Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q2 FY2023 Earnings Presentation
48 slides from Tata Consumer Products's earnings presentation, Oct 20, 2022
Slide 1: Investor Presentation
Investor Presentation For the quarter ended September 2022 20th October 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 ~₹74k* Cr dis
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 11% YoY (10% constant currency), despite a difficult demand environment. On a 3-year CAGR basis, this translates to ~13% revenue growth. Consolidated EBITDA for the quarter grew 4%, with EBITDA margin down 100bps YoY, impacted by In
Slide 7: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 8: Key Businesses snapshot – Q2FY23
Key Businesses snapshot – Q2FY23 India Business International Business In ₹ Cr India Beverages India Foods US Coffee International Tata Coffee (incl. Consolidated (unless specified) Tea Vietnam) Revenue 1,238 922 376 463 342 3,363 Revenue Growth -2% 29% 25% -4% 41% 11% Constant currency growth 16% -
Slide 9: Key Businesses snapshot – H1FY23
Key Businesses snapshot – H1FY23 India Business International Business In ₹ Cr India Beverages India Foods US Coffee International Tata Coffee (incl. Consolidated (unless specified) Tea Vietnam) Revenue 2,547 1,758 732 944 644 6,690 Revenue Growth 1% 24% 23% -1% 33% 11% Constant currency growth 16%
Slide 10: Group Performance at a glance – Q2FY23
Group Performance at a glance – Q2FY23 ₹ 3,363 Cr. ₹ 438 Cr. ₹ 370 Cr. ₹ 389 Cr. ₹ 303 Cr. ~₹ 2,013 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 11%[10%] # 4% 2% 36% 2% Margin% 13.0% 11.0% 11.6% 9.0% Margin expansion -80 bps -100 bps +220 bps -80 b
Slide 11: Group Performance at a glance – H1FY23
Group Performance at a glance – H1FY23 ₹ 6,690 Cr. ₹ 897 Cr. ₹ 774 Cr. ₹ 666 Cr. ₹ 598 Cr. ~₹ 2,013 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 11%[10%]# 9% 10% 37% 19% Margin% 13.4% 11.6% 10.0% 8.9% Margin expansion -20 bps +0 bps +190 bps +60 bp
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: Making consistent progress on reach
Making consistent progress on reach Strong impetus reach Alternate channels fuelling Growth and Innovation agenda 0.6M +18% YoY Mar’22 Sep’22 Direct reach Super stockists1 Modern Trade E-commerce continues to be a strong pillar & testing ground for NPDs 9.2% of Sales YoY NPD contribution Ecommerce 1
Slide 15: Powering our brands – India Packaged Beverages
Powering our brands – India Packaged Beverages Tata Tea Premium, celebrated 75 years of India’s Independence with a special collection of Tin cans as well as Teacups and plates commemorating great moments of Tata Tea Gold brought to life the story of Premalata pride from India’s Agarwal, the first I
Slide 16: Powering our brands – India Foods
Powering our brands – India Foods Tata Sampann launched a new campaign with Manoj Bajpayee to build awareness about the goodness of unpolished pulses and the promise of Tata Sampann Market share Salt 128bps1 Tata Sampann Spices has launched a customized mix for AP and Telangana, to better serve the
Slide 17: Continuing the momentum on innovation
Continuing the momentum on innovation Tata Tea Gold Saffron Sonnets premium R&G Tata Sampann Tata Sampann Tata Soulfull Millet coffee Shahi Besan Plus Hing Muesli Signature Assam tea with Launch of new season range with Launch of Blended besan Launch of Hing in pure spices Launch of the new enhanced
Slide 18: Tata Q relaunch - Tata Sampann Yumside & Tata Raasa
Tata Q relaunch - Tata Sampann Yumside & Tata Raasa Post acquisition of TSFL, the strategic direction on the ready foods portfolio was to establish leadership in the domestic market and foray into international markets Domestic portfolio revamped in line with category and consumer needs Re-launch
Slide 19: A look at our F&B platforms
A look at our F&B platforms Current core Pantry platform Liquids platform Mini-meals platform Horizon 3 Tea, Coffee Pulses, spices Water Breakfast cereals Protein platform Salt Besan, poha, other staples RTDs RTEs RTCs Snacks Dry Fruits 1919
Slide 20: Another addition to the Protein platform
Another addition to the Protein platform The Indian protein supplement market It is expected to grow at a CAGR of was estimated at INR 2000Cr in ‘211 ~18% over 2022-27, reaching INR 5000Cr by ‘271 The plant-based protein supplement market growth is being driven by 3 key factors: Growing interest Act
Slide 21: New engines of growth
New engines of growth YoY Revenue growth – Q2FY23 21
Slide 22: ESG Report – For Better Living
ESG Report – For Better Living For the report click here 22
Slide 23: Macro environment
) CO ORRIN SC CC Macro environment
Slide 24: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 233 246 229 224 20.1 $c / KG $c/ LB 194 210 24.5 180 ₹ / KG 13.5 212 12.2 195 8.7 188 187 115 6.9 5.4 6.2 4.4 149 $c/ LB 2.5 8.4 6.6 4.9 5.5 3.7 4.1 2.2 ₹ / KG -2.9 0.7 87 96 -2.3 0.5 1.8 1.5 102 11
Slide 25: Market context – category growth rates
Market context – category growth rates US UK Canada India • US Markets saw category growth in +8.6% +8.8% Coffee (both Bags and K-cups) and Tea +7.3% on account of price increases . In volume terms the category has +5.8% declined. +5.2% • UK – Tea category in both regular and Fruit & Herbal saw a de
Slide 26: Business performance – India
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance — India
Slide 27: India Packaged Beverages
India Packaged Beverages Performance commentary Tata Tea Gold -7% • Revenue for the quarter declined 7% primarily led by pricing corrections and overall softness in the category • Margins for India beverages expanded YoY, led by lower commodity costs. launched its Festive Revenue Growth Edition seri
