0

TATA
February 02,2021

The National Stock Exchange of BSE Ltd. The Calcutta Stock

India Ltd. Corporate Relationship Dept. Exchange Ltd.
Exchange Plaza,5th floor I Floor, New Trading Wing 7 Lyons Range
Plot No. C/1,G Block Rotunda Building, PJ Towers Kolkata700001
Bandra Kurla Complex Dalal Street Scrip Code - 10000027
Bandra (E) Mumbai40000l (Demat)
Mumbai 400 051 Scrip Code - 500800 27 (Physical)
Scrip Code - TATACONSUM

Sub: Analysts Presentation - Financial results for the quarter and nine-months ended December
31,2020

Dear Sir/Madam,

Further to our letter dated January 15, 2021, and January 18, 2021, we enclose herewith a copy of the
Presentation for the analysts/investors on the financial results for the quarter and nine months ended
December 31,2020.

The same is also uploaded on the Company's website www.tataconsumer.com.

This is for your information and records.

Yours faithfully,
For Tafa Consumer Products Limited

Neelabja Chakrabarty
Company Secretary

End: as above

TATA CONSUMER PRODUCTS LIMITED

(Formerly known asTata Global Beverages Limited)
11/13 Botawa!a 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: [email protected]
Website: www.tataconsumer.com
Investor
Presentation
For the quarter ended December 2020

2nd February’21
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

Macros Business performance – Business performance

India – International

Financial performance Outlook

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

₹ 9.6K crore consolidated Reach to almost 200mn

revenue in FY20 and current households in India and
market cap of ~₹54k Cr. distribution to ~2.4mm retail
outlets

Largest salt brand in India 2nd Largest tea brand in 4th largest tea brand in UK &
India largest tea brand in Canada

Among the top 10 F&B ~2900 employees worldwide

4th largest R&G coffee Leading National brand #1 natural mineral water companies in India
brand in USA in pulses in India brand in India

4
 Executive Summary (Quarter ended 31st Dec’ 20)
 During the quarter, Consolidated Revenue grew 23% with Group Net Profit growth of 29%.

 India business topline accelerated sequentially while International markets also delivered strong performance.

 Overall, India business# grew 36% led by

o India Packaged Beverages business grew 43%, with 10% volume growth

o India Foods business grew 19%, with 12% volume growth

o Sequential improvement in NourishCo’s performance, with a 9% revenue growth

 Branded International business (ex Foodservice) grew 13%, with an underlying (constant currency) growth of 7%.

 Consolidated EBITDA for the quarter is up 12% YoY, with strong margin delivery in International & India Foods business. While India tea business
faced margin pressure during the quarter, the YTD margins have been largely stable despite a period of hyper inflation in raw tea prices.

 We moved forward with our transformation journey while maintaining our focus on volume growth & competitive market share performance.

 We continued to invest behind our brands to drive long term growth. Additionally, we continued to focus on building blocks for the future – S&D
infrastructure, Digital, A&P & Innovation.

 In line with our strategic intent of entering new adjacent categories in the food space, we have entered into an agreement to acquire 100%
equity stake in Kottaram Agro Foods Pvt Limited (Soulfull).

 Additionally, we exited the coffee business in Australia in line with our portfolio rebalancing strategy.

#including impact of NourishCo as a subsidiary effective May’20.

All growth numbers are vs same quarter previous year, unless specified otherwise 6
Key Businesses snapshot – Q3FY21

International Business

In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated

(unless specified) Foods Tea (International) (incl. Vietnam)

Revenue 1,275 631 321 549 56 212 3,070

Revenue Growth 46% 19% 11% 14% -28% 1% 23%

Constant currency growth 6% 7% -31% 0% 21%

Volume Growth 10% 12% 7% 6% -25% -4%

Key Brands

Note:
a) India Beverages includes Middle East and NourishCo (subsidiary effective May’20)
b) International tea business includes UK, Canada, US, Aus and Europe.
c) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)
d) Consolidated revenue includes other non-branded business and Inter-segment eliminations

