Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Q2 FY2018-19 Earnings Presentation
28 slides from Tata Consumer Products's earnings presentation, Dec 5, 2018
Slide 1: Cover letter to stock exchanges on analyst meet presentation
December 5, 2018 National Stock Exchange of BSE Ltd. Calcutta Stock Exchange India Ltd. Corporate Relationship Dept, Association Ltd., Exchange Plaza, 5th Floor, 1st Floor, New Trading Wing, 7, Lyons Range, G Block, Bandra-Kurla Complex, Rotunda Building, PJ Towers, Kolkata – 700 001 Bandra East, Mu
Slide 2: Investor Presentation December 2018
INVESTOR PRESENTATION DECEMBER 2018 5th and 6th December 2018
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 COMPANY PROFILE KEY HIGHLIGHTS OF THE QUARTER REGIONWISE PERFORMANCE FINANCIAL OVERVIEW 3
Slide 5: Our journey
Our journey 1960s Investment in Plantations in India 1980s Internal Domestic Acquisition restructure & branded of Eight JV formed exits from loss Acquisition O’clock Acquisition New Corporate play in tea with making of Tetley Coffee of Vitax Identity formed Starbucks businesses 1960‐ 2000 2005 2006
Slide 6: Our Brand Positioning
Our Brand Positioning EUROPE AND US UK OTHER MARKETS INDIA 5
Slide 7: Business Profile
Business Profile 88% OF OUR SALES COMES THROUGH OUR BRANDED BUSINESS Total Turnover ‐ 2018 Brand‐wise 12% 14% Turnover ‐ 2018 Branded India Tea Brands Business 13% 46% Tetley Non Branded Business Eight O'Clock 27% 88% Others & Speciality Brands Based on full year numbers as on March 2018 6
Slide 8: Consolidated Financials – Quarter ended 30th September 2018
Consolidated Financials – Quarter ended 30th September 2018 Group Net Profit Revenue (In USD mn) PBT (In USD mn ) (in USD mn) +7%* +8%* Q2 FY17-18 Q2 FY18-19 +4% Q2 FY17-18 Q2 FY18-19 Q2 FY17-18 Q2 FY18-19 +3% +19% ‐9% ‐ 4% 235 245 209 216 26 30 27 27 26 + 6% ‐34% 21 27 29 2 1 (3) (4) Group Net Prof
Slide 9: Consolidated Financials – YTD 30th September 2018
Consolidated Financials – YTD 30th September 2018 Group Net Profit Revenue (in USD mn) PBT (in USD mn) (in USD mn) +8%* +9%* YTD FY17-18 YTD FY18-19 YTD FY17-18 YTD FY18-19 YTD FY17-18 YTD FY18-19 +5% +5% 3% ‐ 3% +5% 472 495 418 441 60 62 58 56 43 41 ‐ 40% 56 56 6 4 Branded Non Branded Group (8) (10
Slide 10: Key Highlights for the 2nd Quarter
Key Highlights for the 2nd Quarter Positives Improvement in operating performance aided by topline growth in Branded Business India grows at +7%, driven by volume growth of +9% (Highest in the last 8 Quarters) Green tea in India continues to grow in volume terms +14% Top line improvement in US c
Slide 11: Regionwise Performance – Quarter 2
REGIONWISE PERFORMANCE – Quarter 2 Branded Operations - International Business India Non Branded Operations# JVs / Partnerships #Non Branded Business - Includes Tata Coffee Ltd and other B2B businesses
Slide 12: India
India Improved topline growth – Tea portfolio grows +9% in volume and +7% in value terms Growth in both National and Regional brands Grows value market share by +0.2%* against Q1 of the current year. Green tea continues to grow market share aided by new campaign ‐ Volume growth of +14% I
Slide 13: Cha by Tata Tea - Spreading Chai Warmth
Cha by Tata Tea - Spreading Chai Warmth Currently, 4 operational pilot stores 6 new menu launches in 9 months of operations has helped sustain buzz & revenues Concept works across all platforms - Price, Menu, Experience Revenues, COGS , Profitability on track High Street @ Indiranagar Kiosk
Slide 14: International Business Reorganisation
International Business Reorganisation TGBL has re‐organised its international operations, from having two international region heads – Canada, America and Australia (CAA), Europe, Middle East and Africa (EMEA) – to one international head – Mr. Adil Ahmad. Mr. Ahmad (ex Reckitt Benckiser) who joined
Slide 15: US & Canada
US & Canada US CANADA Coffee growth in underlying terms 23% Sales flat ‐ Growth in Specialty offset by lower sales in Black Tea. Aided by direct Keurig K‐cups sales New Launch of Tetley Super Teas, Canada’s first line of teas Tea sales flat ‐ Growth in Good Earth sales offset by adverse fo
