Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q3 FY2022 Earnings Presentation
63 slides from Tata Consumer Products's earnings presentation, Feb 2, 2022
Slide 1: Outcome of Board Meeting cover letter
TATA February 2, 2022 National Stock Exchange of | BSE Limited The Calcutta Stock India Limited Corporate Relationship Exchange Limited Exchange Plaza,5th floor Dept. 1I* Floor, New 7 Lyons Range Plot No. C/I, G Block Trading Wing Kolkata 700 001 Bandra Kurla Complex Rotunda Building, Bandra (E) PJ
Slide 2: Press Release and Investor Presentation enclosures
TATA Press Release and Investor Presentation We also enclose herewith the copy of Press Release and Investor Presentation with regards to the Unaudited Financial Results of the Company for the quarter and nine months ended December 31, 2021. The above information is also being made available on the
Slide 3: Auditor review report on standalone results
Deloitte Chartered Accountants One International Center Haskins & Sells LLP Tower 3, 32nd Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai 400 013 Maharashtra, India Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001 RESULTS TO THE BOARD OF DIRECTORS OF TATA CONSUMER PRODUCTS LIMITED (FORMERLY KN
Slide 4: Unaudited Standalone Financial Results
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office: 1 Bishop Lefroy Road Kolkata-700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com Unaudited Standalone Financial Results for the quarter and nine mont
Slide 5: Notes to standalone results
Notes: 1. For the quarter, Revenue from operations at Rs 2030 Crores increased by 3% over corresponding quarter of the previous year driven by growth in branded business. Profit before tax at Rs 252 Crores is higher by 43% as compared to corresponding quarter of previous year mainly on account of re
Slide 6: Auditor review report on consolidated results
Deloitte Chartered Accountants One International Center Haskins & Sells LLP Tower 3, 32nd Floor Senapati Bapat Marg Elphinstone Road (West) Mumbai 400 013 Maharashtra, India Tele: + 91 22 6185 4000 Fax: +91 22 6185 4001 INDEPENDENT AUDITOR S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL
Slide 7: Auditor review report (continued)
Deloitte Haskins & Sells LLP disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. 6. We did not review the interim financial
Slide 8: Annexure A: list of entities
Deloitte Haskins & Sells LLP Annexure A: Sr. No Name of the Entities: Parent: Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Subsidiaries:- Tata Consumer Products UK Group Limited 1 (Formerly Tata Global Beverages Group Limited) 2 Tata Global Beverages Holdings Limited 3 Tat
Slide 9: Annexure A: list of entities (continued)
Deloitte Haskins & Sells LLP Sr. No Name of the Entities: Tata Consumer Products Capital Limited 29 (Formerly Tata Global Beverages Capital Limited) 30 Tata Coffee Limited 31 Tata Coffee Vietnam Company Limited 32 Consolidated Coffee Inc. 33 Holdings Inc. 34 35 Tata Tea Extractions Inc. 36 Tata Tea
Slide 10: Unaudited Consolidated Financial Results
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office: 1 Bishop Lefroy Road Kolkata-700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com Unaudited Consolidated Financial Results for the quarter and nine mo
Slide 11: Notes to consolidated results
Notes: 1. For the quarter, Revenue from operations increased by 5% (4% in constant currency) as compared to corresponding quarter of the previous year. Profit before exceptional items and tax at Rs 401 Crores is higher by 34%. Group Consolidated Net Profit at Rs 290 Crores is higher by 22%. 2. Excep
Slide 12: Consolidated Segment wise Revenue, Results, Assets and Liabilities
Tata Consumer Products Limited (Formerly Tata Global Beverages Limited) Registered Office : 1 Bishop Lefroy Road Kolkata 700020 CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website: www.tataconsumer.com Unaudited Consolidated Segment wise Revenue, Results, Assets and Lia
Slide 13: Press Release: Results for the Quarter ended 31st December 2021
February 2nd, 2022 Results for the Quarter ended 31st December 2021 Consolidated Results: Revenue from Operations for the quarter at Rs 3208 Crs, up 5% on reported basis, and up 6% on a like to like basis, net of exits Consolidated EBITDA for the quarter at Rs 468 Crs grew by 28% Group Net Profit fo
Slide 14: Press release: India business updates
