Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Q3 FY2023 Earnings Presentation
54 slides from Tata Consumer Products's earnings presentation, Feb 3, 2023
Slide 1: Exchange filing cover letter for press release and investor presentation
February 2, 2023 National Stock Exchange of India BSE Limited The Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers Limited Exchange Plaza, C-1, G Block Dalal Street 7 Lyons Range Bandra Kurla Complex, Bandra (E) Mumbai 400001 Kolkata 700 001 Mumbai 400 051 Scrip Code – 10000027 (Demat) Scri
Slide 2: Investor Presentation for the quarter ended December 2022
Investor Presentation For the quarter ended December 2022 2nd February 2023
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 Executive summary Performance overview Progress against strategic priorities Macro environment Business performance – Business performance India – International Financial performance Concluding remarks Other 3
Slide 5: 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 ₹ 12.4K crore consolidated Reach north of 200mn revenue in FY22 with current households in India and market cap of ~₹71k* Cr dis
Slide 6: Executive Summary
) CO ORRIN SC CC Executive Summary TATA CONSUMER PRODUCTS
Slide 7: Executive Summary
Executive Summary During the quarter, Consolidated Revenue grew 8% YoY, bringing the YTD growth to 10%. On a 3-year CAGR basis, this translates to ~12% revenue growth. Consolidated EBITDA for the quarter declined 2% YoY, bringing YTD growth to 5%. On a 3-year CAGR basis, the consolidated EBITDA
Slide 8: Performance Overview
) CO ORRIN SC CC Performance Overview TATA CONSUMER PRODUCTS
Slide 9: Key Businesses Snapshot – Q3FY23
Key Businesses Snapshot – Q3FY23 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea (incl. Vietnam) Revenue 1,218 947 380 549 364 3,475 Revenue growth -5% 29% 11% -1% 28% 8% Constant currency growth 1% 2% 25% 7% Volume growth -5% 4% -17% 0% -9
Slide 10: Key Businesses Snapshot – 9MFY23
Key Businesses Snapshot – 9MFY23 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea (incl. Vietnam) Revenue 3,765 2,706 1,112 1,493 1,008 10,164 Revenue growth -1% 26% 18% -1% 31% 10% Constant currency growth 10% 2% 29% 9% Volume growth -2% 0%
Slide 11: Summary of Group Performance – Q3FY23
Summary of Group Performance – Q3FY23 ₹ 3,475 Cr. ₹ 458 Cr. ₹ 404 Cr. ₹ 364 Cr. ₹ 284 Cr. ~₹ 2,099 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 8% [7%] -2% 1% 26% -5% Margin 13.2% 11.6% 10.5% 8.2% Margin expansion (YoY) -140 bps -90 bps +150 bps -120
Slide 12: Summary of Group Performance – 9MFY23
Summary of Group Performance – 9MFY23 ₹ 10,164 Cr. ₹ 1,356 Cr. ₹ 1,178 Cr. ₹ 1,031 Cr. ₹ 882 Cr. ~₹ 2,099 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 10% [9%] 5% 7% 33% 10% Margin 13.3% 11.6% 10.1% 8.7% Margin expansion (YoY) -60 bps -40 bps +170 bps
Slide 13: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 14: Strategic Priorities
Strategic Priorities The picture can't be displayed. Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13
Slide 15: Making consistent progress on reach
Making consistent progress on reach Sub-distributors Distributors Ecommerce Modern Trade 8.8% of Sales Revenue NPD contribution 14.8% of Sales Revenue New SKUs on shelf in Q3FY23 All numbers above are for Q3FY23, and growth is for Q3FY23 vs Q3FY22 14
Slide 16: Packaged Beverages – continued focus on execution
Packaged Beverages – continued focus on execution Tata Tea Agni Masterbrand architecture consolidation completed Launched Tetley Green Tea Tata Tea Chakra Gold celebrated Tata Coffee Grand Premium, a 100% Immune Tulsi. This new launch Deepavali in TN with the launch of a coffee blend with flavor-loc
Slide 17: India Foods – portfolio approach to salt and focus on Sampann
India Foods – portfolio approach to salt and focus on Sampann Functional campaign launched for Tata Tata Salt’s Salt Immuno to #HarSawaalUthega create awareness campaign is an about the benefits attempt to amplify of zinc the sound of India’s youth by fortification. Zinc encouraging them to Market s
Slide 18: Continuing the momentum on innovation (1/2)
Continuing the momentum on innovation (1/2) Tata Tea Premium Street Chai Range Tata Coffee Café Specials Unique range recreating the taste of popular street chais (teas) Upgrading the in-home coffee consumption experience to a café style hot coffee Tata Fruski Juice Jelly Tata Sampann Chef Style Mas
Slide 19: Continuing the momentum on innovation (2/2)
Continuing the momentum on innovation (2/2) Tata Raasa Tata Soulfull Ragi Bites Fills Range of RTE & RTC developed for specific International markets Enhanced cream version of our popular Ragi Bites in three variants Tata Sampann range of South Spices Tata Salt Rock Salt and Pink Salt Tata Salt+ Vit
Slide 20: Creating a strong foundation to fuel future innovation
