TATA CONSUMER PRODUCTS LIMITED has informed the Exchange about Investor Presentation
October 31, 2023
National Stock Exchange of India Limited Exchange Plaza, C-1, G Block Bandra Kurla Complex, Bandra (E) Mumbai 400 051 Scrip Code – TATACONSUM
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001
Scrip Code – 500800
The Calcutta Stock Exchange Limited 7 Lyons Range Kolkata 700 001 Scrip Code – 10000027 (Demat) 27 (Physical)
Sub: Investors Presentation on Financial Results for the quarter and half year ended September 30, 2023
Dear Sir/Madam,
In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we are submitting the Investors Presentation concerning the Unaudited Financial Results of the Company for the quarter and half year ended September 30, 2023.
Additionally, the above presentation is also being made available on the website of the Company https://www.tataconsumer.com/investors/investor-relations/results-and-presentation/analyst- at presentation
Thanking you,
Yours Sincerely,
For Tata Consumer Products Limited
Neelabja Chakrabarty Company Secretary & Compliance Officer
Encl as above
11/13 Botawala Building 1st Floor Office No 2-6 Horniman Circle Fort Mumbai 400 001 India Tel: 91-22-6121-8400 | Fax: 91-22-61218499 Registered Office: 1, Bishop Lefroy Road, Kolkata – 700 020 Corporate Identity Number (CIN): L15491WB1962PLC031425 Email: investor.relations@tataconsumer.com Website: www.tataconsumer.com
Public
Investor Presentation
For the quarter ended September 2023
31st October 2023
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 expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, 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. The company cannot, therefore, guarantee that the ‘forward-looking’ statements made herein shall be realized. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events.
2
Agenda
Executive summary
Performance overview
Progress against strategic priorities
Macro environment
Business performance
Financial performance
Concluding remarks
Other
33
We are Tata Consumer Products
In a nutshell
Integrated F&B company with rich heritage of Tata, aspiring for a larger share of the FMCG World
#2 branded tea player globally
₹ 13.8K crore consolidated revenue in FY23 with a market cap of ~₹81k* Cr
Reach of 200mn+ households in India and distribute to 3.8mn retail outlets
Largest salt brand in India
2nd Largest tea brand in India
3rd largest tea brand in UK & largest tea brand in Canada
4th largest R&G coffee brand in USA
National brand in pulses, spices, dry fruits and other staples
#1 natural mineral water brand in India
* As of 30th September 2023
Among the top 10 FMCG companies in India
~3500+ employees worldwide
4
Executive Summary
We delivered yet another strong quarter with consolidated revenue growth of 11% (10% constant currency) driven by strong growth
across our India businesses. This brought the 4-year revenue CAGR to 12% in Q2FY24. During the quarter:
o India Beverages1 grew 8%, with tea volumes growing 3% YoY. NourishCo grew 25% YoY, bringing H1FY24 growth to 44%. o India Foods2 grew 16% with volumes up 6%. Tata Sampann delivered yet another strong quarter, growing 47% YoY. o International business recorded 13% revenue growth (8% constant currency) with EBIT growth of 60%.
Momentum continued in ‘India Growth’ 3 businesses – combined, they grew 39% and accounted for 18% of the India business during the
quarter.
Consolidated EBITDA grew 30%. The EBITDA margin expanded by 220bps YoY, primarily led by improved profitability in International and
non-branded businesses. The profitability profile of our growth businesses also improved significantly.
On a MAT basis, our tea and salt businesses saw a marginal share loss. We continued to focus on innovation with i2s (Innovation-to-Sales) at 5%+ in our India business for the second quarter in a row. We also
expanded our addressable market by entering new categories across business segments.
We achieved new milestones in our S&D journey, expanding our total reach to 3.8m outlets as of Sep’23. We also continued to strengthen
our distribution in Rurban, with all 50k+ population towns now being serviced by a direct distributor.
In line with our simplification agenda, we are amalgamating our wholly-owned subsidiaries viz. NourishCo Beverages Ltd., Tata Consumer Soulfull Pvt. Ltd., and Tata SmartFoodz Ltd. with the parent entity. This is expected to result in synergies and savings.
1 Includes NourishCo revenue, but volume doesn’t include Nourishco volumes 2 Includes Tata Soulfull, Sampann Yumside revenues. Volume doesn’t include Soulfull/Sampann Yumside volumes 3 Includes Nourishco, Tata Sampann, Tata Soulfull, and Tata Sampann Yumside businesses.
