Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Q3 FY2020 Earnings Presentation
31 slides from Tata Consumer Products's earnings presentation, Feb 4, 2020
Slide 1: Cover letter to stock exchanges: Analysts Presentation
G TATA February 4, 2020 The National Stock BSE Ltd. The Calcutta Stock Exchange of 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 Str
Slide 2: Investor Presentation for Quarter ended December 2019
INVESTOR PRESENTATION for Quarter ended December 2019
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 1 Executive Summary 2 Business Profile 3 Performance at a Glance 4 Business Performance 5 M&A Update 6 Quarterly Financial Performance 7 Recognition and Awards 8 Sustainability Initiatives 3
Slide 5: Executive Summary
Executive Summary Consolidated Revenue grew by 3% to INR 1,962Cr (Q3) and by 4% to INR 5,693Cr (YTD) with overall volume 1 growth of 5% in Q3 and 6% for YTD 2 Consolidated EBITDA grew by 23% to INR 248Cr (Q3) and by 14% to INR 753Cr (YTD) over the last year 3 Consolidated Net Profit is higher by 25%
Slide 6: Consolidated Revenue: Q3 INR 1,962 Cr | 9M INR 5,693 Cr
Consolidated Revenue: Q3 – 1,962 INR Cr | 9M – INR 5,693 Cr (Branded Business – 87%) CANADA 52% INDIA Tetley, EUROPE Tata Tea Tata Tea, Tetley Tetley, Teapigs, Jemca, Vitax Himalayan, Fruski, Tata Cha 4% 18% 23% US Tetley, Teapigs, Tata Tea, Good Earth Eight O’ Clock Non-Branded Business: Q3 – INR 2
Slide 7: Market Context
Market Context FMCG growth in India* Exchange rates 25% 80.0 USD/INR 100.0 GBP/INR 94.6 94.4 20% 75.0 74.0 72.5 95.0 16.2% 15.7% 15% 13.4% 71.7 92.6 10.6% 70.0 90.0 91.9 10.0% 70.9 70.9 10% 69.6 7.3% 88.8 6.6% 65.0 85.0 87.3 5% 60.0 80.0 0% Oct. Nov. Dec. Oct. Nov. Dec. Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY
Slide 8: Market Context
Market Context 2 years CAGR Commodity Costs# Category Growth Trends (Quarter)* 200 Rs/kg 200 $c/lb India 146 149 145 US UK Canada 150 -0.1% 150 126 5% 5% 100 111 113 109 92 94 +1% 100 -5% 50 0 50 1% Q3 FY18 Q3 FY19 Q3 FY20 Q3 FY18 Q3 FY19 Q3 FY20 North India Tea South India Tea Arabica Coffee 400 25
Slide 9: Performance at a Glance (Q3)
Performance at a Glance (Q3) In INR Cr INDIA US Coffee Other International Tata Coffee CONSOLIDATED (TGBL Standalone) (UK, Canada and Others) Revenue 933 290 529 210 1962 Revenue Growth -3% -4% 3% [Underlying Growth] 6%* 25% [-2%] [-2%] [+4%] Volume Growth 7%* -2% -1% 14% 5% Key Brands Notes: a) Tat
Slide 10: Business Performance
Business Performance QUARTER ENDED DECEMBER 2019 9
Slide 11: India
India GROWTH DRIVERS OTHER UPDATES • India branded tea sales grew 6% in Q3 and 7% for YTD • Tata Tea Premium kick-started its ‘Desh Ki Chai’ campaign +6% • led by both National and Regional brands Branded volumes grew by 7% in Q3 and 8% for YTD with the launch of multi-regional marketing across UP,
Slide 12: UK
UK GROWTH DRIVERS OTHER UPDATES • Revenue almost flat, growth in Discounters partly • Tetley’s #NowWereTalking campaign has gained positive offset by decline in Grocery channel response on TV, Social media and Digital media platforms • Tetley Black tea 12week and 4 week shares grows • Focus is on ma
Slide 13: USA
USA GROWTH DRIVERS OTHER UPDATES • EOC K-cups and Private labels Coffee segments volumes • Masterbrand Tetley ‘Now We’re Talking’ campaign has grew in Q3, along with some decline in Bags coffee segment. now been extended to USA. It has received very strong However, on a YTD basis, Overall Coffee Vol
Slide 14: Canada
Canada GROWTH DRIVERS OTHER UPDATES • Revenue is up by +5% driven by higher black tea sales • 3 new flavors launched in the Supers range Matcha, Antiox and +5% • Super teas continue to grow and has achieved 3.2% Boost Revenue Market share of Specialty tea category • Integrated marketing campaign for
Slide 15: Tata Coffee (inc Vietnam)
Tata Coffee* (inc Vietnam) GROWTH DRIVERS OTHER UPDATES • • 210Cr Topline grew by 25% driven by Vietnam sales, partly offset by lower TCL performance Profitability improved mainly due to higher volumes and one time credit partly offset by lower realisation Revenue • Domestic instant Coffee [IC] volu
Slide 16: JV - Tata Starbucks
JV- Tata Starbucks GROWTH DRIVERS OTHER UPDATES • 28 new stores opened till date. • Barista Pride campaign re-introduced. A unique campaign where • New city added- Vadodra. 174 stores across India serve a specially curated beverage 27% • Strong focus on social media and loyalty program continues to
Slide 17: JV - NourishCo
JV - NourishCo GROWTH DRIVERS OTHER UPDATES • Himalayan grew in Q3, both in value and volume terms • TGP volume decline, mainly in the states of Odisha -4%* • Himalayan continues to leverage its partnership with Conde and AP, impacted by adverse weather. Volume Nast to build connect with the F&B wor