Slide 28: India Foods
India Foods Performance commentary Tata Salt Immuno launched with new and improved packaging to better +29% • Salt revenue grew 27% during the quarter on a high base (Q2FY22 salt grew 20%). • Tata Sampann portfolio delivered strong growth of 37%, led by broad- Revenue Growth based performance across
Slide 29: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary 138Cr • Delivered strong revenue growth of • Himalayan revenue grew 72% YOY Flagship brands Tata Gluco Plus 64% during the quarter. and continued to remain EBIT+ve and Tata Copper + Water continue during the quarter. to be supported in key markets R
Slide 30: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +39%# Extractions • Revenue for the quarter grew 39%# • Overall extractions business grew by led by strong growth across both 26% driven by both the domestic and Revenue Growth the extractions and the plantations the Vietnam b
Slide 31: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 99% • Revenue for the quarter saw strong growth of 57%, led by normalized store operations and a revival in out- • Opened 25 new stores during the quarter – highest-ever quarterly store openings in its history. Stores re-opened* of-home consumption. Pilotin
Slide 32: Business performance – International
0 OOO Ss 5 2 OCR SO Business performance - International
Slide 33: UK Performance commentary
UK Performance commentary -7% • Revenue for the quarter declined 7% (constant currency) owing to category softness driven by • Tetley gained share in everyday black segment in the latest 4-week Revenue Growth# period. significant inflation. • Teapigs declined 16%, cycling an • TCPL became the third-
Slide 34: USA
USA Performance commentary +16% • Coffee: Revenue for the quarter • Tea: Revenue grew 9% (constant grew 16% (constant currency) driven currency) led by Tetley and Teapigs by EOC gaining share. outperforming their respective Coffee Revenue categories. Growth^ • EOC K Cups grew 2X the category • Teapi
Slide 35: Canada
Canada Performance commentary 16% • Revenue for the quarter grew 16% (constant currency). • New distribution for Tata tea is helping the brand grow rapidly, albeit off a small base. Revenue Growth^ • The tea category growth is being led by pricing as inflation impacts volumes. 11% Revenue growth in
Slide 36: Financial Performance
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Slide 37: Performance Highlights - Q2FY23
Performance Highlights - Q2FY23 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) • Revenue at Rs 3,363 Crs • India Business +9% 330 3,363 Revenue from 143 3,033 • International Business +6% (U/L) 2,131 operations 1,988 • Non branded Business +30% (U/L) +7% +11% [10%] • EBITDA at Rs 438 Crs, +4% and EBITD
Slide 38: Financials: Consolidated
Financials: Consolidated Quarter ended Sep’22 Profit and Loss statement Year to date Sep’22 Q2FY23 Q2FY22 Change % (all nos. in ₹ Crores) H1FY23 H1FY22 Change % 3,363 3,033 11 % Revenue from operations 6,690 6,042 11 % 438 420 4% EBITDA 897 823 9% 13.0 % 13 9% % 13.4 % 13.6 % 365 351 4% EBIT 751 687
Slide 39: Financials: Standalone
Financials: Standalone Quarter ended Sep’22 Profit and Loss statement Year to date Sep’22 Q2FY23 Q2FY22 Change % (all nos. in ₹ Crores) H1FY23 H1FY22 Change % 2,131 1,988 7% Revenue from operations 4,208 3953 6% 336 269 25 % EBITDA 643 543 18 % 15.8 % 13.5 % % 15.3 % 13.7 % 300 233 29 % EBIT 572 472
Slide 40: Segment-wise Performance Q2FY23
Segment-wise Performance Q2FY23 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q2 FY23 Q2 FY22 Change Q2 FY23 Q2 FY22 Change 72% India Business (%) (%) 28% International Business India Business 2,160 1,978 9% 308 245 26% International Business 839 781 7% 60 110 (46)% Tot
Slide 41: Segment-wise Performance H1FY23
Segment-wise Performance H1FY23 Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr H1FY23 H1FY22 Change H1FY23 H1FY22 Change 72% India Business (%) (%) 28% International Business India Business 4,305 3,950 9% 581 491 18% International Business 1,675 1,549 8% 164 206 (20)% To
Slide 42: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 43: To conclude
To conclude Macros Inflation continues to weigh on demand in the International markets, even as India has been relatively more resilient, except for rural. The US Fed’s monetary tightening is causing unprecedented strength in USD – impacting cross-currency exposures. The impact of inflation an
Slide 44: Other
Slide 45: Awards & recognition
Awards & recognition 1. Most Chosen FMCG Brand 2. Most Purposeful Brand TCPL has been ranked in Kantar India Tata Tea awarded as the Most Brand Footprint Report 2022 as the 5th Purposeful FMCG brand in India by Most Chosen FMCG Brand in India Kantar Brandz 2022 Most Valuable Indian Brands 3. Brand o
Slide 46: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 30th September, 2022 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (Sep 30, 2022) ₹ 739.9 bn 20% 35% Number of Shares Outstanding 921.6 Mn MFs/ UTI/ AIFs 7% Insura
Slide 47: Q&A
TATA CONSUMER PRODUCTS PREMIUM TAA oo uuside SOULFULL’ aa COLD, E x har Se mae Q&A TATA CONSUMER PRODUCTS a ——i( cee
Slide 48: Thank You
Thank You For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Retail investors - Contact Call us at investor.relations@tataconsumer.com +91-22-61218400 For media queries nidhi.verma@tataconsumer.com satya
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