Creating a strong foundation to fuel future innovation We have revamped our R&D facilities with state-of-the-art infrastructure to accelerate the pace of innovation and to future-proof and embed innovation across the organization – Vikas Gupta, Global Head, R&D Bengaluru Sri City Mumbai World class
Slide 21: Momentum continues in the new Engines of Growth
Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 13% 10% 9% 8% 6% Combined YoY FY20 FY21 FY22 Q3FY22 Q3FY23 revenue growth Q3FY23 The rapid scale-up of our growth businesses has seen them consistently increase their contribution to TCP’s revenue Grow
Slide 22: Striving towards a sustainable future
Striving towards a sustainable future Tata Consumer received the Gold Award in Food loss management: We have The Damdim Packaging Centre received the Category 2 – Climate Change of ICAI partnered with Wastelink and First Prize in the Consumer Goods category International Sustainability Reporting tog
Slide 23: For the love of Products, Planet, and People #ForBetter
For the love of Products, Planet, and People #ForBetter Through its first Sustainability Report, Tetley takes you on a journey The first-ever impact report of teapigs explores Teapigs’ journey to through its business from tea bush to final sip Read the report here. becoming a B-Corp, sourcing & carb
Slide 24: Macro environment
) CO ORRIN SC CC Macro environment
Slide 25: Key Commodities' movement
Key Commodities’ movement Tea Coffee N. India Tea (INR/kg) S. India Tea (INR/kg) Kenya Tea ($c/kg) Arabica Coffee ($c/lbs) Robusta Coffee ($c/lbs) 246 236 233 229 234 225 224 223 222 215 194 194 191 180 212 177 177 189 188 195 147 186 158 177 128 115 153 149 105 103 145 94 96 86 88 122 117 61 62 68
Slide 26: Market context – category growth rates
Market context – category growth rates US UK Canada India +11.1% +10.4% • US markets saw category growth in Coffee (both Bags and K-cups) and Tea on account 10.5% of price increases. In volume terms, the +8.0% category saw a decline. +5.6% • UK – The tea category in both regular and +5.2% F&H saw gr
Slide 27: Business performance – India
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance — India
Slide 28: India Packaged Beverages
India Packaged Beverages Performance commentary -9% • Revenue for the quarter declined 9% led by pricing corrections and volume decline, owing to demand slowdown • Coffee revenue grew 34% YTD. Revenue Growth in some of our key markets. • On a 3-year CAGR basis, the In line with our hyperlocal strate
Slide 29: India Foods
India Foods Performance commentary Continuing to drive +29% • Salt revenue grew 27% during the quarter YoY. The 3-year revenue CAGR for salt stood at 19% in • Tata Sampann portfolio delivered strong growth of 37%, with broad- Revenue Growth based performance across staples momentum for Q3FY23. and d
Slide 30: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) Performance commentary 119Cr • Delivered yet another strong quarter • Operating leverage and continued with a robust revenue growth of cost-saving initiatives across the 66% YoY. P&L helped drive margin Revenue improvement over the previous year. Launched a disruptive • N
Slide 31: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +25%# Extractions • Revenue for the quarter grew 25%# • Overall extractions business grew by led by strong growth in the 33% driven by both the domestic and Revenue Growth extractions business. The the Vietnam business. planta
Slide 32: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew • Opened 15 new stores during 11 42% YoY, led by a revival in out-of-home consumption and strong store addition. the quarter* and entered 2 new cities. Net new stores Launched the opened during the • The business continued to
Slide 33: Business performance – International
0 OOO Ss 5 2 OCR SO Business performance - International
Slide 34: UK
UK Performance commentary +1% • Revenue for the quarter grew 1% (constant currency), reversing the decline seen in the previous • Tetley held share in everyday black segment.* Revenue Growth# quarter. • Teapigs declined, with growth in • Inflation and GBP depreciation vs offline channels being more
Slide 35: USA
USA Performance commentary +1% • Coffee: Revenue for the quarter grew 1% (constant currency) driven by pricing. The 3-year revenue • Tea: Revenue declined 8% (constant currency) led by a decline in Tetley Black Iced tea. Coffee Revenue Tata Raasa launched in CAGR for coffee stood at 9%. Growth^ the
Slide 36: Canada
Canada Showcased Tata Tea and Tata Performance commentary Sampann to retail customers at Canadian +5% • Revenue for the quarter grew 5% (constant currency). The 3-year revenue CAGR for the quarter • Tetley outperformed both regular tea and specialty tea segments during the quarter. Grocery Revenue G