66
US Coffee
International Tea*
Tata Coffee (incl. Vietnam)
Consolidated
Key Businesses Snapshot – Q2FY24
In ₹ Cr (unless specified)
Revenue
Revenue growth
Constant currency growth
India Beverages
1,337
8%
India Foods
1,066
16%
350
-7%
-10%
600
30% [16%]*
23% [8%]*
Volume growth
3%
6%
-13%
15% [-5%]*
Key Brands
Notes:
a) India Beverages revenue includes India Packaged Beverages and NourishCo, but volume doesn’t include NourishCo volumes
b) India Foods revenue includes Tata Soulfull and Tata SmartFoodz
c) International tea business includes UK, Canada, USA, Australia, Europe, Middle East, South Africa and Bangladesh
d) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)
e) Consolidated revenue includes other non-branded business and Inter-segment eliminations
* [ ] Revenue growth on a like-to-like basis, excluding the impact of Joekels and Bangladesh stake consolidation that happened in Q4FY23
3,734
11% [9%]*
10% [8%]
348
2%
1%
-9%
8 8
US Coffee
International Tea*
Tata Coffee (incl. Vietnam)
Consolidated
Key Businesses Snapshot – H1FY24
In ₹ Cr (unless specified)
Revenue
Revenue growth
Constant currency growth
India Beverages
2,781
9%
India Foods
2,099
19%
714
-2%
-8%
1,130
20% [8%]*
15% [2%]*
Volume growth
3%
6%
-12%
11% [-8%]*
Key Brands
Notes:
a) India Beverages revenue includes India Packaged Beverages and NourishCo, but volume doesn’t include NourishCo volumes
b) India Foods revenue includes Tata Soulfull and Tata SmartFoodz
c) International tea business includes UK, Canada, USA, Australia, Europe, Middle East, South Africa and Bangladesh
d) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)
e) Consolidated revenue includes other non-branded business and Inter-segment eliminations
* [ ] Revenue growth on a like-to-like basis, excluding the impact of Joekels and Bangladesh stake consolidation that happened in Q4FY23
7,475
12% [10%]*
10% [8.5%]
688
7%
5%
-7%
9 9
Summary of Group Performance – Q2FY24
₹ 3,734 Cr.
₹ 569 Cr.
₹ 505 Cr.
₹ 364 Cr.
₹ 375 Cr.
₹ 2,526 Cr.
Revenue
EBITDA
PBT (bei)^
Group Net Profit
Group Net Profit (bei)^
Net Cash$
Growth (YoY)
11% [10%]
Margin
30%
15.2%
36%
13.5%
-7%
9.7%
24%
10.0%
Margin expansion (YoY)
+220bps
+250bps
-180bps
+100bps
EPS (Basic)
EPS growth (YoY)
[ ] Constant currency growth.
^ before exceptional items.
3.64
2%*
$ Cash and cash equivalents (net of total borrowings) as of 30 Sep 2023.
* EPS growth and Group Net profit growth rates are different on account of higher share of non controlling interest in previous year.
10 10
Summary of Group Performance – H1FY24
₹ 7,475 Cr.
₹ 1,116 Cr.
₹ 1,000 Cr.
₹ 702 Cr.
₹ 716 Cr.
₹ 2,526 Cr.
Revenue
EBITDA
PBT (bei)^
Group Net Profit
Group Net Profit (bei)^
Net Cash$
Growth (YoY)
12% [10%]
Margin
24%
14.9%
29%
13.4%
5%
9.4%
20%
9.6%
Margin expansion (YoY)
+150bps
+180bps
-60bps
+60bps
EPS (Basic)
EPS growth (YoY)
[ ] Constant currency growth.
^ before exceptional items.
7.05
11%*
$ Cash and cash equivalents (net of total borrowings) as of 30 Sep 2023.
* EPS growth and Group Net profit growth rates are different on account of higher share of non controlling interest in previous year.
11 11
Strategic Priorities
The picture can't be displayed.
