Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q1 FY2020 Earnings Presentation
26 slides from Tata Consumer Products's earnings presentation, June 2019
Slide 1: Investor Presentation for Quarter ended June 2019
INVESTOR PRESENTATION for Quarter ended June 2019
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 1 Executive Summary 2 Strategic Pillars 3 Business Profile 4 Performance at a Glance 5 Business Performance 6 Quarterly Financial Performance 7 M&A Update 8 Recognition 9 Sustainability Initiatives 3
Slide 4: Executive Summary
Executive Summary 1 Consolidated Group Revenue of Rs. 1897 cr for quarter ended June 2019 grew by 5% 2 EBITDA of Rs. 268cr for quarter ended June 2019 grew by 7% while Profit before Tax grew by 3% 3 India Branded Business grew 7% by value and 8% by volume for the quarter 4 US Coffee grew 4% while ot
Slide 5: Strategic Pillars
Strategic Pillars Profitable Growth Investing for Operational Structure S&D Product Innovation Growth Efficiency Simplification Transformation • Merger of TCL Consumer Products • Non-black tea • New tea packaging • Redefined matrix Business with TGBL • Increasing innovations unit underway at archite
Slide 6: 40+ Countries | Consolidated Revenue: INR 1897 Cr | Branded Business: INR 1656 Cr
40+ Countries | Consolidated Revenue: INR 1897 Cr | Branded Business: INR 1656 Cr CANADA 54% INDIA Tetley, EUROPE Tata Tea Tata Tea, Tetley Tetley, Teapigs, Jemca, Vitax Himalayan, Fruski, Tata Cha 4% 17% 22% US ...AND Tetley, Teapigs, 3% OTHERS Tata Tea, Good Earth Eight O’ Clock Non-Branded Busine
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% 92.2 91.8 15% 13.4% 69.6 69.7 89.9 10.6% 69.1 10.0% 70.0 90.0 90.5 90.5 10% 67.4 87.6 65.0 66.7 85.0 5% 65.2 0% 60.0 80.0 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Apr May Jun Apr May Jun FMCG
Slide 8: Market Context
Market Context 2 years CAGR Commodity Costs# Market Growth Trends (MAT value basis)* 200 Rs/kg 200 $c/lb 146 157 152 US UK Canada 7% 150 +2% 150 131 119 100 +3% 99 97 106 96 100 4% 50 -14% 0 2% 50 Q1 FY17-18 Q1 FY18-19 Q1 FY19-20 Q1 FY17-18 Q1 FY18-19 Q1 FY19-20 North India Tea South India Tea Arabi
Slide 9: Performance at a Glance
Performance at a Glance In INR Cr INDIA US Coffee Other International Tata Coffee CONSOLIDATED (UK, Canada and (incl. Vietnam) Others) Revenue 969 261 493 204 1,897 Revenue Growth -1% -3% 5% [Underlying Growth] 7% 30% [-5%] [-3%] [4%] Volume Growth 8% 4% 3% [Branded] Key Brands Does not include inte
Slide 10: Business Performance
Business Performance QUARTER ENDED JUNE 2019 10
Slide 11: India
India GROWTH DRIVERS OTHER UPDATES • Overall Tea sales grew 7% by value for the quarter • Chakra sales witnessed marginal de-growth due to market +7% • Tata Tea Premium and Agni revenues grew in double slowdown in Tamil Nadu due to acute water crisis Revenue digits • Increased competitive intensity
Slide 12: US Coffee
US Coffee GROWTH DRIVERS OTHER UPDATES -1% • EOC’s Barista and Flavors of America both continue to gain • K-cups volumes declined Revenue distribution Growth • EOC bags volume grew while the revenue declined owing to higher promotion spends and increased competitive intensity -5% Underlying Revenue
Slide 13: Other International - UK
Other International - UK GROWTH DRIVERS OTHER UPDATES +2% • Tetley growth driven by good performance in • In UK, Tetley’s green tea value share declined owing to Revenue Discounters in UK category decline and intense competitive intensity Growth • Tetley Cold Infusions market share is now >20%* • In
Slide 14: Other International - Canada