Slide 37: Financial Performance
0 OOO Ss e © 6© ©~ & 8 . S * ee Financial Performance
Slide 38: Performance Highlights – Q3FY23
Performance Highlights – Q3FY23 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated revenue at Rs 3,475 cr 266 3,475 • India business +8% 3,208 Revenue from 123 operations 2,030 2,153 • International business +2% (constant currency) • Non-branded business +22% (constant currency) +8% +6% [7%] E
Slide 39: Financials: Consolidated
Financials: Consolidated Quarter ended Dec’22 Profit and Loss statement Year to date Dec’22 Q3FY23 Q3FY22 Change % (all nos. in ₹ Crores) 9MFY23 9MFY22 Change % 3,475 3,208 8% Revenue from operations 10,164 9,250 10 % 458 468 -2 % EBITDA 1,356 1,291 5% 13.2 % 14 6% % 13.3 % 14.0 % 383 398 -4 % EBIT
Slide 40: Financials: Standalone
Financials: Standalone Quarter ended Dec’22 Profit and Loss statement Year to date Dec’22 Q3FY23 Q3FY22 Change % (all nos. in ₹ Crores) 9MFY23 9MFY22 Change % 2,153 2,030 6% Revenue from operations 6,361 5,984 6% 328 281 17 % EBITDA 971 823 18 % 15.2 % 13.8 % % 15.3 % 13.8 % 292 245 19 % EBIT 863 71
Slide 41: Segment-wise Performance Q3FY23
Segment-wise Performance Q3FY23 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr Q3 FY23 Q3 FY22 Change Q3 FY23 Q3 FY22 Change India Business 2,165 2,010 8% 300 263 14% 70% India Business International Business 930 897 4% 88 144 (39)% 30% International Business Total Brand
Slide 42: Segment-wise Performance 9MFY23
Segment-wise Performance 9MFY23 Particulars Segment Revenue Segment Results Revenue – Branded business ₹ Cr 9M FY23 9M FY22 Change 9M FY23 9M FY22 Change India Business 6,470 5,960 9% 881 754 17% 71% India Business International Business 2,605 2,445 7% 253 350 (28)% 29% International Business Total
Slide 43: Concluding remarks
0 OOO Ss «SOUPS Oo Concluding remarks
Slide 44: To conclude
To conclude Macros Demand impacted by sluggishness in rural and semi-urban markets and a delayed winter in some of our salient markets for tea, however, we continue to remain focused on execution. The impact of inflation and monetary tightening on the economies & currencies of our key Internatio
Slide 45: Q&A
TATA CONSUMER PRODUCTS PREMIUM TAA oo uuside SOULFULL’ aa COLD, E x har Se mae Q&A TATA CONSUMER PRODUCTS i cee
Slide 46: Other
Slide 47: Shareholding information
Shareholding information Quarter Ended June’20 Pattern as on 31st December, 2022 Stock data BSE Ticker 500800 Others 6% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (Dec 31, 2022) ₹ 712.7 bn Individual 34% 20% Number of Shares Outstanding 929.0 Mn MFs/ UTI/ AIFs 6% Insuran
Slide 48: Thank You
Thank You For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication [email protected] Kaiwan Olia Manager – Investor Relations [email protected] Call us at Retail investors - Contact +91-22-61218400 investor.relations
Slide 49: Results for the Quarter ended 31st December 2022
Feb 2nd, 2023 Results for the Quarter ended 31st December 2022 Consolidated Results: Revenue from Operations for the quarter at Rs 3,475 Crs up 8%. For nine months ended, Revenue at Rs 10,164 Crs up10% Consolidated EBITDA for the quarter at Rs 458 Crs declined by 2% and for nine months ended EBITDA
Slide 50: Press release: India business updates
Tea Immune Tulsi- a blend which has the goodness of antioxidants with added vitamin C and the flavour of Tulsi, Tata Tea Premium Street Chai range- a unique range recreating the taste of popular street chais, Tata Coffee café specials- upgrading the in-home coffee consumption experience to a café st
Slide 51: Press release: NourishCo, R&D and distribution reach
• NourishCo sustained strong momentum during the quarter with a 66% revenue growth led by broad based performance across products and geographies. The business launched Tata Fruski Juice n Jelly, a disruptive format of drinkable jelly in select markets. Inspired by local Indian flavours, it is avail
Slide 52: Press release: Tata Starbucks and sustainability update
Tata Starbucks • Tata Starbucks recorded strong revenue growth of 42% for the quarter, led by a revival in out of home consumption and strong store addition. • Launched the first Starbucks Reserve store in India at its Flagship Mumbai location. • Launched special festive blends for Diwali and Christ
Slide 53: Press release: management comment and about the company
Foods categories. Our new engines of growth- Tata Sampann, Tata Soulfull and NourishCo have continued their strong growth trajectory and collectively account for 13% of our India business now. Tata Starbucks has delivered yet another strong quarter with the addition of 47 stores across 12 cities so
Slide 54: Disclaimer continuation and company address
government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy.
Tata Consumer Products — Q3 FY2023 Earnings Presentation on 6ix