Strengthen & accelerate core business
Drive Digital & Innovation
Unlock synergies
Create Future Ready Org
Explore new opportunities
Embed sustainability
13 13
New milestones in S&D; momentum continues in alternate channels
3.8m (Sep’23)
Modern Trade
Total Reach
H1FY24 revenue growth
Direct Reach
H1FY24 new SKUs on shelves
1.5m (Sep’23)
E-commerce
Total reach of 3.8m outlets as of Sep’23, almost doubling total
H1FY24 revenue growth
reach since Sep’20.
Completed the implementation of split routes for salesmen in Ten Lac Plus Population (TLP) towns increasing our bandwidth at the front-end.
Rurban focus – Added over 1,000 new distributors so far this year. All 50k+ population towns now have a direct distributor offering better visibility and control.
H1FY24 NPD contribution
H1FY24 new SKUs launched
14 14
India Business – Powering our brands
Chakra Gold Leaf Premium Leaf Tea was launched with a campaign ‘The Choice of Success’ with Rashmika Mandanna as its brand ambassador.
Tata Salt’s new campaign ‘Tez Baccho Se Hi Toh Tez Desh Banta Hain’ emphasizes the crucial role of iodine in cognitive development.
Kanan Devan leverages its provenance story, brining alive its pure and natural proposition by showcasing its Munnar tea estates.
1 Source: Nielsen – MAT basis, Sep’23 vs Sep’22
Public
digital
Consistent us successfully strengthening Tata Sampann’s brand health.
campaigns
helping
Q2FY24 A&P-to-Sales (India Branded Business)
6.7%
Market share – Tea
Volume -37 bps1 Value -95 bps1
Market share – Salt
Value -44 bps1
15
Continuing the momentum on innovation (1/2)
Say Never! Energy Drink
Tata Gluco Plus Sports Drink
Filter Coffee Decoction
Foray into the energy drinks category tapping into consumers’ need for functional beverages
Isotonic sports drink introduced in partnership with the Argentina Football Association
Novel and convenient format with unique blends in three region-specific flavors
Tata Tea Gold Vita Care
Tetley Digest and Immuno Chai
Tata GoFit Apple Cider Vinegar
Vitamin enriched black tea with an appealing taste
Black tea offerings to keep up with the consumer demand for health and wellness
ACV with ‘mother’ (unfiltered and unrefined)
16
Continuing the momentum on innovation (2/2)
Tata Soulfull Ragi Bites Choco Sticks
Tata Simply Better Cold Pressed Oils
Tata Sampann Vermicelli
Millet-based wafer sticks with chocolate filling, unlocking the goodness of millets in an exciting format for kids
Cold-pressed oils launched in coconut, mustard, sesame, and groundnut variants
Entry into the fast-growing vermicelli category with the launch of roasted, unroasted, and millet vermicelli
Tata Sampann Walnuts and Seeds
Tata Sampann Gulab Jamun Mix
Tata Sampann Saffron
Launched our range of seeds and walnuts as a premium extension to our dry fruits' portfolio
Launched a mix for one of India’s most loved and widely made-at-home desserts
Leveraging Tata Sampann’s equity to enter a high-value, trust deficit category
17
Momentum continues in the new Engines of Growth
Growth Businesses as a % of India Branded Business
18%
15%
15%
10%
8%
6%
Combined YoY revenue growth Q2FY24
FY20
FY21
FY22
FY23
Q2'23
Q2'24
Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, the RTE/RTC business (Tata Smartfooz). Tata Soulfull & Tata SmartFoodZ became subsidiaries effective Feb’21 & Nov’21, respectively.
18 18
Reaffirming our commitment to sustainability
We have announced our sustainability targets for FY 2025-26, in line with our long-term sustainability commitments.
Climate Adaptation Carbon neutral on Scope 1 and Scope 2 across all geographies 35% of all power requirement to be from renewable sources
Circular Economy Zero Waste to Landfill across our operations in all geographies 70% of packaging material to be recyclable, compostable, or reusable across all geographies
People and Community 1.75 million beneficiaries to be benefitted via community initiatives 100% operations ISO 45000 certified 35% women participation in global workforce across geographies
19
19
Key Commodities’ movement
N. India Tea (INR/kg)
S. India Tea (INR/kg)
Kenya Tea ($c/kg)
Arabica Coffee ($c/lbs)
Robusta Coffee ($c/lbs)
Tea
Coffee
233
186
191
188
100
'
2 2 2 Q
101
'
2 2 3 Q
246
149
115
'
2 2 4 Q
229
212
224
195
101
'
3 2 1 Q
104
'
3 2 2 Q
234
177
117
'
3 2 3 Q
217
208
208
197
195
144
128
'
3 2 4 Q
112
'
4 2 1 Q
102
'
4 2 2 Q
236
225
223
222
177
86
'
2 2 2 Q
105
103
94
96
'
2 2 3 Q
'
2 2 4 Q
'
3 2 1 Q
'
3 2 2 Q
177
173
88
'
3 2 3 Q
93
'
3 2 4 Q
185
119
156
122
'
4 2 1 Q
'
4 2 2 Q
• North India tea prices remained stable YoY as production remained
• Arabica prices for the quarter continued to remain soft, down
steady.