key players from the India women’s hockey team, was released to bring alive the ‘Josh jagaye har roz’ proposition for the brand. In line with our hyperlocal strategy, a state specific campaign was launched for Tata Tea Chakra Gold in AP and Telangana Tata Tea 1868- a specially curated range of p
Slide 15: Press release: International updates
International During the quarter, the International Beverages business revenue was marginally down cycling an elevated base driven by increased in home consumption of tea and coffee last year. Tetley fruit & herbal, Teapigs and Good Earth continue to gain market share in the UK. A new Tetley T
Slide 16: Sustainability Update
Sustainability Update Tata Consumer Products received ‘Jury Special Award’ under ‘Beyond the Fence’ category for Project Jalodari, our flagship water management programme at CII National Awards for Excellence in Water Management 2021. Tata Coffee, a subsidiary of Tata Consumer Products, received
Slide 17: Awards and CEO comment
The Indore packaging center won the gold award in QCFI-2021 Bhopal Chapter convention. QCFI is an industry recognized institution representing the Quality Circle Movement in India. The packaging center also won a silver medal at the 3rd CII FACE Kaizen Digital Competition. Tata Coffee’s Jumboor
Slide 18: About Tata Consumer Products and disclaimer
an unparalleled ability to leverage the Tata brand in consumer products. The Company has an annual turnover of ~Rs. 11,600 cr with operations in India and International markets. Last 10-year financials are available on Historical financial data. For more information on the Company, please visit our
Slide 19: Investor Presentation
Investor Presentation For the quarter and nine months ended December 2021 2nd February 2022
Slide 20: 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 21: Agenda
Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance – Business performance India – International Financial performance Outlook 3
Slide 22: 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 ₹ 11.6K crore consolidated Reach almost 200mn revenue in FY21 with current households in India and market cap of ~₹69k* Cr. dist
Slide 23: Executive Summary
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Slide 24: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 6% (ex International Foodservice business exits last year)– bringing 2-year CAGR to 13.4%. Overall, India business1 grew 6% led by o India Beverages2 business growth of 1%, with 6% volume growth o India Foods3 business growth of 16%
Slide 25: Performance Overview
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Slide 26: Key Businesses snapshot – Q3FY22
Key Businesses snapshot – Q3FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 1,278 732 343 553 284 3,208 Revenue Growth 1% 16% 7% -1% 34% 5%[ 6%] Constant currency growth 6% -5% 34% 4%[ 6
Slide 27: Key Businesses snapshot – 9MFY22
Key Businesses snapshot – 9MFY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 3,811 2,149 940 1,506 767 9,250 Revenue Growth 13% 19% -4% 0% 12% 8%[10%] Constant currency growth -3% -5% 12%
Slide 28: Group Performance at a glance – Q3FY22
Group Performance at a glance – Q3FY22 ₹ 3,208 Cr. ₹ 468 Cr. ₹ 401 Cr. ₹ 290 Cr. ₹ 300 Cr. ~₹ 1,891 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 5%[6%]# 28% 34% 22% 24% Margin% 14.6% 12.5% 9.0% 9.4% Margin expansion +270 bps +280 bps +130 bps +148
Slide 29: Group Performance at a glance – 9MFY22
Group Performance at a glance – 9MFY22 ₹ 9,250 Cr. ₹ 1,291 Cr. ₹ 1,105 Cr. ₹ 776 Cr. ₹ 802 Cr. ~₹ 1,891 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 8%[10%]# 3% 2% -9% -1% Margin% 14% 11.9% 8.4% 8.7% Margin expansion -67 bps -66 bps -161 bps -79 bp
Slide 30: Progress against Strategic Priorities
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Slide 31: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13
Slide 32: Strengthening the core – India Packaged Beverages
Strengthening the core – India Packaged Beverages Chakra Gold became the co sponsor of Big Boss TN – biggest reality TV show in the state Tata Tea Chakra Gold new TVC is a toast to Tata Tea Agni relaunch - new Agni TVC with 3 ‘Ghanam’ taste of Andhra Pradesh and Telangana, Lead protagonists of India
Slide 33: Strengthening the core – India Foods
