Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q4 FY2020 Earnings Presentation
47 slides from Tata Consumer Products's earnings presentation, May 14, 2020
Slide 1: Cover letter to stock exchanges
May 14, 2020 The National Stock Exchange of BSE Ltd. The Calcutta Stock India Ltd. Corporate Relationship Dept. Exchange Ltd. Exchange Plaza,5th floor 1st Floor, New Trading Wing 7 Lyons Range Plot No. C/1, G Block Rotunda Building, PJ Towers Kolkata 700 001 Bandra Kurla Complex Dalal Street Scrip C
Slide 2: Investor Presentation for the quarter ended March 2020
Investor Presentation For the quarter ended March 2020 May 14, 2020
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 Company Overview COVID-19 Update Business Performance – India Business Performance – Campaigns & Recognition Responsible Business International Financial Performance Contact Information
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 330+ million servings of our revenue in FY20 and current brands consumed every day market cap of ~₹33k
Slide 6: Company Overview
0 0 RL OOO Company Overview . . . . TATA CONSUMER PRODUCTS
Slide 7: Executive Summary
Executive Summary • Merger of the Consumer Products Business of Tata Chemicals with TGBL, completed in Feb’20 (merger appointed date : April 1, 2019), we are now TATA Consumer Products Limited • Consolidated Revenue for the Year grew by 33% and by 35% in Q4. On a like to like basis, revenue grew by
Slide 8: Creation of Tata Consumer Products
Creation of Tata Consumer Products Merger of consumer products business of TCL with TGBL has led to creation of Genesis for creation of TCPL Tata Consumer Products Limited (TCPL) • Creation of a sizeable Consumer company with enhanced scale and Tata Chemicals Tata Global Beverages Tata Consumer Prod
Slide 9: India's Consumption Story
India’s Consumption Story ₹30 lakh crore market Rapidly evolving consumer behaviour Proven ability opportunity Market skewed towards in-the-kitchen segment Rising affluence of households to win Household 219 M 293 M 286 M (million) ► Market size (2019): In-the-Kitchen: TCPL is well positioned to rid
Slide 10: Brand Promise – For Better
Brand Promise – For Better Consumers Employees A commitment to deliver better A rallying cry to aim for better, products that will help everyone catalyzing growth and excitement fulfill aspirations & lead happier, healthier lives As Tata Consumer Products, we stand ‘For Better’ – a reflection of our
Slide 11: Revenues at a Glance
Revenues at a Glance International Beverages In ₹ Cr India Beverages India Foods US Coffee Other International Tata Coffee Consolidated (unless specified) (UK, Canada and Others) (inc Vietnam) Revenue (FY20) 3,377 2,064 1,121 2,105 836 9,637 Revenue Growth 7% 12% 2% 0%^ 19% 33%/4%# Volume Growth 7%*
Slide 12: Performance at Glance for the Year
Performance at Glance for the Year ~₹ 9,637 Cr. ~₹ 1,310 Cr. ~₹ 1,084 Cr. ~₹ 1,321 Cr. Revenue EBITDA PBT (bei)^ Net Cash$ Growth (reported) 33% 56% 41% Comparable growth 4%# 12%# 6.5%# Margin expansion (reported) +200 bps +65 bps Comparable Margin +100 bps# +20 bps expansion Dividend (Rs. per share
Slide 13: Market Context
Market Context Muted FMCG industry growth Depreciation in Indian Rupee % USD/₹ GBP/₹ 20 80 100 16.2 15.7 94.2 93.6 94.2 15 13.4 75 95 72.2 10.6 71.4 71.3 10.0 93.4 92.9 10 8.8 70 90 7.0 7.2 7.3 71.1 70.7 6.7 6.5 69.8 5.0 5.6 5.3 89.1 5.9 5 7.1 4.8 65 85 6.2 5.6 5.8 5.6 5.1 4.7 4.7 0 60 80 Q1FY19 Q2F
Slide 14: Market Context
Market Context Declining commodity costs ₹/KG $C/LB • Tea prices in India have seen a decline 180 180 for some time, largely due to over 121 122 supply from small tea growers 110 104 101 111 120 120 • However, there has been a sharp increase in prices due to temporary 106 110 60 96 60 closer of tea
Slide 15: Market Context for FY20
Market Context for FY 20 Mixed performance across categories (in value terms) • Regular black tea continues to be the largest category share in the US UK Canada India overall global tea market, it has been witnessing slow / declining growth across the markets +8.3% • Non-black tea (Fruit & Herbal, S
Slide 16: COVID-19 Update
0 0 RL OOO COVID-19 Update . . . . TATA CONSUMER PRODUCTS
Slide 17: COVID-19: Business Roadmap
COVID-19: Business Roadmap People focus Collaboration Resilience Innovation Giving back to community • Ensure both • Keep plants • Going the extra • New & innovative physical and operational mile to actively ways of serving & • Supporting essential mental wellbeing meet challenges connecting with wo
Slide 18: COVID-19: Business Update
COVID-19: Business Update International operations India operations India – JVs and plantations • All our factories have been running flat out, • Almost all our Tea packaging units, Salt/Pulses Tata Starbucks and we continue to see high demand, with packing centres and 3P Spices units are now • All
Slide 19: COVID-19: New Ways of Working
COVID-19: New Ways of Working Social distancing measures being implemented Novel channels of distribution, tying up with e-commerce across locations platforms & delivery providers Tata Sampann Turmeric samples with Pride of Cows milk across Mumbai; another initiative under the #hardinhaldi campaign
Slide 20: COVID-19: Support for Global Communities
COVID-19: Support for Global Communities Donation to Grocery Aid UK Tata Gluco Plus and Water Plus being distributed Donations to food banks and charities in USA Tetley supporting NHS clinical staff by supplying tea Consumer response on Facebook has been the highest in years led by sincere recogniti
Slide 21: Business Performance - India
0 0 RL OOO Business Performance - India TATA CONSUMER PRODUCTS . . . .
