Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q4 FY2022 Earnings Presentation
51 slides from Tata Consumer Products's earnings presentation, May 4, 2022
Slide 1: Investor Presentation
Investor Presentation For the quarter and fiscal year ended March 2022 4th May 2022
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 Executive summary Performance overview Progress against strategic priorities Macro environment Business performance – Business performance India – International Financial performance Concluding remarks Other 3
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 ₹ 12.4K crore consolidated Reach north of 200mn revenue in FY22 with current households in India and market cap of ~₹72k* Cr. di
Slide 5: Executive Summary
) CO ORRIN SC CC Executive Summary TATA CONSUMER PRODUCTS
Slide 6: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 6%, bringing FY22 revenue growth to 9% (net of International Foodservice business exits). On a 2-year CAGR basis, this translated to 15% revenue growth in FY22, net of International Foodservice business exits. Consolidated EBITDA fo
Slide 7: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 8: Key Businesses snapshot – Q4FY22
Key Businesses snapshot – Q4FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 1,190 764 355 535 303 3,175 Revenue Growth -1% 19% 13% 3% 8% 5%[ 6%] Constant currency growth 11% 3% 7% 4%[ 6%
Slide 9: Key Businesses snapshot – FY22
Key Businesses snapshot – FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 5,001 2,913 1,295 2,040 1,070 12,425 Revenue Growth 10% 19% 0% 1% 11% 7%[9%] Constant currency growth 0% -3% 11%
Slide 10: Group Performance at a glance – Q4FY22
Group Performance at a glance – Q4FY22 ₹ 3,175 Cr. ₹ 458 Cr. ₹ 403 Cr. ₹ 239 Cr. ₹ 254 Cr. ~₹ 2,486 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 5%[6%]# 45% 54% 222% 89% Margin% 14.4% 12.7% 7.5% 8.0% Margin expansion +400 bps +410 bps +510 bps +360
Slide 11: Group Performance at a glance – FY22
Group Performance at a glance – FY22 ₹ 12,425 Cr. ₹ 1,749 Cr. ₹ 1,508 Cr. ₹ 1015 Cr. ₹ 1056 Cr. ~₹ 2,486 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 7%[9%]# 11% 12% 9% 12% Margin% 14.1% 12.1% 8.2% 8.5% Margin expansion +50 bps +60 bps +20 bps +40
Slide 12: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 13: 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 13
Slide 14: New milestones in S&D transformation
New milestones in S&D transformation Direct reach Total Numeric reach1 +18% Increase +15% Increase 0.6M By Mar’23 Mar’22 Tea Salt Digital transformation Distributors Rural/Semi-Urban distributors DMS DMS Lite SSFA All numbers are for FY22 vs FY21 unless specified otherwise 1 Increase in average numb
Slide 15: Winning in alternate channels – MT & E-commerce
Winning in alternate channels – MT & E-commerce A fit for purpose assortment Modern trade business crosses 1000 cr. MT up 30% y-o-y E-commerce market share for Tea at 41.9% way ahead of competition E-commerce up 56% y-o-y E- commerce channel (% of sales) 7.3% 5.2% 2.5% FY20 FY21 FY22 All numbers are
Slide 16: Powering our brands
Powering our brands India business1 A&P FY22 +29% YoY Tata Tea Premium continued its hyperlocal campaign by Tata Coffee Grand activated the festival of Pongal in the state of TN with a celebrating the unique diversity of our nation with the ‘Desh ki TVC led campaign which celebrated the sounds of fe
Slide 17: Powering our brands
Powering our brands The new Tata Salt Lite and Superlite TVC addresses a relevant consumer tension to reduce their salt intake by Guaranteed quality, authentic taste, hygienically packed; pivoting to an alternative Shuddh by Tata Salt is an iodized salt that is sourced from Market share option of lo
Slide 18: Driving premiumization
Driving premiumization Tata Sampann Values Added Salt Volumes Revenue Coffee Tea TTG care as % of TTG Volumes All numbers for FY22 vs FY21 18 18
Slide 19: Growth across key metrics
Growth across key metrics India Packaged Beverages India Foods International Beverages Revenue growth Revenue growth Revenue growth (like for like, net of exits) 32.8% 18.3% 17.7% 11.9% 2-year CAGR 11.6% 2-year CAGR 2-year CAGR 6.6% 6.4% 19% 18% 0.4% 6% 0.1% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 F