nearly 30% YoY.
• Similarly, South India tea prices during the quarter were also
stable/flat YoY.
• Kenyan tea prices remained rangebound sequentially but were
• Robusta prices stabilized during the quarter and have continued to see declines until the end of Sep’23. Averages prices for the quarter, however, remain higher YoY.
down slightly YoY.
Source: North India and South India tea auction (Tea Board of India) Mombasa tea auction (EATTA) | International Coffee Exchange
21
21
Market context – category growth rates (value)
+4.0%
+0.9%
+0.1%
US Regular Black Tea
US Bags Coffee
US K-cup Coffee
Source: Nielsen: 12 weeks (Value) – Sep’23
+18.8%
+11.3%
5.2%
3.4%
6.2%
UK Regular Black Tea
UK Fruit & Herbals Tea
Canada Regular Black Tea
Canada Speciality Tea
India Branded Tea
22
India Packaged Beverages
New Launch - Tetley Premium Black Leaf Tea with added long leaves that give strong taste and rich aroma
+5%
Revenue Growth
Performance commentary • Revenue for the quarter grew 5%, with 3% volume growth, recording a
third consecutive quarter of positive volume growth.
• This brings the 4-year revenue CAGR of
the business to 9% in
Q2FY24.
• Premium brands outperformed popular and economy brands.
• Coffee revenue grew 17% YoY during the quarter.
New launch - Tata Coffee Quick Filter Range of Decoction Coffees inspired by regional tastes of South India.
Tata Tea Premium celebrated its Independence with that #DeshKeDhaage Campaign rich India’s paid handloom legacy
homage
Day
to
+3% Volume Growth1
-95bps Tea Market Share2
Other updates • Tata Consumer maintained market leadership in tea in the E-com
channel for the 30th consecutive month.
• Tata Tea Premium won 2 silvers and 1 Bronze in the Indian Digital Marketing Awards (IDMA) 2023 for use of breakthrough technology, best use of AI, and best microsite in digital campaigns.
Note: all numbers in the grey panel are for Q2FY24, and growth is vs Q2FY23 unless specified otherwise 1 Tea volume growth 2 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Sep’23 vs Sep’22
24 24
India Foods
Tata Sampann Spices’ new regional campaigns were driven around consumer testimonials to drive consideration for our spices.
We launched Tata Sampann Unpolished Red Rajma. Small red Kashmiri rajma is 50% of the category and complements our existing range of Tata Sampann chitra rajma.
+16%
Revenue Growth
Performance commentary • Salt revenue grew 8% during the quarter, on a high base of last year (Q2FY23 salt grew 27%). This brings the 4-year revenue CAGR of salt to 16%.
• Tata Sampann delivered yet another strong quarter, growing 47% YoY, with robust volume growth. The 4-year revenue CAGR for Tata Sampann in Q2FY24 stands at 36%, in line with our aspirations.
• The contribution from brands outside the classic Tata Salt (Orange bag) improved, accounting for over 10% of the salt business during the quarter.
Other updates • Our pulses and staples command a 30% share in the e-com channel.
• Shuddh, our solar salt brand, was launched in additional markets
during the quarter.
• Dry fruits had yet another strong quarter growing 70%+.
+6%
Volume Growth
6.6%
Value-added salts contribution to salt revenue
-44bps Salt Market Share1
Note: all numbers in the grey panel are for Q2FY24, and growth is vs Q2FY23 unless specified otherwise 1 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Sep’23 vs Sep’22
25 25
NourishCo (100% Subsidiary)
Performance commentary • NourishCo recorded a revenue growth of 25% during the quarter, bringing H1FY24 growth to 44% despite unfavourable weather conditions.