Other International - Canada GROWTH DRIVERS OTHER UPDATES • Revenue growth driven by Speciality teas (Category grew +8%* • Tetley Regular tea facing headwinds by value and by volume in the quarter) • Plans to increase in store-display and • Tetley speciality gained 1%* value market share in this qua
Slide 15: Tata Coffee (incl. Vietnam)
Tata Coffee (incl. Vietnam) GROWTH DRIVERS OTHER UPDATES • Robust growth registered in both Instant Coffee and Robusta Plantation • Instant coffee prices softening +30% businesses. Coffee Trading sales at 2.5x of last year globally Revenue • Higher Instant coffee volumes with strong performances in
Slide 16: JV - Tata Starbucks
JV - Tata Starbucks GROWTH DRIVERS OTHER UPDATES • 5 new stores opened this quarter. • Strong focus on social media to drive consumer 23% • ‘Starbucks delivery’ revenue continues to grow engagement and sales with campaigns like Revenue • Awarded as ET’s “India’s 100 Best Companies to #ComedywithStar
Slide 17: JV - NourishCo
JV - NourishCo GROWTH DRIVERS OTHER UPDATES • Tata Gluco Plus had a strong momentum in AP and Telangana aided by • GTM transition for Himalayan from a hot summer and media investment PepsiCo network to VBL franchise +8% • Tata water Plus PET displayed robust growth benefiting from distribution expan
Slide 18: Associate Companies- APPL & KDHP
Associate Companies- APPL & KDHP APPL • Good revenue growth of +8% achieved with improved average price realization over LY owing to a buoyant Orthodox tea market • Operating profit negatively impacted due to provision made for expected wage increase • Although Orthodox tea prices are buoyant, the r
Slide 19: Quarterly Financial Performance
Quarterly Financial Performance QUARTER ENDED JUNE 2019 19
Slide 20: Highlights
Highlights In INR Cr STANDALONE CONSOLIDATED REVENUE: +7% India Business grows (Vol +8%; Value +7%) +5%* International Business degrows - REVENUE FROM 969 mainly US coffee (-5%), partly offset by OPERATIONS 909 1897 1803 improvement in UK (+4%) in constant currency terms Tata Coffee incl. Vietnam +3
Slide 21: Financials
Financials PARTICULARS STANDALONE CONSOLIDATED INR Cr Q1FY19 Q1FY20 Change% Q1FY19 Q1FY20 Change% REVENUE FROM 909 969 7% 1,803 1,897 5% OPERATIONS EBITDA 167 148 -11% 250 268 7% GROUP CONSOLIDATED NET EBITDA Margin 18.4% 15.3% 13.8% 14.1% PROFITS: PBT (Before Exceptional Higher by 11% mainly due to
Slide 22: Segment-wise performance
Segment-wise performance PARTICULARS REVENUE RESULTS BRANDED BUSINESS REVENUE 1% INR Cr Q1FY19 Q1FY20 Change% Q1FY19 Q1FY20 Change% 16% India Tea Branded Business UK Tea 15% Other Markets-Tea 53% Tea 1,314 1,373 4% 210 198 -5% US Coffee Other Markets-Coffee Coffee 292 283 -3% 44 51 17% 15% Others 10
Slide 23: M&A Update
M&A Update Tata Chemicals Limited - Consumer Products Business • Merger process is on track as per the scheduled timeline • The Scheme application is currently under review with SEBI and the Observation Letter, if any, from SEBI is awaited • Post approval from SEBI, TGB would file its application wi
Slide 24: Recognition
Recognition MANUFACTURING WORKPLACE SUSTAINABILITY Indore Packeting Centre won the prestigious Tata Starbucks awarded as the winners of Tata Coffee awarded ET’s ‘Best Green ‘Golden Peacock National Quality Award ‘India’s 100 Best Companies to Work For Business Award’ for sustainable and green 2018-1
Slide 25: 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 26: 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 26
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