Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Q3 2015-16 Earnings Presentation
21 slides from Tata Consumer Products's earnings presentation, Feb 11, 2016
Slide 1: Analyst Presentation on YTD 15-16 results
Analyst Presentation on YTD 15-16 results February 11, 2016
Slide 2: Agenda
Agenda Financial Highlights Operating Performance Review Financial Review Reiteration of our strategy 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS 3
Slide 4: Financial Highlights – Operating income
Financial Highlights – Operating income +1% 7,000 6,000 5,000 4,000 6145 6071 3,000 2,000 1,000 2016 2015 Operating Income o At prior year fx rates, Operating income would be higher by 3%. 4
Slide 5: Financial Highlights – Operating Profit
Financial Highlights – Operating Profit -17% 500 450 400 350 300 479 250 400 200 150 100 50 0 2016 2015 Operating Income o At prior year fx rates, Operating profit would be lower by 18%. 5
Slide 6: Operating Performance Review
Operating Performance Review 6
Slide 7: Operating Performance Highlights – South Asia
Operating Performance Highlights – South Asia Strong sales growth Maintains volume and value leadership across Black & Green Tea. Growth in both National and Regional Brands Launch of Special blend for Maharashtra – Tata Tea Gold Tata Coffee Grand launched in the current quarter. Tata Tea Fusion als
Slide 8: Operating Performance Highlights – CAA - Canada
Operating Performance Highlights – CAA - Canada Maintains volume and value leadership New products listed continues to gain distribution o Tetley signature collection o Teapigs – gains market-share in the specialty segment. The National TV/Digital campaign ran in Q3 o featuring the Signature line o
Slide 9: Operating Performance Highlights – CAA – USA/Australia
Operating Performance Highlights – CAA – USA/Australia USA Coffee net sales flat to previous year despite intense competitive intensity Incremental sales and revenue on the New Instant coffee/Cans rolled out in Wal-mart stores Tetley Green Tea reflects modest growth with gains in both volume/value.
Slide 10: Operating Performance Highlights – EMEA - UK
Operating Performance Highlights – EMEA - UK UK Top line marginally lower than previous year – in declining black tea market Green Tea remains the star sector with continued improvement in Super Green Tea Good Growth in topline in 3 of the 4 major retailers. New Jedi TVC on air. Tetley Super- green
Slide 11: Operating Performance Highlights – EMEA – Rest of Europe/Middle East
Operating Performance Highlights – EMEA – Rest of Europe/Middle East Rest of Europe and ME Good execution of launch plans in ME o TV campaign with online advertising. o Supported by instore consumer promotion and sampling France – Robust growth in green and earl grey segments post re-launch o MAT vo
Slide 12: Operating Performance Highlights – Water Vertical/Starbucks
Operating Performance Highlights – Water Vertical/Starbucks HIMALAYAN Stable performance by Himalayan with robust topline growth Focus to improve profits by managing channel mix. TATA GLUCO PLUS Significant growth in Tata Gluco plus – both volume and value Restage of the brand with new visual design
Slide 13: Operating Performance Highlights – Non Branded Business
Operating Performance Highlights – Non Branded Business Good performance by Tata Coffee which reflects increase in Operating Income as well as Operating Profit o Improvements in coffee plantation and significant growth in Pepper o Improvements in instant coffee business Tea plantations profitability
Slide 14: Headwinds
Headwinds o Higher Competitive intensity mainly in the international markets. o Timing of sales with major multiples in the international markets. o Declining Black tea category in the international markets o Economic conditions in Russia o Higher commodity costs oTea Auction prices oKenya – Auction
Slide 15: Financial Review
FINANCIAL REVIEW 15
Slide 16: Financial Highlights
Financial Highlights Quarter ending Dec Particulars Nine month ending Dec Actual PY Variance (In Rs crores) Actual PY Variance 2081 2141 (60) Total Operating Income 6145 6071 74 134 161 (27) EBIT 400 479 (79) 10 12 (2) Other Income 55 62 (7) (23) (27) 4 Finance Cost (51) (64) 13 121 146 (25) Profit
Slide 17: Region wise income from operations
Region wise income form operations Particulars Nine month ending Dec (In Rs crores) Actual PY Variance CAA 1502 1539 (37) EMEA 1581 1680 (99) South Asia Brands 2360 2161 199 Total Branded Operations 5443 5380 63 Non Branded Operations 599 549 50 Others and Eliminations 103 142 (39) Total Operating I
Slide 18: Reiteration of our strategy
Reiteration of our strategy FINANCIAL REVIEW 18
Slide 19: Key Trends and Our Strategy
Key and Key trends Trends and Our Strategy our strategy Key Trends /Opportunities - Consumers WATER / FUCTIONAL WATER Premium tea segments growing Health and wellness Increasing disposable incomes Cocooning – Café Experiences - CSD declining Growth in new formats Sensory Fusion – exotic flav
Slide 20: Strategy – Key themes
Strategy – Key themes Innovation overdrive Focus Areas – functional teas, green teas, new formats (Fusion), premiumisation, e-commerce Base business rejuvenation Tetley Global re-launch, Tata Tea Premium re-launch Whitespace market entries Middle East, Tata Tea Gold – Maharashtra blend, Tata Coffee
Slide 21: Thank you
TATA GLOBAL BEVERAGES
Tata Global Beverages — Q3 2015-16 Earnings Presentation on 6ix