Slide 18: Marketing Campaigns/Initiatives
Marketing Campaigns/Initiatives Tata Tea Premium Delhi Campaign: • An interesting route to evoke Dilli's regional pride by wrapping the Delhi metro, with visuals of its rich heritage. The restage is backed by a complete pack change. • In Digital, a film on ‘Dili Wali Wedding’ has also been aired on
Slide 19: M&A Update
M&A Update Tata Chemicals Limited - Consumer Products Business • The scheme for acquiring the Consumer Products Business of Tata Chemicals Limited is on track. • The merger has been approved by the Hon’ble NCLT, Kolkata Bench and Mumbai Bench. • Merger is in the final stages, effective date to be an
Slide 20: Management Updates
Management Updates Appointment of Mr. Sunil Alaric D’Souza as MD and CEO (w.e.f. 4-Apr-20) Mr. Sunil Alaric D’Souza has been appointed as Managing Director and CEO of TGBL with effect from 4th April 2020. Sunil has 25+ years of rich experience in the consumer goods industry, and in-depth understandi
Slide 21: Financial Performance
Financial Performance QUARTER ENDED DECEMBER 2019 20
Slide 22: Highlights - For the Quarter ending Dec 19
Highlights – For the Quarter ending Dec 19 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 3% (4% in constant currency terms) India Branded Business grows (Vol +7%; Value +3% +6%) REVENUE FROM +5% 933 1,962 OPERATIONS 890 1,913 Tata Coffee incl. Vietnam +25% – higher volumes and com
Slide 23: Highlights - For nine months ending Dec 19
Highlights – For nine months ending Dec 19 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 4% 5,693 India Business grows (Vol +8%; Value +7%) 5,476 +4% Tata Coffee incl. Vietnam - higher volumes and REVENUE FROM 5476 5693 commencement of Vietnam sales +6% OPERATIONS 2815 2646 Intern
Slide 24: Financials: Standalone
Financials: Standalone Quarter Ended December PARTICULARS YTD December Full year Q3FY20 Q3FY19 Change% Q2FY20 INR Cr 9MFY20 9MFY19 Change% FY19 933 890 5% 914 Revenue from operations 2,815 2,646 6% 3,430 128 114 13% 125 EBITDA 401 404 (1%) 464 13.7% 12.8% 13.7% % 14.2% 15.3% 13.5% (1) 0 (2) Exceptio
Slide 25: Financials: Consolidated
Financials: Consolidated Quarter Ended December PARTICULARS YTD December Full year Q3FY20 Q3FY19 Change% Q2FY20 INR Cr 9M FY20 9M FY19 Change% FY19 1,962 1,913 3% 1,834 Revenue from operations 5,693 5,476 4% 7,252 248 201 23% 237 EBITDA 753 661 14% 837 12.6% 10.5% 12.9% % 13.2% 12.1% 11.5% (1) - (2)
Slide 26: Segment-wise performance (For the Quarter)
Segment-wise performance (For the Quarter) PARTICULARS SEGMENT REVENUE SEGMENT RESULTS BRANDED BUSINESS REVENUE INR Cr Q3FY20 Q3FY19 Change% Q3FY20 Q3FY19 Change% 1% India Tea Branded Business 17% Europe Tea Tea 1,412 1,389 2% 175 168 4% 49% Other Markets-Tea Coffee 314 326 (4%) 63 44 44% 14% US Cof
Slide 27: Shareholding Pattern
Shareholding Pattern SHAREHOLDING PATTERN as on 31st Jan 2020 STOCK DATA BSE Ticker 500800 3.5% Promoter and NSE Ticker TATAGLOBAL Promoter Group Market Capitalization (03-Feb-2020) INR 235 Bn. 21.2% Foreign Institutional 34.5% Investos Number of Shares Outstanding 631.13 Mn. Insurance Companies/ Ba
Slide 28: Recognition and Awards
Recognition and Awards INFORMATION TECHNOLOGY WORKPLACE SUSTAINABILITY TGB won the “Cyber Risk Quantification Champion of Tata Starbucks received awarded as Top #100 Best Tata Coffee awarded ‘Best Indian Coffee’ at 4th the Year” by Data Security Council of India (DSCI) Companies for Women in India 2
Slide 29: Sustainability for Value Chain and Communities
Sustainability for Value Chain and Communities Tata Global Beverages aims to support development programs for 1 million people in its supply chain Trustea spreads sustainable agricultural practices to 500,000 workers UNICEF’s Improving Lives program to reach 250, 000 beneficiaries Project Jalodari t
Slide 30: Sustainability for Climate & Business
Sustainability for Climate & Business CLIMATE LEADERSHIP DECOUPLING EMISSIONS FROM GROWTH We are one of the 6 Carbon footprint companies in India decreased 30% in on CDP A- list 2010-19 RENEWABLE ENERGY CARBON NEUTRAL 12% of the energy Himalayan for USA in production is certified Carbon from solar p
Slide 31: For More Information
For More Information www.tataglobalbeverages.com www.twitter.com/TGBL Contact Us: www.linkedin.com/company/tata-global-beverages Rakesh Sony rakesh.sony@tgbl.com +91-22-6121 8465 Abhishek Musahib abhishek.musahib@tgbl.com +91-22-6121 8452 Tanya Dere tanya.dere@tgbl.com +91-22-61218400 Satya Muniasam
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