• The growth was broad based across products and markets.
• Profitability improved significantly YoY led by cost controls and
operating leverage.
172Cr
Revenue*
+25%
Revenue growth
Other updates • Pilot launched our ‘Say Never’ energy drink at Rs. 10 per cup in select
North and South markets.
48%
Revenue growth in Tata Copper+
• We launched the Tata Gluco+ Sports Drink in India, in partnership
with Football World Champions, Argentina.
• Himalayan, now positioned as a provenance brand,
forayed into the premium Kashmiri saffron segment with a grade 1 offering. Each Pack comes with proof of quality and purity, a first in this trust-deficit category.
Note: all numbers in the grey panel are for Q2FY24, and growth is vs Q2FY23 unless specified otherwise
26 26
Himalayan Saffron has received encouraging initial consumer response.
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Performance commentary • Revenue for the quarter grew 1%# led by the extractions business.
• The plantations business recorded a revenue decline of 11%, primarily
led by lower coffee volumes.
• Overall extractions business grew 11%# YoY,
led by Vietnam
operations.
• Tata Coffee’s Vietnam operations continue to deliver strong sales with
improved profitability driven by higher sales of premium products.
• The business saw substantial growth in EBIT led by higher realizations.
Other updates
• The process of obtaining regulatory approvals for the scheme of arrangement between TCPL and Tata Coffee is underway. The matter is currently in the final stages of the process with the NCLTs.
+1%#
Revenue Growth
-11%
Plantations Revenue Growth
+11% #
Extractions Revenue Growth
Note: all numbers in the grey panel are for Q2FY24, and growth is vs Q2FY23 unless specified otherwise # Tata Coffee including Vietnam in constant currency terms. Does not include EOC.
27 27
Tata Starbucks (JV)
Celebrated the spirit of freedom and unity with a beautifully designed mug that pays tribute to India’s rich heritage on Independence Day.
A set of packaged sandwiches and overnight oats were introduced during the quarter.
Taking steps towards coffee leadership in India’s specialty coffee landscape.
Celebrating the transformative power of education on International Day of the Girl Child.
Performance commentary
• Revenue for the quarter grew 14% YoY.
22
Net new stores opened during the quarter
• Added 22 net new stores during the quarter taking net new stores added to 37 in H1FY24. We also entered 2 new cities during the quarter.
• Store profit contribution remained steady, and the business remained
EBIT positive even as we rapidly expanded our store network.
370
Total stores
49
Cities present
Other updates • Focus on highways in store expansion: Highest addition of highway
stores in any quarter.
• Recognized in Top 100 as India's Best Workplaces for Women 2023
by GPTW.
28
International operations
UK
USA
Canada
Revenue for the quarter grew 13% in CC terms (reported revenue growth of 25%).
Coffee revenue for
the quarter declined
Revenue for the quarter grew 8%^ driven by
10%^.
pricing.
The roll out of continued consumer response has been positive.
the revamped Tetley tea and
through
quarter
the
We launched a millet-based muesli range under the brand name Joyfull, in over 430 Tesco stores across the UK.
Our share in the F&H tea category in the UK reached 10% in the month of Sep’23 (8.2% on a MAT basis).
Revenue growth^
+13%
Value market share* (everyday black)
19.5%
EOC released its new ad campaign ‘Coffee Craze’ which will run online and through social platforms.
Tetley continued its outperformance vs the mainstream hot black tea category during the quarter.
Teapigs continued to outpace the specialty
tea category growth.*
Tetley outperformed both the regular tea and the specialty tea categories during the quarter.
Live Teas 2.0 has confirmed listings in
Metro, Walmart, LCL, and Sobeys.
Coffee revenue growth^
Tea revenue growth^
Coffee bags market share*
-10%
-9%
4.1%
Revenue growth^
Revenue growth in specialty tea^
+8%
-9%
Value market share* (overall tea)
27.8%
Note: all numbers in the grey boxes are for Q2FY24, and growth is vs Q2FY23 unless specified otherwise ^ Constant currency * Nielsen – Value share, Moving Annual Total (MAT) basis – Sep’23
29 29
Performance Highlights – Q2FY24
m o r f
e u n e v e R
s n o i t a r e p o
A D T B E
I
Standalone
(in ₹ Cr)
Consolidated
(in ₹ Cr)
2,131
229
2,360
3,363
371
3,734
+11%
+11% [10%]
Q2FY23
Growth
Q2FY24
Q2FY23
Growth
Q2FY24
336
51
387
438
131
569
+15%
+30%
Q2FY23
Growth
Q2FY24
Q2FY23
Growth
Q2FY24
[ ] constant currency growth
Consolidated revenue grew 11% (10% in constant
currency terms) to Rs 3,734 Crs.