Slide 16: UK
UK UK revenue lower by 6% (in underlying terms 14%) Decline in black tea market exacerbated by prolonged summer this year. Gains market share both in volume and value despite declining tea market Focus on stabilising the new launches such as Tetley Squash and Tetley Cold Infusions to a c
Slide 17: Other International Business
Other International Business Australia ‐ Tea ‐ Kombucha (RTD) – Driving distribution and awareness • 3 new flavors launched – Cloudy Lemonade, Blood Orange and Peach • Focus on distribution and gaining momentum for the summer months Coffee – Lower sales in the quarter License for Caffitaly for t
Slide 18: Joint Ventures
Joint Ventures Tata Starbucks Bangladesh Strong double digit topline growth continues driven by growth Top line growth in double digits, but tea cost impacts profitability through new stores and improved in store performance Nourishco 129 stores opened till date. Performance flat 9 new stores ad
Slide 19: Other Businesses
Other Businesses TATA COFFEE LIMITED ASSOCIATES (Tea Plantations) APPL • Operating Income 4% Sales up 14% driven by higher volumes Improved performance in instant coffee sales KDHP Adverse performance in plantations business Performance impacted by the severe floods in Kerala • Profits incl
Slide 20: Financial Overview
TATA GLOBAL BEVERAGES @p FINANCIAL OVERVIEW
Slide 21: Financial Highlights for the Quarter
Financial Highlights for the Quarter In USD mn REVENUE FROM OPERATIONS 7 % on a like to like basis (excluding the REVENUE +7%* +4% impact of Russia exit) and 4% at constant currency Growth led by India Branded business 235 245 Direct Keurig K‐cups sales, offset by Q2 FY17-18 Q2 FY18-19 Int
Slide 22: Financial Highlights - Consolidated
Financial Highlights - Consolidated Quarter ended September Year to date Year Ended USD Mn September 31st March PARTICULARS 2018 2017 % Change 2018 2017 % Change 2018 Revenue from Operations 245 235 4.1% 495 472 4.9% 947 Other Income 10 5 111.1% 14 7 107.4% 13 Total Operating Expenses ‐226 ‐209 7.8%
Slide 23: Financial Highlights – OCI (Consolidated)
Financial Highlights – OCI (Consolidated) Quarter ended September Year to date September Year Ended USD mn 31st March PARTICULARS 2018 2017 Variance 2018 2017 Variance 2018 Consolidated Group Net Profit / 26 21 4 43 41 2 77 PAT Changes in Fair Value of Equity (0) 6 (6) 0 7 (7) 8 Instruments Exchange
Slide 24: Financial Highlights - Standalone
Financial Highlights - Standalone Quarter ended September Year to date September Year Ended 31st USD mn March PARTICULARS 2018 2017 % Change 2018 2017 % Change 2018 Revenue from Operations 118 110 6.6% 244 230 6.1% 447 Other Income 10 7 42.1% 19 13 37.9% 20 Total Operating Expenses ‐105 ‐94 11.5% ‐2
Slide 25: Segment Performance
Segment Performance Capital Segment Revenue Segment Results Particulars Segment Revenue Segment Results Employed YTD YTD YTD YTD YTD YTD Qtr Sept Qtr Sept % Qtr Sept Qtr Sept % % % USD mn Sept Sept Sept Sept Sept Sept 2018 2017 Change 2018 2017 Change Change Change 2018 2017 2018 2017 2018 2017 Bran
Slide 26: Region-wise Revenue from Operations
Region-wise Revenue from Operations Qtr September USD mn YTD September 2018 2017 Variance % PARTICULARS 2018 2017 Variance % 109 108 0 0% International Business 217 207 10 5% 108 101 7 7% India 224 211 13 6% 216 209 7 3% Total Branded Operations 441 418 23 5% 29 27 2 6% Non Branded Operations 56 56
Slide 27: Balance Sheet - Summary
Balance Sheet - Summary Consolidated Standalone Details As at As at As at As at September 30, March 31, September 30, March 31, USD mn 2018 2018 2018 2018 Total Equity 1,171 1,117 597 585 Non‐Current Liabilities 157 133 16 15 Current Liabilities 246 220 81 79 Liabilities of Disposal group 2 1 TOTAL
Slide 28: Company Information
COMPANY INFORMATION Equity Share details Bombay Stock Exchange (BSE) – 500800 National Stock Exchange (NSE) – TATAGLOBAL ISIN No – INE192A01025 (International Securities Identification Number) Depository Receipt Luxembourg Stock Exchanges ‐ US8765692038 London Stock Exchange ‐ TGBL www.tataglobalbev
Tata Global Beverages — Q2 FY2018-19 Earnings Presentation on 6ix