Slide 20: Continuing the momentum on innovation – FY22
Continuing the momentum on innovation – FY22 Innovation to sales contribution FY22 vs FY21 20 20
Slide 21: Creating an agile and efficient supply chain
Creating an agile and efficient supply chain Transformation journey to an integrated and digitised supply chain well underway Optimization of India Cost-saving from Digital journey well Future-readiness Integrated Production efficiencies in the underway IOT enabled flagship factory & Delivery networ
Slide 22: Global Simplification Plan announced…
Global Simplification Plan announced… Proposed Transactions Consolidation of minority interest from Tata Coffee & TCP UK Group to TCPL #1 #2 TCL combines with TCPL /WOS Purchase of minority interest in of TCPL, through a composite UK business from Tata scheme of demerger and Enterprise Overseas (TEO
Slide 23: …to unlock synergies and value for shareholders
…to unlock synergies and value for shareholders Operational efficiencies ► Align corporate structure with management & administrative structures 01 for management, legal & administrative costs ► Significant reduction in # of entities ► Converge the minority interests of subsidiaries at TCPL level 02
Slide 24: New engines of growth
New engines of growth Revenue growth – FY22 24
Slide 25: Progress on inorganic acquisitions
Progress on inorganic acquisitions Tata Soulfull NourishCo 1st Himalayan broke even at Tata Copper Plus Water Expanded distribution 100-day integration Soulfull to Tata Soulfull EBIT level for the 1st time scaled to > 3x in FY22 by 80% rebranding since inception Forayed into new Signed an MOU with I
Slide 26: Striving for better - Sustainability efforts
Striving for better - Sustainability efforts Amazon’s climate-friendly pledge helps consumers discover and shop for more sustainable products on their platform. Our Tata Tea took an initiative to spread family of brands including Tetley, Good Earth awareness about water conservation & Teapigs all ca
Slide 27: Macro environment
) CO ORRIN SC CC Macro environment
Slide 28: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 233 247 24.5 $c / KG 236 $c/ LB 194 194 20.3 180 8.5 8.8 6.6 3.0 1.6 12.2 215 ₹ / KG 0.5 6.9 4.2 128 0.5 5.5 5.4 188 187 0.6 4.9 4.0 158 111 -9.1 -2.9 -2.3 149 $c/ LB -2.0 -7.4 -6.3 -7.7 -5.0 ₹ / KG
Slide 29: Market context – category value growth rates
Market context – category value growth rates US UK Canada India • Regular black tea category saw a decline in international markets, driven by increased mobility that led to a fall in at- home consumption. • Non-black tea (Fruit & Herbal, Specialty, Decaf, Cold Infusions, etc.) saw a marginal +6.7%
Slide 30: Business performance – India
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance — India
Slide 31: India Packaged Beverages
India Packaged Beverages Performance commentary Continuing the innovation agenda , +6% • Revenue for the quarter declined 4%, with 2% volume growth, on an elevated base that saw 53% • EBIT margin for India Beverages (old segment classification) was up 400bps YoY in FY22.3 we launched an FY22 Revenue
Slide 32: India Foods
India Foods Tata Q launched 6 new variants - Hot & Spicy Performance commentary +19% Noodles, Pepper Masala • Salt revenue grew 15% during the • Tata Sampann continued its strong Noodles, Classic Chicken quarter, on a high base of last year trajectory in Q4, growing volumes Seekh Kebab, Spicy (Q4FY2
Slide 33: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) 221% Performance commentary 191% 191% Sales as a % of PY 344Cr 186% • Revenue for the quarter grew • The business unlocked new 151% 51% on a high base that saw 86% geographies and markets with good growth last year. consumer acceptance. 109% FY22 Revenue 82% • For the yea
Slide 34: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +11%# • Revenue for the quarter grew 7% Extractions led by coffee plantations & the • Overall extraction business grew extractions business in Vietnam. 19% in FY22 driven by both Vietnam FY22 Revenue extractions (premiumizatio
