Vietnam and do
Slide 49: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 84% • While revenue for the quarter grew 371% on a depressed base of last year, it was still 61% indexed to • Continuous impetus on planning and executing various cost saving initiatives. Stores re-opened* Q1FY20 (baseline). • April and May performance was
Slide 50: Business performance – International
5 OC OURO 5 6 SPREE Oc Business performance - International
Slide 51: UK
UK Performance commentary -13% • Revenue for the quarter declined 11% (constant currency) owing to pantry up-stocking that led to 12% • Specialty OOH channel is seeing fast recovery. Revenue Growth^ growth in the base quarter last year. • Good Earth tea continues to attract younger consumers and Goo
Slide 52: USA
USA Performance commentary -15% • Coffee: Revenue for the quarter • Tea (excluding Empirical): Revenue declined 15% (constant currency), for the quarter declined 8% due to pantry loading that led to 26% (constant currency), on an elevated Coffee Revenue growth in the base quarter last year. base tha
Slide 53: Canada
Canada Performance commentary -25% • Revenue for the quarter declined 25% (constant currency), due to pantry loading that led to 32% • Continued strong performance of Tetley Super Teas range. Revenue Growth^ growth in the base quarter last year. • Tetley has gained market share*, both in regular and
Slide 54: Awards & Recognitions
Awards & Recognitions 1. Corporate 2. Manufacturing Governance Excellence Featured in the ‘Leadership’ category Nonoi Packaging Center won the as assessed by IiAS on the IFC- Silver in the India Green BSE-IiAS Indian Corporate Manufacturing Challenge amongst Governance Scorecard. the top manufacturi
Slide 55: Financial Performance
5 OC OURO 5 6 SPREE Oc Financial Performance
Slide 56: Highlights – for the quarter ended Jun'21
Highlights – for the quarter ended Jun’21 REVENUE: Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Group Revenue grew by 11% (10% in constant currency) Revenue from 294 3,008 operations 361 1,966 2,714 • India Beverages (including Nourishco) grew by 1,605 28%. +11% • India Foods grew by 20%. +22% • Tata
Slide 57: Financials: Standalone and Consolidated
Financials: Standalone and Consolidated Standalone Profit and Loss Statement Consolidated Q1FY22 Q1FY21 Change % (all nos. in ₹ Crores) Q1FY22 Q1FY21 Change % 1,966 1,605 22 % Revenue from operations 3,008 2,714 11 % 274 326 (16) % EBITDA 403 486 (17)% 13.9 % 20.3 % % 13.4 % 17.9 % 239 296 (19)% EBI
Slide 58: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q1 FY22 Q1 FY21 Change Q1 FY22 Q1 FY21 Change 46 % India beverages (%) (%) 26% India foods India Beverages 1,267 989 28% 151 212 (29)% 28 % International beverages India Foods 705 589 20% 96 115 (16)
Slide 59: Outlook
Slide 60: Outlook
Outlook Macros Second wave of COVID-19 in India is now receding and there seems to be a V-shaped recovery since second half of June. Our International markets (US, UK, Canada) are seeing a return to pre-COVID demand trends of packaged tea and coffee categories. Business With the second wave ab
Slide 61: Thank You
Thank You For more information Nidhi Verma For media queries Head – Investor Relations & Corporate Communication Satya Muniasamy nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com Write to us at investor.relations@tataconsumer.com Call us at +91-22-61218400 Last 10-year financials are ava
Slide 62: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th June, 2021 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (June 30, 2021) ₹695.2 bn 21% 35% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 9% Insurance
Tata Consumer Products — Q1 FY2022 Earnings Presentation on 6ix