• Our India business grew 11%.
• Constant currency (CC) growth in the International
business was 8%. Growth was flat excluding
acquisitions.
• The non-branded business grew 3% in CC terms.
Consolidated EBITDA at Rs 569 Crs. (+30% YoY) with
EBITDA margin at 15.2%.
• The India business EBITDA grew 11% YoY.
EBITDA margin at 15.7% was in line with last year.
•
International business EBTIDA grew 49% (CC)
YoY. EBITDA margin expanded 330bps to 12.4%,
mainly driven by pricing interventions and savings
from restructuring.
• EBITDA for the non-branded business grew 61%
(CC). EBITDA margin expanded 700bps, mainly
due to better realizations.
31 31
Performance Highlights – H1FY24
m o r f
e u n e v e R
s n o i t a r e p o
A D T B E
I
Standalone
(in ₹ Cr)
Consolidated
(in ₹ Cr)
4,208
468
4,676
6,690
785
7,475
+11%
+12% [10%]
H1FY23
Growth
H1FY24
H1FY23
Growth
H1FY24
100
743
218
1,116
643
897
+16%
+24%
H1FY23
Growth
H1FY24
H1FY23
Growth
H1FY24
[ ] constant currency growth
Consolidated revenue grew 12% (10% in constant
currency) to Rs 7,475 Crs.
• Our India business grew 13%.
• Constant currency (CC) growth in the International
business was 5%. Revenue declined 2% excluding
the impact of acquisitions.
• The non-branded business grew 4% in CC terms.
Consolidated EBITDA at Rs 1,116 Crs. (+24% YoY)
with EBITDA margin at 14.9%.
• The India business EBITDA grew 15% YoY.
EBITDA margin at 15.2%, expanded 20bps YoY.
•
International business EBTIDA grew 24% (CC)
YoY. EBITDA margin expanded 200bps to 13.9%,
mainly driven by pricing interventions, and savings
from restructuring.
• EBITDA for the non-branded business grew 37%
(CC). EBITDA margin expanded 450bps, mainly
due to better realizations.
32 32
Financials: Consolidated
Quarter ended Sep’23
Q2FY24
Q2FY23
Change %
Profit and Loss statement
(all nos. in ₹ Crores)
Year-to-date Sep’23
H1FY24
H1FY23
Change %
3,734
569
15.2 %
475
12.7 %
505
(15)
(132)
359
9.6 %
364
3,363
438
13.0%
365
10.8%
370
111
(127)
355
10.6%
389
11%
30%
Revenue from operations
EBITDA
%
30%
EBIT
%
36%
PBT before exceptional items
Exceptional items
1%
Tax
PAT
%
(7)%
Group Net Profit (incl. JVs & Associates)
7,475
1,116
14.9%
940
12.6 %
1,000
(20)
(263)
718
9.6 %
702
6,690
897
13.4%
751
11.2 %
774
87
(230)
631
9.4 %
666
12 %
24 %
25%
29%
14 %
5%
Group Net Profit (GNP) for Q2FY24 was Rs 364 Crs, down 7% YoY, due to an exceptional income on sale of land last year. GNP (before exceptional items) at Rs 375 Crs, grew 24% YoY, led by -
• •
• •
Revenue growth of 11%. EBITDA margin expansion on account of pricing interventions in most of our international markets, softening of commodity costs, and better operating cost controls. Higher other operating income. Partly offset by adverse performance of APPL.
Group Net Profit (GNP) for H1FY24 was up 5% YoY , despite an exceptional income on sale of land in the base period. GNP (before exceptional items) at Rs 716 Crs, grew 20% YoY led by:
• •
• •
Revenue growth of 12%. EBITDA margin expansion on account of pricing interventions that offset overall cost increases. Higher other operating income. Partly offset by adverse performance of APPL.