8
Key Businesses snapshot – 9MFY21

International Business

In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated

(unless specified) Foods Tea (International) (incl. Vietnam)

Revenue 3,396 1,800 980 1468 146 684 8,565

Revenue Growth 30% 17% 19% 13% -36% 10% 18%

Constant currency growth 12% 6% -40% 8% 16%

Volume Growth 8% 9% 10% 4% -35% 6%

Key Brands

Note:
a) India Beverages includes Middle East and NourishCo (subsidiary effective May’20)
b) International tea business includes UK, Canada, US, Aus and Europe.
c) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)
d) Consolidated revenue includes other non-branded business and Inter-segment eliminations

9
Group Performance at a glance – Q3FY21

₹ 3,070 Cr. ₹ 365 Cr. ₹ 298 Cr. ₹ 237 Cr. ₹ 1,550 Cr.
Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$

Growth (Y-on-Y) 23% 12% 13% 29%

Margin% 11.9% 9.7% 7.7%

Margin expansion
-120 bps -90 bps +30 bps
(Y-on-Y)
2.37 (EPS)
EPS

+29% (EPS)
EPS Growth (Y-on-Y)

^ PBT before exceptional items

$ Cash and Cash equivalents (net of total borrowings) as at Dec 31, 2020

10
Group Performance at a glance – 9MFY21

₹ 8,565 Cr. ₹ 1,253 Cr. ₹ 1,080 Cr. ₹ 856 Cr. ₹ 1,550 Cr.
Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$

Growth (Y-on-Y) 18% 26% 29% 47%

Margin% 14.6% 12.6% 10.0%

Margin expansion
+80 bps +100 bps +190 bps
(Y-on-Y)
8.71 (EPS)
EPS

+50% (EPS)
EPS Growth (Y-on-Y)

^ PBT before exceptional items

$ Cash and Cash equivalents (net of total borrowings) as at Dec 31, 2020

11
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
Strengthening & powering our brands
Tata Tea Gold - Shoojit Sircar directed film
celebrates the unique Bengali culture code of
extreme connoisseurship in F&B choices

#Spiceupyourhealth – Digital campaign aimed to

drive awareness around natural oils in spices &
TATA Tea Chakra Gold, became the first TATA Sampann brand proposition
Tea brand to partner with an IPL team.

Launch of new national

campaign to increase
awareness of the
importance of iodine for
kids’ mental
development– Tata Salt

First TV commercial
for Tata Rock Salt
premiered on KBC
and Sony Liv in
December
14
Fueling the Innovation Funnel - India
Tata Tea Tulsi Tetley Green Tea Tata Tea Tata Sampann Tata Tea
Immune Gold Care Poha (Thin) Quick Chai

Goodness of green tea now Green tea now with immunity Tata Tea Gold with a blend High in fiber and a source Pre-boiled tea in exciting
with immunity boosting power power of added Vitamin C of five herbs and spices of protein flavors of Masala and
of Tulsi Ginger
 Fueling the Innovation Funnel - International
UK USA Australia & Canada

Tetley Tea Good Earth Tetley British blends Quick Chai/ Tata Coffee Tetley Tea Tetley Immune+

Range of herbal infusions Good Earth Tetley British Blends Lift and Shift launches from Naturally fortified range of 2 more Super Teas
from the UK tea brand. Kombucha brewed uniquely crafted with India to USA tea/herbal variants for launched in Canada –
from the finest black character notes from around Australia market strengthening our
teas and the loveliest the world credentials in Health
live cultures. and Wellness space

16
Unlocking synergies
Broad timelines Status
Mar’20 Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21
• Integration expected to be substantially
Integrated Org structure completed by Q4 FY21; to enable better
Future Ready execution of strategic roadmap
Process Harmonization
Organization • Synergy identification completed and
Synergies Identification On track to realize synergy estimates realization started from Q3 FY21
S&Dstructure
S&D structure design
design • Distribution channel partner consolidation
Unlock Integrated S&D design implementation done
synergies –
S&D Outlet expansion (2x) • Channel partner digitization completed for
Digitization across partners and field force urban distributors

Unlock
• Integration of India ERP on track and will
synergies -
CFA Consolidation and Direct Delivery go-live in Q4FY21.
India Supply Integrated Business Planning • CFA locations consolidated for North &
Chain East. Pan India consolidation to be
complete by Q4.
ERP Integration

Drive Digital Transport and Warehouse Management system

• Integrated Business Planning Phase I
(Demand planning) is live and Phase II
Process Automation across functions will go live in Q4FY21.

