Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2021 Earnings Presentation
40 slides from Tata Consumer Products's earnings presentation, Aug 5, 2020
Slide 1: Cover letter to stock exchanges
August 5, 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
Slide 2: For the Quarter ended June 2020
For the Quarter ended June 2020 5th August’20
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 Executive COVID-19 Update Integration Update Summary Business Performance – Business Performance – Responsible Business India International Financial Performance Outlook and Priorities
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 Reach to almost 200mn revenue in FY20 and current households in India and market cap of ~₹40k Cr. dist
Slide 6: Executive Summary
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Slide 7: Executive Summary
Executive Summary • Consolidated Revenue grew by 13% to INR 2,714Cr with volume growth across businesses, amidst extremely challenging environment with lockdowns and supply chain disruptions globally. • Consolidated EBITDA grew by 37% to INR 486Cr. • India Beverages (including NourishCo#) grew by 11
Slide 8: Revenues at a Glance
Revenues at a Glance International Beverages In ₹ Cr India India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Beverages Foods Tea (International) (incl. Vietnam) Revenue 1,000 589 358 475 34 229 2,714 Revenue Growth 11% 19% 37% 14% -56% 12% 13% [Underlying growth]
Slide 9: Performance at a Glance
Performance at a Glance ₹ 2,714 Cr. ₹ 486 Cr. ₹ 436 Cr. ₹ 346 Cr. ~₹ 1,969 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 13% 37% 42% 82% Margin% 17.9% 16.1% 12.7% Margin expansion +310 bps +320 bps +480 bps (Y-on-Y) 3.55 (EPS) EPS / Cash EPS 4.11 (Cash EPS) +89% (EPS) Grow
Slide 10: Sector Outlook
Sector Outlook Weak economic and sector demand in India Volatile commodity prices Tea Prices Coffee Prices 10.0 % 7.3 247 6.5 206 119 5.5 5.3 190 6.4 6.6 $c / KG 106 96 $c/ LB 5.2 2.7 4.4 4.1 219 3.1 ₹ / KG Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21E 154 151 79 $c/ LB 64 ₹ / KG 54 -18 106 106 98 -20 -21 Q1
Slide 11: Quarterly Category Performance
Quarterly Category Performance Mixed performance across categories and regions • Due to the Covid crisis, there has been pantry loading, leading to US UK Canada India upsurge in tea and coffee demand in International Markets. +32.4% • Regular black tea continues to be the largest category share in t
Slide 12: COVID-19 Update
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Slide 13: COVID-19: Business Update
COVID-19: Business Update Business Continuity Supply Chain Resilience Digital Acceleration • All factories and plantations are now operational • Secure raw materials and packaging supply chains; • Remote third party audits and remote management of Ongoing risk management to ensure supply continuity
Slide 14: Integration Update
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Slide 15: Recap- Creation of Tata Consumer Products
Recap- Creation of Tata Consumer Products Merger of consumer products business of TCL with TGBL has led to creation of Rationale for Merger Tata Consumer Products Limited (TCPL) • Creation of a sizeable Consumer company with Tata Chemicals Tata Global Beverages Tata Consumer Products Limited enhance
Slide 16: Key Milestones and Integration Objectives
Key Milestones and Integration Objectives Pre-merger Post-merger Integration May’19-Feb’20 Feb’20-Dec’20 Completed In Process May’19 Public Announcement • Integrated organization structure and • Build multi-category Sales & Distribution of Merger operating model to enable profitable growth organizat
Slide 17: Sales & Distribution Redesign
Sales & Distribution Redesign Elements of RTC Design Impact Feet-on-Street Internal Org Direct Reach • Common salesman to sell the full portfolio • Integrated internal organization across Food and 2x in 12 months • Enhance front line sales force – 2x of frontline Beverage division sales officers and
Slide 18: Business Performance - India
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Slide 19: India: Beverages (Tea and Coffee)
India: Beverages (Tea and Coffee) Performance commentary Tata Tea Gold ties • April sales significantly • Increase in profits due to up with Amazon for impacted followed by high better price realization, promotions of movie double-digit growth in May efficient management of Shakuntala Devi. Multi-pl
Slide 20: India Foods
India Foods Performance commentary +19% • High double-digit growth achieved each month of the • Increase in profits due to better gross margin, lower trade spends and lower Hosted a daily quiz on 'India' for children on Revenue Growth quarter, despite operational the MyJio App. Brand engaged with ~
