Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Q2 FY2020 Earnings Presentation
32 slides from Tata Consumer Products's earnings presentation, Oct 30, 2019
Slide 1: Cover letter to stock exchanges
G TATA October 30, 2019 The National Stock Exchange BSE Ltd. Calcutta Stock Exchange of India Ltd. Corporate Relationship Dept. Ltd. Exchange Plaza,Sth floor is1 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
Slide 2: Investor Presentation for Quarter ended September 2019
INVESTOR PRESENTATION for Quarter ended September 2019
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 1 Executive Summary 2 Business Profile 3 Performance at a Glance 4 Business Performance 5 M&A Update 6 Quarterly Financial Performance 7 Recognition 8 Sustainability Initiatives 3
Slide 5: Executive Summary
Executive Summary Consolidated Revenue grew by 4% to INR 1,834Cr (Q2) and by 5% to INR 3,731Cr (H1) with higher overall 1 volume growth of 7% both in Q2 and H1 impacted by lower realisations with commodity price deflation Consolidated EBITDA grew by 13% to INR 237 (Q2) and by 10% to INR 505Cr (H1) 2
Slide 6: Consolidated Revenue: H1 - INR 3,731 Cr | Q2 - INR 1,834 Cr
Consolidated Revenue: H1 - INR 3,731 Cr | Q2 – INR 1,834 Cr (Branded Business - 87%) CANADA 52% INDIA Tetley, EUROPE Tata Tea Tata Tea, Tetley Tetley, Teapigs, Jemca, Vitax Himalayan, Fruski, Tata Cha 4% 17% 23% US Tetley, Teapigs, Tata Tea, Good Earth Eight O’ Clock Non-Branded Business: H1 – INR 4
Slide 7: Market Context
Market Context FMCG growth in India* Exchange rates 25% 80.0 USD/INR 100.0 GBP/INR 20% 16.2% 75.0 95.0 15.7% 71.4 92.1 15% 13.4% 90.0 90.2 10.6% 70.0 69.0 68.8 10.0% 71.0 90.0 10% 7.3% 68.5 68.5 65.0 87.6 86.9 85.0 5% 83.7 0% 60.0 80.0 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Jul Aug Sep Jul
Slide 8: Market Context
Market Context 2 years CAGR Commodity Costs# Category Growth Trends (MAT value)* 200 Rs/kg 200 148 156 155 $c/lb US UK Canada +3% 134 7% 150 100 107 101 87 101 92 +3% 100 4% -13% 0 50 Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY18 Q2 FY19 Q2 FY20 0.2% 0.1% North India Tea South India Tea Arabica Coffee 400 $c/kg 2
Slide 9: Performance at a Glance (Q2)
Performance at a Glance (Q2) In INR Cr INDIA US Coffee Other International Tata Coffee CONSOLIDATED (UK, Canada and (Subsidiary) Others) Revenue 914 271 442 207 1,834 Revenue Growth -3% -5% 4% [Underlying Growth] 8% 18% [-3%] [-2%] [+5%] Volume Growth 8% 4% 2% 7% [Branded] Key Brands Notes: a) Tata
Slide 10: Business Performance
Business Performance QUARTER ENDED SEPTEMBER 2019 9
Slide 11: India
India GROWTH DRIVERS OTHER UPDATES • Overall Tea sales grew 8% by value and volume in Q2 • Successful media campaign at IIFA 2019, Mumbai followed by +8% • Tata Tea Premium and Tata Tea Gold grew by high Web series with lead actors under Tata Tea Gold #DilKiSuno single digit in H1 and Q2 respectivel
Slide 12: USA
USA GROWTH DRIVERS OTHER UPDATES • Tetley gained ~1%* value market share in a declining black • EOC bags volume grew while the revenue declined US Coffee hot tea category aided by promotions and increased owing to higher promotion spends and increased distribution in the quarter competitive intensit
Slide 13: UK
UK GROWTH DRIVERS OTHER UPDATES • Tetley growth in Discounters is offset by decline in • Tetley Masterbrand relaunch campaign is gaining positive other channels response on TV, Social media and Digital media platforms • Teapigs’ grows in online channels. Efforts to • Green tea category continue the
Slide 14: Canada
Canada GROWTH DRIVERS OTHER UPDATES • Revenue growth mainly driven by Speciality teas • Tetley Regular tea facing headwinds • Tetley Supers has achieved ~2%* of Specialty tea • Tetley Super Tea new TVC aired on National TV in this segment now (value share) quarter. • Tetley maintaining its dominant
Slide 15: Tata Coffee (incl. Vietnam)
Tata Coffee (incl. Vietnam) GROWTH DRIVERS OTHER UPDATES 207Cr • Growth on account of Instant coffee and Vietnam • Coffee prices softening globally (Refer to Slide no. 7) Revenue • Higher Instant coffee volumes with strong • Profitability impacted by lower commodity prices and performances in South
Slide 16: JV - Tata Starbucks
JV - Tata Starbucks GROWTH DRIVERS OTHER UPDATES • 12 new stores opened this quarter • Launched MyStarbucksMyWay app 26% • • Gujarat market opening with 5 stores in one day Food 3.0 roll out • 100% single use plastic eliminated from consumables & in-store secondary packaging Revenue • Strong focus o
Slide 17: JV - NourishCo
JV - NourishCo GROWTH DRIVERS OTHER UPDATES • Tata Gluco Plus (TGP) continue to show strong momentum in AP and • TGP listed in Indian railways (AP and Telangana aided by sustained media investment Odisha) +8% • ‘Conde Nast Traveler – Himalayan Sparkling Top Restaurant Awards’ continue to build conne