Completed In Process

17
India integration update – S&D impact
Combined F&B portfolio Consolidation of distributors Dedicated Sales Reps Outlets billed

December ‘20 December ‘20

Selling the combined

F&B portfolio to
100% of distributors March ‘20
March ‘20
Mar'20 Dec'20

Rural feet on street Modern Trade & Ecommerce Channel partner automation Accounts Receivables (days)

• Exclusive distributors

• Direct servicing model

March ‘20 December ‘20

December ‘20 Vs. March ‘20 Mar'20 Dec'20

18
New engines of growth
Sampann Values Added Salt

Coffee Nourishco

19
 Acquisition of Kottaram Agro Foods Pvt. Ltd.
Summary Transaction Overview
 In line with one of our strategic priorities to expand into new categories, we  Acquisition of 100% shares in Kottaram Agro Foods Pvt. for a
have entered in a SPA to acquire Kottaram Agro Foods Pvt. Ltd, the owner consideration of ~Rs.156cr and future consideration linked to
of the brand “Soulfull”. achievement of certain milestones.
 The tuck-in acquisition will enable us to have a wider play in the “Better for  Company to become a 100% subsidiary of Tata Consumer Products.
You” products category, leveraging their expertise in millets such as Ragi.
 Transaction expected to close in Q4FY21.
 The product portfolio straddles multiple consumption occasions - breakfast,
 Soulfull to be integrated with TCPL, including its Sales & Distribution
snacking, mini-meals.
system.
 Convenient, healthy offerings targeted for millennial families, kids and
 The Founders and the key management team to continue with the
discerning health-conscious adults.
Company.
 Soulfull is a strong brand built in select urban markets with a reach of
c.15,000 outlets, offering significant potential for geographic expansion.
 Led by young, passionate, purpose-led management team.
 In-house manufacturing and R&D capabilities.
 Strategy for portfolio expansion with a strong NPD pipeline.

Ragi Bites Millet Muesli Smoothix Oat Millets Meal

“Tata Soulfull” to leverage the Tata Consumer platform to expand its addressable market and accelerate growth

20
 Strategic fit for our Health & Wellness portfolio
Value Creation Key synergies with TCPL
 Build a platform with differentiated offerings in the Health & Wellness space  Significant scope to expand distribution - 15,000 outlets (Soulfull) vs 2.4m
(estimated market size of Rs. 20,000 Cr.) total numeric reach (TCPL)
 Adjacent to the core category of “For Better” food products offered by TCPL  Scope to unlock synergies in S&D, procurement/ manufacturing/ logistics
 Access to a fast growing brand with a new addressable Target Group  Addition of ‘TATA’ to strengthen brand’s credentials
 Gives TCPL an opportunity to expand the portfolio into -  Leverage our R&D capabilities for building a platform for the future
 On-the-Table / On-the-Go categories  Strong & passionate team to be supplemented with TCPL expertise
 New consumption occasions – RTE breakfast, snacking, mini-meals
Timelines
 Fast growing category - cereals, mini meals, healthy snacks, protein
drinks, etc. (Categories growing @ 15%+)  Definitive Agreements signed
 Explore innovative formats in-line with current consumption trends  Post closing activities to be completed by Q4, 2021
 Margin accretive addition to the business  Operational integration with TCPL to commence shortly after closing and be
completed within Q1 / Q2 FY22

21
Continued focus on ESG
For better planet
 Climate Leadership - TCPL is on CDP A- list in 2020, placing us in CDP’s Leadership band, second year in a row.