Slide 21: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) # Acquisition Update • Completed acquisition of entire 46 Cr • Integration with TCP stake of PepsiCo in NourishCo underway and Rights over the “Gluco Revenue Plus/Gluco+” brand at a total • New organization structure consideration of Rs 29 Cr in place with Vikram Grover a
Slide 22: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) ICD Theni won the Star Award in the ‘Safety and Performance commentary Health Awards’ category organized by National Safety Council - Tamil Nadu chapter +12%# • Topline grew by 12% (10% in constant currency terms) led Extractions • Overall extraction busin
Slide 23: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary -87% • Despite challenges ~60% stores have now re-opened. • Opened India’s first Starbucks Drive through at Zirakpur near Chandigarh Revenue decline • Revenue growing every month. June revenue was • Activated alternate operating ~27% of last year levels cha
Slide 24: Business Performance - International
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Slide 25: UK
UK Performance commentary 12% • Strong revenue growth of 12% with volume growth of 7% • Improved profits on account of higher sales and improved gross margins Revenue Growth • Discounter channel continues to be biggest growth driver, • Continued investing behind with growth across all Key the brand
Slide 26: USA
USA Performance commentary 26% • Coffee: Robust revenue • Accelerated growth in e- growth 26% in value and 27% commerce, especially in in volume terms; growth seen Grocery “Click & Collect” Coffee Revenue across both Branded and Growth Private Label Coffee business. • Food service (Empirical) busine
Slide 27: Canada
Canada Performance commentary 32% • Strong revenue growth of 32% and volume growth of 28% largely driven by • Food service sales still very soft Revenue Growth pantry loading and retailer • Improved profits driven by re-stocking sales and reduced overheads • Growth continues to outpace the category
Slide 28: Brand Campaigns
Brand Campaigns #HarDinHaldi, campaign on social media with easy recipes to help you incorporate Haldi to your daily routine in a fun way. Tetley UK Cold Infusions campaign “Add a little fruitiness to your water” ran across Tetley Canada cold Infusions campaign focused on “Unboring” your cold water”
Slide 29: Responsible Business
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Slide 30: Sustainability: Value Chain, Communities & Climate
Sustainability: Value Chain, Communities & Climate 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 Trustea Program verifies 680 A proud supporter of Mn. kgs of Indian Tea, Canadian Cancer Society positively im
Slide 31: Financial Performance
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Slide 32: Highlights – for the quarter ended June
Highlights – for the quarter ended June 20 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) 322 REVENUE: 141 1,605 2,714 Group Revenue grew by 13% 1,464 Revenue from 2,392 • India beverages (incl. Nourishco #) grew by 11%, operations Tea business grew by 8%. • India foods higher by 19%. • International B
Slide 33: Financials: Standalone and Consolidated
Financials: Standalone and Consolidated Standalone Profit and Loss statement Consolidated Q1 FY21 Q1 FY20 Change % (all nos. in ₹ Crores) Q1 FY21 Q1 FY20 Change % 1,605 1,464 10% Revenue from operations 2,714 2,392 13% 326 234 39% EBITDA 486 354 37% 20.3% 16.0% 4.3% % 17.9% 14.8% 3.1% 296 209 42% EB
Slide 34: Segment-wise Performance (for the quarter ended June 2020)
Segment-wise Performance (for the quarter ended June 2020) Revenue - Branded business Particulars Segment Revenue Segment Results Q1 Q1 Change Q1 Q1 INR Cr Change (%) 41 % India beverages FY21 FY20 (%) FY21 FY20 24 % India foods India Beverages 1,000 901 11% 215 138 56% 35 % International beverages
Slide 35: Outlook and Priorities
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Slide 36: Outlook
Outlook Macros • Covid-19 pandemic continues to spread globally and in India with new disease hotspots (16.5mn globally & 1.5mn in India) • GDP forecast for 2020 continues to be grim (Global: ~ -5%, India: ~-6% as per latest estimates) • Consumer sentiments still at significantly lower levels as com
Slide 37: Focus & Priorities
Focus & Priorities This image cannot currently be display ed. Build on Drive Digital & Unlock Create Future Explore New Care for our Core Business Innovation Synergies Ready Org. Opportunities Society 36
Slide 38: Thank You
Thank You 37
Slide 39: 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
Slide 40: Shareholding Information
Shareholding Information Quarter Ended June’20 Pattern as on July 31, 2020 Stock data BSE Ticker 500800 Others, 3.03 Promoter and MFs/UTI/AIFs, NSE Ticker TATACONSUM promoter 13.52 Group, Market Capitalization (31 July 2020) ₹ 394 Bn. 34.68 Number of Shares Outstanding 921.55 Mn. Individual, 21.02 F
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