Slide 18: Associate Companies- APPL & KDHP
Associate Companies- APPL & KDHP APPL • Good revenue growth of +7% achieved with improved average price realization over LY owing to a buoyant Orthodox tea market • The realisation for CTC teas continues to be sluggish • Profitability impacted due to increase in manpower costs • Although Orthodox te
Slide 19: Marketing Campaigns/Initiatives
Marketing Campaigns/Initiatives Tata Tea Gold is the official brand partner for “IIFA 2019” As part of #DilKiSuno campaign (Listen to your Heart), the brand gave its consumers a chance to witness the IIFA 2019, live in Mumbai! Tetley Australia is launching Kanan Devan Pure & Cold Infusions featuring
Slide 20: M&A Update
M&A Update Tata Chemicals Limited - Consumer Products Business • Merger process is on track • The Scheme had been filed by with SEBI and Stock Exchanges and the Company has received “No Adverse Observation Letters” from the Stock exchanges • Consent of unsecured creditors (more than 90% in value) ob
Slide 21: Financial Performance
Financial Performance QUARTER ENDED SEPTEMBER 2019 20
Slide 22: Highlights – Q2
Highlights – Q2 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 4% (+5% in constant currency terms) +8% +4% India Business grows (Vol +8%; Value +8%) REVENUE FROM 1,834 International Business degrows - 914 OPERATIONS 847 1,761 mainly US coffee and Australia partly offset by improvem
Slide 23: Highlights – H1
Highlights – H1 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 5% India Business grows (Vol +8%; Value +7%) +7% +5% International Business degrows - REVENUE FROM 1883 3,731 mainly US coffee and Australia, partly offset by OPERATIONS 3,563 improved performance in UK and Canada 1756
Slide 24: Financials: Standalone
Financials: Standalone Quarter Ended September PARTICULARS YTD September Q2FY20 Q2FY19 Change% INR Cr H1 FY20 H1 FY19 Change% 914 847 8% Revenue from operations 1,883 1,756 7% 125 123 1% EBITDA 273 290 (6%) 13.7% 14.6% % 14.5% 16.5% (2) - Exceptional items (10) - 134 162 (17%) PBT 292 378 (23%) 100
Slide 25: Financials: Consolidated
Financials: Consolidated Quarter Ended September PARTICULARS YTD September Q2FY20 Q2FY19 Change% INR Cr H1 FY20 H1 FY19 Change% 1,834 1,761 4% Revenue from operations 3,731 3,563 5% 237 210 13% EBITDA 505 460 10% 12.9% 11.9% % 13.5% 12.9% (1) (7) Exceptional items (10) (25) 192 189 1% PBT 415 406 2%
Slide 26: Taxation update
Taxation update Concessional Tax Rate – Impact on TGB • Results for the quarter have been prepared giving effect to reduction in tax rates in India • Statutory Tax rate of 25% (Concessional tax rate) applied for India • Favourable impact of tax rate reduction in the India branded and Non-branded bus
Slide 27: Balance Sheet
Balance Sheet PARTICULARS Consolidated INR Cr Sep’19 Sep’18 Mar’19 Total Equity 8,322 8,435 8,359 Goodwill 3,799 3,984 3,785 Fixed Assets 1,655 1,553 1,567 Lease assets (net) (27) - Working Capital 1,748 1,775 1,665 Operating Capital Employed 7,175 7,313 7,017 Other Non-operating Assets (mainly Inve
Slide 28: Segment-wise performance (Q2)
Segment-wise performance (Q2) PARTICULARS REVENUE RESULTS BRANDED BUSINESS REVENUE INR Cr Q2FY20 Q2FY19 Change% Q2FY20 Q2FY19 Change% 1% India Tea Branded Business 17% 52% Europe Tea Tea 1,300 1,248 4% 164 165* (1%) Other Markets-Tea Coffee 293 303 (4%) 58 38 52% 13% Others 7 6 10% (4) (7) US Coffee
Slide 29: Shareholding Pattern
Shareholding Pattern SHAREHOLDING PATTERN - September 2019 STOCK DATA BSE Ticker 500800 3% Promoter and NSE Ticker TATAGLOBAL Promoter group Market Capitalization (As of 30 Sep, 2019) INR 178bn 21% Foreign Institutional 34% Investors 3- month Return % (As of 30 Sep, 2019) +11% Insurance Number of Sh
Slide 30: Recognition
Recognition MANUFACTURING WORKPLACE SUSTAINABILITY Indore Packeting Centre won the prestigious Tata Starbucks awarded as the winners of Tata Coffee awarded ‘Best Indian Coffee’ at ‘Golden Peacock National Quality Award ‘India’s 100 Best Companies to Work For 4th Ernesto Illy International Coffee Awa
Slide 31: Sustainability Initiatives
Sustainability Initiatives TGBL joined UK Plastics Pact with commitment to 100% reusable, recyclable, compostable plastic packaging by 2025 Circular Himalayan water exported to USA is Economy Project Jalodari installed water recharge certified CarbonNeutral® by Natural structures in production units
Slide 32: For More Information
For More Information Visit our website: http://www.tataglobalbeverages.com Contact Us: Rakesh Sony rakesh.sony@tgbl.com +91 22 6121 8400 Ibrahim Lodhger ibrahim.lodhger@tgbl.com +91 80 6717 1200 Satya Muniasamy satya.muniasamy@tgbl.com +91 80 6717 1200 Write to us at: investor.relations@tgbl.com 31
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