 Water Stewardship - Project Jalodari in Himachal and Assam benefitting 25000 people directly.

 Energy consumption - Carbon footprint decreased 26% between 2010-20. 12% of energy consumption is from solar power.
Tata Consumer
Products aims
 Waste management – On target for legislated plastic waste collection in India. UK Plastics Pact – pledge to have 100%
to supportrecyclable/reusable/compostable packaging by 2025.
development
programs for
For better communities

 Sustainable Sourcing - Trustea Programme won CII Food Future Foundation National Award for Sustainable Sourcing in Dec’20. The programme
verifies 680 mn kg of Indian tea, positively impacting over 6,00,000 workers and 57,000 small tea growers.

 Childhood development - UNICEF Malawi project initiated this year. UNICEF Improving Lives program in Assam to reach 250,000 beneficiaries.

 Healthcare- affordable healthcare for 100,000 people in Munnar & Assam. A proud supporter of Canadian Cancer Society through ‘pink pack’ sale
contributing $700,000 since launch.

22
Macro and commodity overview
Sharp recovery in economic activity, post Volatile commodity prices
weakness in Q1 Tea Prices Coffee Prices
%

5.2 190 188 113 115

2.1 4.4 2.3 4.1 3.1 189 $c / KG 111
4.0 203 $c/ LB
2.0 0.3
-0.9
219 272
1.5 1.4 1.2 -2.8 194 ₹ / KG
-2.4 -9.0 -7.5 -2.0
$c/ LB
-8.6 74
104 163 153 ₹ / KG 61 61
-20.8 106
96
-23.9
Q4FY20 Q1FY21 Q2FY21 Q3 FY21 Q3 FY19 Q3 FY20 Q3 FY21
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 E
North India Tea South India Tea
India GDP growth US GDP growth UK GDP growth Kenya Tea Arabica Coffee Robusta Coffee

• India’s GDP growth rate has seen a consistent recovery since Q1F21 with all • While both North India tea and South India tea prices have inflated YoY, the average prices
major economic indicators moving in the right direction. However, for the year, of North India tea have come off considerably from the preceding quarter and the average
the economy is still expected to contract. price of South India tea have come off slightly.
• US & UK GDP growth also rebounded during the quarter. However the • Kenya tea prices have held stable QoQ.
outlook for next quarter remains uncertain given the recent wave of COVID in • Arabica coffee prices saw a slight uptick while Robusta prices held stable YoY.
US & UK and the resulting lockdowns.
Source: North India and South India tea auction (Tea Board of India) | Mombasa tea
auction (EATTA) | International Coffee Exchange

Source: BCG, NSO, tradingeconomics.com and Kotak Institutional Research

24
Quarterly category performance
Growth across most categories and regions • Regular black hot tea category saw
US UK Canada India declines in US in contrast to strong growth
seen in Q1 and further decelerating from
modest growth in Q2. In Canada, the
category had a strong quarter,
+26.4% accelerating from Q2. In UK, Regular
black tea declined again after seeing a
brief period of growth during Q2.

• Non-black tea (Fruit & Herbal, Specialty,

+12.8% +14.2% Decaf, Cold Infusions, etc.) continues to
+9.5% +8.7% +11.2% see strong growth momentum in the UK
and Canada, led by focus on health &
wellness and increased in-home
consumption of tea.

• With gradual normalisation of activity,

-1.3% Indian branded tea segment has
-0.3%
accelerated to a growth of ~14% in Q3
from a growth of ~6% in Q2.