Slide 35: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 96% • Revenue grew 32% during the quarter, partially impacted by the third wave of COVID-19. Growth • Added 50 new stores and entered 8 new cities during the year. Stores re-opened* back on a strong trajectory led by • Q4FY22 marked the highest number swift
Slide 36: Business performance – International
0 OOO Ss 5 2 OCR SO Business performance - International
Slide 37: UK
UK Performance commentary -2% • Revenue for the quarter grew 5%# with 6% volume growth. • We gained market share in F&H category driven by strong performance of Good Earth, Tetley Supers and FY22 Revenue • Revenue for the year declined 2%# Tetley Herbals innovations. Growth# on an elevated base that
Slide 38: USA
USA Performance commentary Flat • Coffee: Revenue for the quarter grew 11% (constant currency) driven by strong performance in K-cups • Tea (excluding Empirical): Revenue declined 8% (constant currency) in FY22 on an elevated FY22 Coffee Revenue base of 16% growth in FY21. Growth^ • Revenue for the
Slide 39: Canada
Canada Performance commentary -7% • Revenue for the quarter declined 1% (constant currency) on a high base (6% growth in Q4FY21). • Tetley Supers range continued to register strong performance during the quarter. FY22 Revenue Growth^ • Revenue declined 7% (constant • During the year, the ecommerce T
Slide 40: Financial Performance
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Slide 41: Highlights – for the quarter ended Mar'22
Highlights – for the quarter ended Mar’22 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: • Revenue at Rs 3,175 Crs, net of exits +6% (at Revenue from 98 138 3,175 constant currency +6%) operations 1,948 3,037 1,850 • India Branded Business +6% • International Business (U/L +6%), net of +5% +5%
Slide 42: Financials: Standalone
Financials: Standalone Quarter ended Mar’22 Profit and Loss statement Financial Year ended Mar’22 Q4FY22 Q4FY21 Change % (all nos. in ₹ Crores) FY22 FY21 Change % 1,948 1,850 5% Revenue from operations 7,932 7,154 11 % 288 142 102 % EBITDA 1,111 919 21 % 14.8 % 7.7 % % 14.0 % 12.8 % 253 109 132 % EB
Slide 43: Financials: Consolidated
Financials: Consolidated Quarter ended Mar’22 Profit and Loss statement Financial Year ended Mar’22 Q4FY22 Q4FY21 Change % (all nos. in ₹ Crores) FY22 FY21 Change % 3,175 3,037 5 %1 Revenue from operations 12,425 11,602 7 %2 458 317 45 % EBITDA 1,749 1,569 11 % 14.4 % 10.4 % % 14.1 % 13.5 % 386 251
Slide 44: Segment-wise performance – Q4FY22
Segment-wise performance – Q4FY22 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q4 FY22 Q4 FY21 Change Q4 FY22 Q4 FY21 Change 69% India Business (%) (%) 31 % International Business India Business4 1,954 1,842 6% 258 141 83% International Business 890 880 1%1 128 109 18%
Slide 45: Segment-wise performance FY22
Segment-wise performance FY22 Revenue - Branded business Particulars Segment Revenue Segment Results 70 % India Business ₹ Cr FY22 FY21 Change FY22 FY21 Change (%) (%) 30 % International Business India Business4 7,914 7,003 13% 1,012 876 16% International Business 3,336 3,508 (5%)1 478 467 2% Total
Slide 46: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 47: To conclude
To conclude Macros The recovery following the third wave of the pandemic in India has been swift. The geopolitical situation is exacerbating inflationary pressures. Inflation and its impact on consumer behaviour is going to be the key monitorable going forward in India. With the normalization of
Slide 48: Other
Slide 49: Awards & recognition – Q4FY22
Awards & recognition – Q4FY22 1. Corporate Governance 2. Grocery Aid Award Featured in the ‘Leadership’ category TCPL got recognized with a Gold at on the Indian Corporate Governance Grocery Aid Award for the support assessment for second year in a row extended to Grocery Aid UK – a charity by IiAS
Slide 50: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st March, 2022 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (March 31, 2022) ₹ 716.4 bn Individual 35% 22% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 6% Insuran
Slide 51: 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
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