Slide 22: India: Beverages
India: Beverages Performance commentary +7% • Tea sales grew 6% in Q4 and 7% for YTD • Volumes grew by 5% in Q4 and 7% for YTD Annual Revenue • Spice mix continues to see • The onset of COVID-19 Growth strong growth impacted the primary sales in the month of March; however • Tata Tea Premium gained
Slide 23: India: Foods
India: Foods Performance commentary +12% • Overall volume growth across all segments of Foods • Revenue growth of 9% in the quarter & 12% YTD Annual Revenue • Significant traction in • There has been significant Growth MT/online sales of TATA increase in demand for both Sampann products salt and pul
Slide 24: Subsidiary: Tata Coffee (inc Vietnam)
Subsidiary: Tata Coffee (inc Vietnam) Premium single-origin coffee Performance commentary (100% Arabica) under brand ‘The Sonnets’ launched in 3 variants - Yellow Honey, Red Honey and Gold Honey +19% • Topline grew by 6% in Q4 and by 19% YTD, led by • India Second best Instant tea Annual Revenue Vie
Slide 25: JV: Tata Starbucks
JV: Tata Starbucks Performance commentary +21% • 39 new stores opened in FY20 • New city added in Q4: Vadodara Annual Revenue • Double digit growth in total • 30% revenues generated Rajiv Gandhi International Growth transactions on y-o-y basis through the loyalty program Airport, Hyderabad • Achieve
Slide 26: Business Performance - International
0 0 RL OOO Business Performance - International TATA CONSUMER PRODUCTS . . . .
Slide 27: UK
UK Performance commentary 1% • Value outperformance in March from Everyday as well • Tea Pigs also performed very well on the back of the online Annual Growth as other categories as boom shoppers stock up on staples • Strong uplift in orders seen on • Increased social media e-commerce as more people
Slide 28: USA
USA A limited-edition anniversary pack with a vintage caddy to celebrate Performance commentary 160 years of EOC 5% • Growth across EOC branded bags, K-cups and private • EOC & Tetley see strong growth in March driven by Annual Volume labels COVID-19 as consumers Growth in Coffee stock up their pant
Slide 29: Canada
Canada Performance commentary 6% • COVID-19 panic buying in March inflated total tea value • TCP remains the category’s value & volume share leader Annual Revenue sales in double digits Growth • Specialty tea: • The growth momentum Super Teas have achieved a continues as customers are 3.9% value sha
Slide 30: Campaigns & Recognition
0 0 RL OOO 5 © (CURIRPIGIC PO OG Campaigns & Recognition TATA CONSUMER PRODUCTS
Slide 31: Brand Campaigns: India
Brand Campaigns: India Tata Tea Gold and Starbucks Tata Tea Chakra celebrate • #DiwaliGamesAtStarbucks to get regional pride through together with friends and family hyperlocal campaigns • Barista Pride to celebrate personal triumph of our partners • #CountOnMeGirl to appreciate the bond that women
Slide 32: Brand Campaigns: International
Brand Campaigns: International Tetley UK ‘Now We’re Talking’ campaign gets rated #3 on ITV-backed effective ad list 2019 Tetley Canada promoted the launch of Tetley Tetley Canada promoted Supers Supers Tea through an integrated campaign with “Wellness Contest” #NotYourAverageCupofTea Eight O’ Clock
Slide 33: Awards & Accolades
Awards & Accolades 1. Risk management 4. Product “Best Risk Management Great Taste Awards -Tetley is the Framework & Systems - FMCG” highest awarded UK tea brand at at India Risk Management the ‘Oscars’ of the fine Food and Awards 2020 Beverages world 2. Workplace 5. CSR Top #100 Best Companies for
Slide 34: Responsible Business
0 0 RL OOO Responsible Business . . . . TATA CONSUMER PRODUCTS
Slide 35: Sustainability: Value Chain & Communities
Sustainability: Value Chain & Communities Trustea spreads sustainable UNICEF’s Improving Lives Project Jalodari to provide agricultural practices to program to reach 250,000 water & sanitation for 25000 Tata Consumer 500,000 workers beneficiaries community members in Himachal and Assam Products aims