• US Coffee (both Bags and K-cups)

US Regular Black Hot Tea UK Regular Black Tea Canada Regular Black Tea India Branded Tea
US Bags Coffee UK Fruit & Herbals Tea Canada Speciality Tea
continue to come off the highs seen in Q1,
US K-cup Coffee
albeit still growing strongly, with Bags
growth outpacing K-cups.
Source: Nielsen: 12 weeks (Value) – Dec’20

25
India Packaged Beverages
Performance commentary

Celebrating the Diwali season

+43% • Robust & broad-based growth
with most brands recording
high double-digit growth during
• Margins for the quarter impacted
by tea inflation & competitive
pricing but we continued
with special tin packs of Tata Revenue Growth the quarter. momentum on volume growth and
Tea Premium, that pay grew share.
homage to distinct art forms of
Pattachitra, Warli and Phad Art • Continued with market share • YTD EBIT margin still at 14%
gains. despite unprecedented inflation in
tea prices during this period.

Other updates
+10% • A new blend in Low Unit Packs • Restage of Gemini tea in
Volume Growth (LUP) released for Tata Coffee Telangana with high impact
Grand with in-market activation visibility supported with TV
focused on driving trials. Commercial based on regional
insights.
• Restage of Kanan Devan tea in
Kerala with trade activation
coupled with print led awareness

Restage of Gemini
+94bps campaign.

Market Share gain*

Source: Nielsen – Value share, DQ’20 vs DQ’19

Restage of Kanan Devan
 India Foods
• Print initiative “How healthy is your
Performance commentary

19%
haldi” undertaken by Tata • Third consecutive quarter of • Tata Sampann portfolio grew in
Sampann to raise awareness double-digit revenue growth across high double digits with in-home
about the importance of curcumin. the Salt and Tata Sampann consumption normalizing.
Revenue Growth portfolio.
• EBIT margin expanded despite
• Salt revenue grew 19% in Q3 with doubling of advertising spend YoY.
double digit volume growth.

• Continued with market share

gains* with the highest ever sales

12% volume in December.

Volume Growth
Other updates
• Tata Salt won 5 Golds & 6 Silvers • To celebrate World Food Day,
at Flame Awards 2020 organized Tata Sampann and India’s food
by Rural Marketing Association of experts shared insights on
India nutrition in the country
#MissingI print campaign in Times of
India –to reinforce the importance of
2.7x
iodine in one’s diet on World Iodine Value-added salts
Deficiency Day (21st October). portfolio#
* Source: Kantar World Panel
# 167% revenue growth during the quarter.

28
 NourishCo (100% Subsidiary) *

Performance commentary
Sales as a % of PY

109%

33Cr
• Revenue back in growth trajectory • TWP achieved highest ever
82% with strong growth momentum in volume growth in December.
62% December.
Revenue
• Strong cost optimization in
• Tata Gluco Plus and Tata Water Himalayan yielding results.
Plus key drivers of growth during
the quarter.

Q1 FY21 Q2 FY21 Q3 FY21

9%
Revenue growth
Other updates
• Geographic expansion plan • Distribution footprint of
underway. Himalayan expanded since its
transition to own network.

1.6x
• Innovation pipeline in progress. • Capacity expansion for TWP in
core and new geographies via
co-packer model.
Tata Water Plus#
Himalayan glass bottle, Tata Water Plus – India’s first Nutrient Water with
Copper, Tata Gluco Plus Diwali Gift Pack * NourishCo performance for the quarter as separate legal entity
# 60% revenue growth during the quarter

29
Tata Coffee (inc Vietnam) (~58% Subsidiary)
Performance commentary
Tata Coffee’s Tamil

+1%#
Nadu and Vietnam • Topline grew 1% led by Vietnam Extractions
coffee extraction plants extractions business and tea • Overall extraction business
produce and export plantations which helped offset declined 3% in value terms – as
some of the finest Revenue Growth the decline in India extractions decline in domestic extractions
instant coffee. business. revenue more than offset the
growth in Vietnam business.

Plantations
• Extractions business was
• Robust value growth in Tea impacted by global shortage of
+6% (better realization) and Pepper
(better volumes) while Coffee
revenue was lower.
shipping containers and further
lockdowns in Europe.
Plantations
Revenue Growth

Other updates

-3%
• Vietnam plant now operating at • New product development gaining
~93% capacity. traction.