Strengthening the core – India Foods Tata Sampann Staples: Tata Salt Superlite Strengthened our leadership in new digital films branded Poha category on E- creating awareness Commerce channels by driving on BP management consumer upgradation and and lower sodium conversion to the larger pack intake
Slide 34: Continuing to focus on innovation – 1/2
Continuing to focus on innovation – 1/2 Tata Coffee Quick Tata Soulfull No Maida Shuddh by Tata Salt Tata Sampann Dry Filter Choco Ragi Bites Fruits Tata Sampann Dry Fruits offer Filter coffee like taste in an instant Ragi bites chocos now with no South first launch with a 100% Pure range of premium
Slide 35: Continuing to focus on innovation – 2/2
Continuing to focus on innovation -2/2 1868 by Tata Tea Tata Tea Adrak Chai Tata Nature Alive Launched 8 new variants of 1868 Launched a new variant of Tata Tea Agni Launch of Mass Premium range of premium teas with adrak (ginger) Natural Mineral Water to complement our existing range 17
Slide 36: Another strategic addition to our portfolio – Tata Q
Another strategic addition to our portfolio – Tata Q In line with our strategic priority of exploring new opportunities for growth, TCPL acquired Tata SmartFoodz Ltd. (TSFL), the owner of the brand “Tata Q” in November’21. TCPL has gained access to state-of-the-art MATS technology and TSFL’s in-
Slide 37: Tata SmartFoodz integration update
Tata SmartFoodz integration update Key Highlights (Nov’21 – Jan’22) Sales & Operations Planning (S&OP) processes harmonized Integration of distribution network near completion – TCPL domestic & international network being leveraged Integrated organization structure completed; HR policies to be harmo
Slide 38: Network optimization
Network optimization Network optimization and operating model design for the foods 3P network Identify synergies with existing businesses & current expansion plans Balance across cost, service levels, responsiveness & reliability Define right balance between in-house vs outsourced operations and tri
Slide 39: Dynamically managing P&L
Dynamically managing P&L Inflationary pressures Still delivering improved EBITDA margins* QoQ Cost saving Pricing initiatives & Improved mix rationalization of discretionary spends Freight Packaging Energy & other key input costs + 14.6% Additional investment in our new businesses 13.9% 13.4% 10.4%
Slide 40: Key business contribution towards sustainability
Key business contribution towards sustainability Sustainability at Starbucks Project Jalodari Tata Starbucks embarks on building a sustainable future by taking meaningful steps and using the 3’R’s – Recycle, Reduce and Reuse Tata Consumer Products received ‘Jury Special Award’ under ‘Beyond the Fenc
Slide 41: Macro environment
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Slide 42: Macro and commodity overview
Macro and commodity overview Global GDP growth trend Commodity price trend Tea Prices Coffee Prices % 23.6 233$c / KG 220 $c/ LB 189 194 194 20.1 180 8.4 6.0 3.3 0.3 3.0 12.2 ₹ / KG 1.6 6.8 5.9 215 2.3 0.5 0.5 194 188 187 4.9 6.0 113 115 158 1.2 -9.1 -2.9 -2.3 $c/ LB -2.2 -7.4 -7.1 -8.1 -5.8 ₹ / KG
Slide 43: Market context – category value growth rates
Market context – category value growth rates US UK Canada India • Regular black tea category witnessed decline in the US and the UK. In Canada, Regular black tea saw a decline due to lapping a high base led by COVID induced pantry loading. • Non-black tea (Fruit & Herbal, Specialty, +10.1% Decaf, Co
Slide 44: Business performance – India Q3FY22
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Slide 45: India Packaged Beverages
India Packaged Beverages Performance commentary • Revenue for the quarter declined • EBIT Margin for the segment has -1% 1%, despite a 6% volume growth driven by pricing. This brought 2- come back, expanding 1100bps YOY Revenue Growth year Revenue CAGR to 19% and 2-year Volume CAGR to 8%. • Coffee v
Slide 46: India Foods
India Foods Performance commentary • Revenue for the quarter grew 16%, • Tata Sampann portfolio grew +16% with a volume growth of 4%, bringing 2-year Revenue CAGR to strong double digits led by strong performance in pulses, besan and Revenue Growth1 poha. 17%. Launch of • Salt portfolio continued to
Slide 47: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) * 221% Performance commentary Sales as a % of PY 186% 191% 191% • Revenue for the quarter grew 91% • Himalayan water turned EBIT 72Cr bringing 2-year CAGR to 53%. positive, after breaking even last quarter. 109% Revenue 82% • The growth has been strong across • Several co