Slide 36: Sustainability: Climate Change
Sustainability: Climate Change Climate leadership Renewable energy We are one of the 6 companies 12% of the energy in production in India on CDP A- list from solar power Decoupling emissions Carbon neutral from growth Himalayan for USA is certified Carbon footprint decreased 30% Carbon Neutral® in 2
Slide 37: Financial Performance
0 0 RL OOO Financial Performance . . . . TATA CONSUMER PRODUCTS
Slide 38: Highlights – for the quarter ended March'20
Highlights – for the quarter ended March’20 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: Group Revenue grew by 35% (excluding impact of 524 1,335 +3% +6% 524 2,405 merger of India Foods revenue grew by 6%) Revenue from • India beverages business grew by 6% in value operations 1,775 105 and 5
Slide 39: Highlights – for the Year ended March'20
Highlights – for the Year ended March’20 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: 2,064 5,690 2,064 9,637 Group Revenue grew by 33% (excluding impact of +6% +4% merger of India Foods revenue grew by 4%) Revenue from 322 • India beverages business grew by 7% in value operations 7,251 and
Slide 40: Financials: Standalone
Financials: Standalone Quarter Ended March’20 Profit and Loss statement Year ended March’20 Q4FY20 Q4FY19 Change % (all nos. in ₹ Crores) FY20 FY19 Change % 1,335 784 70 % Revenue from operations 5,690 3,430 66 % 160 59 172 % EBITDA 804 438 84 % 12.0 % 7.5% 4.5 % % 14.1 % 12.8 % 1.4 % 127 50 153 % E
Slide 41: Financials: Consolidated
Financials: Consolidated Quarter Ended March’20 Profit and Loss statement Year ended March’20 Q4FY20 Q4FY19 Change % (all nos. in ₹ Crores) FY20 FY19 Change % 2,405 1,775 35 % Revenue from operations 9,637 7,251 33 % 312 176 77 % EBITDA 1,310 838 56 % 13.0 % 9.9 % 3.1 % % 13.6 % 11.6 % 2.0 % 248 143
Slide 42: Segment-wise Performance (for the Year ended Mar'20)
Segment-wise Performance (for the Year ended Mar’20) Revenue - Branded business Particulars Segment Revenue Segment Results INR Cr FY20 FY19 Change (%) FY20 FY19 Change (%) 39 % India beverages 24 % India foods India beverages 3,377 3,168 7% 465 457 2% 37 % International beverages India foods 2,064
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet All no.s in Rs Crores FY20 FY19 Total Equity 14,907 8,359 Goodwill and Brands (Indefinite life) 9,427 3,785 Fixed Assets and other intangibles 2,042 1,571 Working Capital (Net) 1,675 1,663 Operating Capital Employed 13,145 7,019 Other Non-operating Assets (mainly Investmen
Slide 44: Consolidated Cash Flow
Consolidated Cash Flow Cash Flow FY20 FY19 (all no.s in Rs Crores unless specified) Net Cash from Operating Activities 1082 210 Net cash from / (used in) Investing Activities (673) 73 Net Cash used in Financing Activities (308) (224) Net increase in Cash and Cash Equivalents 101 59 Foreign exchange
Slide 45: Merger Accounting
Merger Accounting Asset acquired pursuant to merger Life of Asset Value of Asset (all no.s in Rs Crores unless specified) Goodwill Indefinite 3,563 Tata Salt brand Indefinite 2,093 Other Intangible assets 8-10 years 366 Total Goodwill and Intangible Assets 6,022 Other assets (net of liabilities) 77
Slide 46: Shareholding Information
Shareholding Information Pattern as on April 30, 2020 Stock data BSE Ticker 500800 Others, Promoter 3.31 and NSE Ticker TATACONSUM MFs/UTI/AIFs, promoter Group, 14.87 Market Capitalization (30 April 2020) ₹ 324 Bn. 34.68 Number of Shares Outstanding 921.55 Mn. • The paid-up capital has increased fro
Slide 47: For more information
For more information Contact us: Rakesh R Sony Abhishek Musahib Tanya Dere Satya Muniasamy Global Head of Strategy and M&A abhishek.musahib@tataconsumer.com tanya.dere@tataconsumer.com satya.muniasamy@tataconsumer.com rakesh.r.sony@tataconsumer.com Write to us at investor.relations@tataconsumer.com
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