Extractions
Revenue Growth

# Tata Coffee including Vietnam. Does not include EOC

Tata Coffee has built 274 tanks which save ~3.4 Mn cubic meters
water every year through its rainwater harvesting efforts.
30
Tata Starbucks (JV)
Performance commentary

92% • Revenue on an upward trajectory

with Dec ~90% of last year (77%
on a like for like basis).
• Opened 13 new stores & entered 3
new cities during the quarter,
bringing the YTD new store count to
Stores re-opened 24.
• Non metro cities recovering faster.
• Dine-in capacity still at 50%,
• Returned to being EBITDA+ in however the channel salience is
Dec’20. returning to pre-COVID levels.

• Delivery channel performing well -

Unveiled the 200th store in Amritsar and celebrated the 8-
year anniversary 209 customized activations on key
platforms.
Stores
Strong sequential recovery Other updates
• #Starbucks190, celebration on • Launched the Tata Starbucks
Sales as a % of PY

completing 8 years in India - Empowering Girls and Young Women

90%
82% Special offer on beverages and initiative where every store will support
71% launched a unique subscription a girl’s education.
54%
‘
15 model.

27% Cities  #StaySafeWithStarbucks campaign • Launched the Diwali Blend pan India,
reinforced our commitment to first of its kind initiative of a blend
1% customer and partner (employee) inspired by an Indian festival.
safety.
Apr Jun Aug Sep Nov Dec

31
 UK
Performance commentary

1% • Revenue growth of 1% (constant

currency) with volume growth of
5%.
• Good Earth Tea and Kombucha
continue to see good traction
especially in the ecomm. channel.
Revenue Growth^
• Discounter channel continues to • Tetley continues to grow share in
be the key growth driver. There is the rapidly growing segments of
also growth in Online channel Decaf, F&H and Green tea.
driven by lockdowns.

Teapigs continues to see robust growth in ecommerce channel & export

markets, gaining share during the quarter
32% • OOH and wholesale channels • Improved profitability on account
Teapigs revenue continue to remain under pressure of strong overheads management
Growth# due to repeated lockdowns. and lower trade promotion.

Other updates
• Teapigs has delivered robust • EDB category now showing signs of

20.3% growth as the strong offtake in

ecommerce & exports has more
than offset the decline in OOH.
returning to pre-COVID long term
volume decline.
Value Market share*
• The team navigated Brexit smoothly
(in everyday black)
with advance preparation.

Good Earth gained share during the Tetley Herbals – Digital campaign to
quarter support the launch ^ Constant currency ex Teapigs business # Constant currency growth
Source: Nielsen – Value share, Moving Annual Total (MAT) basis – Dec’20

33
 USA
Performance commentary

6% • Coffee: Revenue growth of 6%

(constant currency), with volume
growth of 7% - strong uptick from
• Tea (excluding Empirical): Robust
revenue growth of 18% against
volume growth of 22%
Coffee Revenue
previous quarter when volume
Alarmingly delicious- be sure to Growth^ declined. • Good Earth Sensorial Blends saw
set your alarm with enough time
strong growth.
to enjoy your new favorite cup of
• Retail coffee category is slowly
joe – CAFÉ ARRIBA returning to its long-term average • Tea category growth continues to
growth rates. be driven by Specialty tea.

4.7% • Ecommerce channel continues to

grow at an accelerated pace.
*Bags Coffee Market
Share
Other updates
• Food service business (Empirical) • Café Arriba launched in select
continues to remain under pressure Hispanic Florida markets.
with second wave of COVID in the
US. • Raising our mugs to those who
serve or have served in the
American military. Offered free bag
of Eight O’Clock coffee on
Veteran’s Day

^ Constant Currency
Source: *Nielsen – Value share, Moving Annual Total (MAT) basis – Dec’20
Café Arriba launched in select Hispanic Florida markets
34
Canada
Performance commentary

24% • Exceptional revenue growth of

24% (constant currency) with
volume growth of 19%, led by
• Specialty tea sales were further
boosted by the new Tetley Super
3.0 range.
Revenue Growth^
promotions and further aided by
COVID led lockdowns.