33
33
Financials: Standalone
Quarter ended Sep’23
Q2FY24
Q2FY23
Change %
Profit and Loss statement
(all nos. in ₹ Crores)
Year-to-date Sep’23
Q2FY24
Q2FY23
Change %
2,360
387
16.4 %
345
14.6 %
376
(15)
(93)
268
2,131
336
15.8%
300
14.1%
317
(7)
(80)
230
11%
15%
Revenue from operations
EBITDA
%
15%
EBIT
%
19%
PBT before exceptional items
Exceptional items
Tax
PAT
17%
4,676
743
15.9%
663
14.2 %
755
(20)
(182)
553
4,208
643
15.3%
572
13.6%
635
(18)
(155)
462
11%
16%
16%
19%
20%
Net profit for Q2FY24 at Rs 268 Crs, up 17% led by: •
Revenue growth of 11%, driven by strong growth in our branded businesses. EBITDA margin improvement. Higher interest income.
• •
Net profit for H1FY24 at Rs 553 Crs, up 20% led by: •
Revenue growth of 11%, driven by strong growth in our branded businesses. EBITDA margin improvement Higher interest income.
• •
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34
Segment-wise Performance Q2FY24
Particulars
Segment Revenue
Segment Results
₹ Cr
Q2 FY24 Q2 FY23
Change
Q2 FY24 Q2 FY23
Change
India Business
2,404
2,160
11%
International Business
950
839
13%
Total Branded Business
3,354
2,999
12%
Non Branded Business
Others / Unallocated items
388
(8)
372
(8)
4%
331
96
426
57
7
308
7%
60
60%
367
16%
90%
30
84
Total
3,734
3,363
11%
491
482
2%
Revenue – Branded business
72% India Business
28% International Business
Segment Results – Branded business
78% India Business
22% International Business
35 35
Segment-wise Performance H1FY24
Particulars
Segment Revenue
Segment Results
₹ Cr
Q2 FY24 Q2 FY23
Change
Q2 FY24 Q2 FY23
Change
India Business
4,882
4,305
13%
International Business
1,845
1,675
10%
Total Branded Business
6,727
5,981
12%
Non Branded Business
Others / Unallocated items
765
(17)
724
(14)
6%
659
212
871
107
3
581
164
745
69
47
13%
29%
17%
54%
Total
7,475
6,690
12%
980
861
14%
Revenue – Branded business
73% India Business
27% International Business
Segment Results – Branded business
76% India Business
24% International Business
36 36
To conclude
Macros
We have seen stable demand trends in India business and remain cautiously optimistic.
Both, the branded tea and branded coffee categories, continue to face demand headwinds in our International markets, even as we have
delivered a competitive performance.
Business
In Q2FY24, we yet again delivered double-digit top line growth with significant EBITDA margin expansion.
The interventions we put in place for our India tea business continue to yield positive results resulting in a third consecutive quarter of volume-led growth. The volume growth, however, remains below our medium-term aspirations.
In Salt business, despite steep price increases taken over last year, we have seen volume growth and consistent premiumization at play. Growth for the salt business in the remainder of FY24 will be volume-led.
Our growth businesses continued their strong trajectory and have increased their contribution significantly, in line with our portfolio transformation ambition. Tata Sampann delivered another quarter of standout performance, led by robust volume growth. NourishCo grew 44% YoY in H1FY24.
Our JV, Tata Starbucks now has 370 stores across 49 cities.
In the international business, pricing actions and structural interventions have helped improve margins, even as we ploughed some of that back in A&P to continue strengthening our brands.
Post NCLT approval, we expect to complete the merger of the Tata Coffee business in this financial year.
38 38
Q&A
Quarter Ended June’20
39
Shareholding information
Quarter Ended June’20
Stock data
BSE Ticker
NSE Ticker
500800
TATACONSUM
Market Capitalization (Sep 30, 2023)
₹ 814.7 bn
Number of Shares Outstanding
929.0 Mn
Pattern as on 30th September, 2023
Others 5%
Individual 19%
MFs/ UTI/ AIFs 6%
Insurance Companies/ Banks 10%
Promoter and promoter Group 35%
Foreign Institutional Investors 25%
4141
Thank You
For more information Institutional investors – Contact Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com
Kaiwan Olia Manager – Investor Relations Kaiwan.olia@tataconsumer.com
Retail investors - Contact investor.relations@tataconsumer.com
Call us at +91-22-61218400
For media queries nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com
Last 10-year financials are available on Historical financial data
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