Slide 48: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary # Extractions +33% • Revenue for the quarter grew 33% as both extractions and • Overall extraction business grew 36%, despite challenges in shipping Revenue Growth plantations business grew and container availability. Tata Coffee’s J
Slide 49: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 60% • Added 13 new stores during the 94%* on a relatively low base; it grew 37% indexed to Q3FY20 (baseline). quarter and entered two new cities – Trivandrum and Siliguri. Stores reopened • Revenue saw strong recovery since •
Slide 50: Business performance – International
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Slide 51: UK
UK Performance commentary • Revenue for the quarter declined 4% • Specialty OOH and mainstream -4% (ex-Teapigs, constant currency) led by softness in everyday black OOH channels saw strong growth during the quarter. Revenue Growth^ category. • Tetley F&H (led by Supers), Teapigs • Teapigs declined 3
Slide 52: USA
USA Performance commentary • Coffee: Revenue for the quarter • Tea (ex Empirical): Revenue for the Range extension of Flavors of America platform with +6% grew 6% (constant currency), with growth across bags and K-cups. quarter was flat (constant currency) due to pantry stocking that led to introduc
Slide 53: Canada
Canada Performance commentary • Revenue for the quarter declined 2% • Tetley regular continued to gain Supporting Super -2% (constant currency) due to a high base last year (Q3FY21 was up share* outpacing the category. Revenue Growth^ Tea line with 24%). Regular tea grew 2%. integrated campaign incl
Slide 54: Awards & recognition
Awards & recognition 1. Best Corporate Website 2. Great Place to Work and Annual Report TCPL got recognized by the Great Place to Work which reinforces our Tata Consumer Products won the 4th efforts on a journey of building and edition of India Content Leadership sustaining a High-Trust and High- Aw
Slide 55: Financial Performance
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Slide 56: Highlights – for the quarter ended Dec'21
Highlights – for the quarter ended Dec’21 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: Growth in Topline, net of exits +6% (at constant Revenue from currency +6%), 67 138 3,208 operations 2,030 3,070 • India Branded Business +5% 1,963 • International Business flat, in constant currency terms
Slide 57: Financials: Standalone
Financials: Standalone Quarter ended Dec’21 Profit and Loss statement Year to date Dec’21 Q3FY22 Q3FY21 Change % (all nos. in ₹ Crores) 9M FY22 9M FY21 Change % 2,030 1,963 3% Revenue from operations 5,984 5,304 13 % 281 197 42 % EBITDA 823 777 6% 13.8 % 10.0 % % 13.8 % 14.6 % 245 165 49 % EBIT 717
Slide 58: Financials: Consolidated
Financials: Consolidated Quarter ended Dec’21 Profit and Loss statement Year to date Dec’21 Q3FY22 Q3FY21 Change % (all nos. in ₹ Crores) 9MFY22 9MFY21 Change % 3,208 3,070 5 %1 Revenue from operations 9,250 8,565 8 %2 468 365 28 % EBITDA 1,291 1,253 3% 14.6 % 11.9 % % 14.0 % 14.6 % 398 300 32 % EBI
Slide 59: Segment-wise Performance
Segment-wise Performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q3 FY22 Q3 FY21 Change Q3 FY22 Q3 FY21 Change 44 % India beverages (%) (%) 25% India foods India Beverages 1,278 1265 1% 220 77 185% 31 % International beverages India Foods 732 631 16% 43 93 (54)% I
Slide 60: Outlook
Slide 61: Outlook
Outlook Macros Third wave of COVID is underway in India, although it is less severe, some impact on business continues. We are hoping for a fast economic recovery this time, but Inflation remains a concern. The demand environment in our key International markets (US, UK, Canada) will remain vola
Slide 62: Thank You
Thank You For more information Nidhi Verma For media queries Head – Investor Relations & Corporate Communication Satya Muniasamy nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com Write to us at investor.relations@tataconsumer.com Call us at +91-22-61218400 Last 10-year financials are ava
Slide 63: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st December, 2021 Stock data BSE Ticker 500800 Others 5% Promoter and NSE Ticker TATACONSUM promoter Individual Group Market Capitalization (Dec 31, 2021) ₹ 685.1 bn 35% 21% Number of Shares Outstanding 921.6 Mn. MFs/ UTI/ AIFs 7% Insura
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