• Tetley continues to be the #1 • Strong YoY growth in profitability

brand in the market with both led by higher sales and strong
regular and specialty teas control on overheads.
New Tetley Super Sunshine & Immune fortified with Vitamin D & Zinc
growing strongly during the

41% quarter.

Revenue growth in Other updates

Specialty tea^
• On World Children’s day, • Digital campaigns in both English
Tetley Canada announced a and French for Tetley Super tea
new partnership with Unicef UK range.
to help support young children
from 0-5 years old in tea • Extensive sampling, influencer
growing regions of Malawi engagement and social media

29.5%
outreach ongoing for all 4 new
innovations in Tetley Super Tea
range.
*Market share
^ Constant Currency
Source: *Nielsen – Value share, Moving Annual Total (MAT) basis – Dec’20

Influencer partnerships
35
Awards & recognition
1. Silver for the Annual 2. Climate change
Report leader
Integrated Annual report 2019-20 Tata Consumer Products received an
won Silver at the prestigious League A-, being recognised in CDP’s
of American Communications leadership band for second
Professionals awards – Integrated consecutive year, out of a universe of
Reporting category. 9600 global companies that were rated
this year.

3. Sustainable Sourcing 4. Food safety award

Trustea-TCP partnership won 6 packing centers received Food
‘Outstanding Performance’ in the Safety awards from CII, including one
‘Sectoral Value Chain on Tea’ category award for ‘Outstanding Performance
at the CII Food Future Foundation in Food and Safety’ (the highest
(FFF) National Award for Sustainable award in the tea sector).
Sourcing 2020

5. No1 brand tea – Portugal

Tetley Tea in Portugal awarded the No.1 brand in
the ‘Tea Sachet’ category for the 8th consecutive
year by Consumer Choice.

36
Highlights – for the quarter ended Dec’20
Standalone (in ₹ Cr) Consolidated (in ₹ Cr)
REVENUE:

577 3,070 Group Revenue grew by 23% (21% in constant

Revenue from

2,493 currency terms)

500 1,963
operations

1,463 • India Beverages (including RTD) grew by 46%

• India Foods higher by 19%.
+23%
+34% • International Business excluding foodservice,
grew by 11% (+6% in constant currency terms).

Q3FY20 Growth Q3FY21 Q3FY20 Growth Q3FY21

EBITDA:
39 365
326 Group EBITDA growth of 12%
EBITDA

• India beverages profits impacted by

208 197 unprecedented inflation in tea prices which was
+12% partly offset by strong control on discretionary
-5%
+24% +26% costs. India foods business profitability improved
(11) with higher volumes, better realizations and
control over costs.
Q3FY20 Growth Q3FY21 Q3FY20 Growth Q3FY21
• International business (excluding foodservice)
saw significant profit improvement across most
geographies.

38
Financials: Consolidated
Quarter ended Dec’20 Profit and Loss statement Year to date Dec’20

Q3FY21 Q3FY20 Change % (all nos. in ₹ Crores) 9MFY21 9MFY20 Change %

3,070 2,493 23 % Revenue from operations 8,565 7,232 18 %

365 326 12 % EBITDA 1,253 998 26 %
11.9 % 13.1 % % 14.6 % 13.8 %
300 265 13 % EBIT 1,064 820 30 %
9.8 % 10.6% % 12.4 % 11.3 %
298 265 13 % PBT before exceptional items 1,080 837 29 %
(6) (1) Exceptional items 33 (10)
(55) (75) Tax (253) (241)
237 189 25 % PAT 860 585 47 %
7.7% 7.6 % % 10.0 % 8.1 %
237 185 29 % Group Net Profit (incl. JVs & Associates) 856 583 47 %

• During Q3, consolidated revenue from operations grew 23% YoY (21% constant currency) driven by strong growth across India and International business. For 9MFY21, revenue
growth was 18% YoY (16% constant currency).
• Consolidated EBITDA for the quarter is up 12% YoY, primarily driven by strong profit delivery in International & India Foods business which more than offset the adverse impact of
tea inflation in India beverages business. For 9MFY21, consolidated EBITDA grew 26%, led by strong revenue growth and cost control, despite significant inflation in tea costs.
• Group Consolidated Net Profit for the quarter is higher by 29%.

39
Financials: Standalone
Quarter ended Dec’20 Profit and Loss statement Year to date Dec’20

Q3FY21 Q3FY20 Change % (all nos. in ₹ Crores) 9MFY21 9MFY20 Change %

1,963 1,463 34 % Revenue from operations 5,304 4,355 22 %

197 208 (5) % EBITDA 777 646 20 %
10.0 % 14.2% % 14.6 % 14.8 %
165 179 (8) % EBIT 684 564 21 %
8.4 % 12.2% % 12.9 % 13.0 %
183 195 (6) % PBT before exceptional items 768 644 19 %
(6) (1) Exceptional items (47) (10)
(40) (51) Tax (183) (181)
136 143 (5) % PAT 538 453 19 %
6.9 % 9.8 % % 10.1 % 10.4 %

• During Q3, revenue from operations grew 34% YoY driven by growth in volume and value realization in both India beverages and food business. For 9MFY21, revenue growth was
22%.
• EBITDA for the quarter is down 5% YoY, mainly impacted by significant tea inflation and higher investments behind brands which has been partly offset by growth in revenue and
strong cost control. For 9MFY21, EBITDA grew 20%, led by strong revenue growth and cost control, despite significant inflation in tea costs.
• Consequently, Profit after tax for the quarter is down 5% YoY, while it is up 19% during 9MFY21.

40
Segment-wise performance
Revenue - Branded business
Particulars Segment Revenue Segment Results

₹ Cr Q3 FY21 Q3 FY20 Change Q3 FY21 Q3 FY20 Change

45 % India beverages
(%) (%)
22% India foods
India Beverages 1,275 873 46% 79 128 (38)% 33 % International beverages

India Foods 631 531 19% 93 66 41%

International Beverages 926 852 9% 123 79 56%

Total Branded business 2,832 2,256 26% 295 273 8% Segment results – Branded business

Non branded business 246 239 4% 20 16 25%

27% India beverages

Others / Unallocated items (9) (1) (23) (25) 32 % India foods

41 % International beverages
Total 3,070 2,493 23% 292 264 11%

41
Outlook
Macros
 Covid-19 vaccination programme is in progress in most countries and should help with economic growth returning next year.

 Indian economy seems to be on a recovery path with key macro indicators moving up, and in-home consumption categories normalising.

 The second wave of Covid-19 in the US and UK presents some level of uncertainty in the near-term.

Business
 Tea Inflation in India remains a challenge in the near term; need to navigate margin pressure while staying focused on volume & share growth.

 With distribution expansion in progress and acceleration in new product launches, growth momentum in India Foods, Beverages & RTD
business to continue.

 The addition of Soulfull would give us an opportunity to expand our product portfolio & participate across multiple consumption occasions.

 International business is expected to normalise once the vaccination programme is completed.

 We will continue with our transformation journey that will help us deliver on our strategic priorities.

43
Thank You

44
Shareholding information Quarter Ended June’20

Pattern as on Dec 31, 2020 Stock data

BSE Ticker 500800

Others 3%

MFs/ UTI/ AIFs Promoter and NSE Ticker TATACONSUM

10% promoter
Group Market Capitalization (Dec 31, 2020) ₹543.4 bn
35%
Number of Shares Outstanding 921.6 Mn.

Individual
22%

Insurance
Companies/ Foreign
Banks Institutional
3% Investors
27%

45
For more information
Contact us:
Nidhi Verma Rakesh R Sony Abhishek Musahib Satya Muniasamy
Head – Investor Relations & Corporate Global Head of Strategy and M&A [email protected] [email protected]
Communication [email protected]
[email protected]

Write to us at
[email protected]

Call us at
+91-22-61218400

tataconsumer.com TataConsumer tata-consumer-products/ tataconsumerproducts/

46