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Conference Call Overview • Date: August 2, 2024 • Focus: Financial results for Q1 FY25 (quarter ending June 30, 2024) • Key Participants: • CEO: Sunil D'Souza • Group CFO: Ashish Goenka • Moderator: Manoj Menon (ICICI Securities) • Nidhi Verma (Head of Investor Relations)
Financial Performance Highlights • Consolidated Revenue Growth: • 16% overall growth • 10% organic growth • 6% from acquisitions • Segment Performance: • India Beverages: 6% growth • India Foods: 30% growth (14% organic) • International Business: 10% growth, 46% EBIT increase • Profitability: • EBITDA: 23% increase, margin at 15.4% • Non-branded business: 34% revenue growth
Strategic Developments • Store Openings: • 70 new Starbucks stores, total of 438 • Integration Progress: • Capital Foods and Organic India integration on track • Challenges: • Ready-to-drink segment affected by summer heat
Market Insights • Branded Business: • 600 basis points expansion • UK: 14% revenue increase; US: coffee down 4%, tea up 8%; Canada: 12% growth • Commodity Trends: • Mixed trends, with rising tea prices due to drought
E-commerce and Innovations • Sampann Brand Growth: • 37% growth driven by core products and new innovations • Quick Commerce: • Accounts for 35% of e-commerce, growing at 60%
Acquisitions and Financial Metrics • Acquisition Impact: • Significant depreciation and amortization affecting profitability • PAT down 12%, group net profit down 14% • Future Outlook: • Revised revenue forecast for Capital Foods and Organic India: Rs. 1,007 crores for FY24
Additional Insights • Market Share Trends: • Stability in salt, balanced tea prices • NourishCo: • Strong product offerings despite tactical missteps • Vending Business: • Successful pilot with plans for expansion
Conclusion • Confidence in Growth: • Sunil D’Souza expressed optimism about achieving business targets and improving operational leverage as acquisitions stabilize.
Earnings Call Overview • Date: April 24, 2024 • Compliance: Transcript submitted per SEBI regulations • Key Executives: • Sunil D'Souza (MD & CEO) • Ashish Goenka (Group CFO) • Ajit Krishnakumar (Executive Director & COO) • Format: Presentation of performance highlights followed by Q&A • Transcript available on investor relations website
Financial Performance Highlights • Overall Revenue Growth: • 9% increase in overall revenue • 10% rise in consolidated revenue for the year • Segment Performance: • India Beverages: Flat volumes, 3% revenue growth • India Foods: 20% revenue increase • International Business: 7% revenue growth • EBITDA Growth: • Consolidated EBITDA growth of 24% • Improved margins despite slight market share loss in India • Market Share: • Salt market share reached 40% • Integration: • Successful integration of Capital Foods and acquisition of Organic India • Distributor Expansion: • Added 1,300 distributors in rural markets • Innovation: • Innovation-to-sales ratio increased to 5.1% • CAGR: • India-branded business CAGR of 16% over four years
NourishCo Performance • Quarterly Revenue: 13% growth, totaling INR 204 crores • Annual Target: Achieved INR 825 crores, below target of INR 900-1,000 crores • Outlet Expansion: 50% increase in outlets • Challenges: Transition from Tata Coffee to Tata Consumers caused temporary sales pause • Tata Starbucks: Plans to open 1,000 stores by FY '28
Standalone and Consolidated Revenue • Standalone Revenue: • 13% growth for the quarter • 11% growth for the full year • Consolidated Revenue: • 9% increase for the quarter • 10% increase for the full year • EBITDA Growth: • 15% for standalone, 25% for consolidated
Integration and Growth Expectations • Capital Foods and Organic India: • Growth expectations based on higher revenue base • Confidence in achieving double-digit growth • NourishCo Brands: Strong performance despite second-half slowdown
International Business and Margin Outlook • International EBIT Margins: Expected to positively impact overall India portfolio • Tea Business: Anticipated long-term volume growth of 5% • Coffee Business: • 29% increase for the year, 45% for the quarter • Margins may experience volatility due to input prices
Strategic Focus and Future Plans • Tata Sampann Growth Strategy: • Aim to become a comprehensive pantry brand • Expansion in pulses and spices categories • Future Revenue Contribution: • Integration of Capital Foods and Organic India expected to represent 30% of consolidated revenue
Conclusion • The call concluded with updates on acquisitions, integration timelines, and a focus on food and beverage sectors, with plans to explore broader FMCG opportunities.
Tata Consumer Products Limited Q3 FY '24 Earnings Call Summary
Call Overview • Date: February 14, 2024 • Hosted by: ICICI Securities • Key Executives: Managing Director and CFO • Purpose: Discuss financial results for Q3 ending December 31, 2023 • Access: Transcript available on investor relations website
Financial Performance Highlights • Consolidated Revenue Growth: 9% (8% in constant currency) • CAGR: 11% over four years • Segment Growth: • Tea: 2% volume growth • India Beverages: 8% growth • NourishCo: 34% growth • India Foods: 5% volume increase, 13% revenue rise • Tata Sampann: 40% year-on-year growth • International Business: 11% revenue growth • EBITDA: Increased by 26% • Profitability: Improved across growth businesses (17% of total revenue)
Strategic Developments • Market Share: Tata Salt achieved highest market share in December 2023 • Innovation: 5.3% revenue contribution from new products • Mergers: Effective merger with Tata Coffee; acquisition of Capital Foods in progress • Cash Balance: INR 2,945 crores, up 40% year-on-year • Distribution Focus: Expanding in smaller towns and enhancing e-commerce presence
Segment-Specific Insights • India Packaged Beverages: 2% volume growth, 4% revenue growth • Premium vs. Economy: Premium segments outperforming economy segments • International Markets: • U.K.: 14% revenue growth • U.S.: 9% decline • Canada: Strong market share in black tea
Future Outlook • Volume Growth: Cautious optimism in India; stabilization in U.S. coffee market • Integration Plans: Capital Foods and Organic India expected to enhance revenue and EBITDA • M&A Strategy: Open to future acquisitions after integrating recent ones • Margin Goals: Targeting 15% EBITDA margin as baseline, with potential for higher margins
Additional Insights • Coffee Business: Fluctuating prices; 32% growth in Indian coffee market • New Business Growth: Driven by geographic expansion and product diversification • NourishCo Distribution: Aiming for 8.5 to 9 lakh outlets by year-end • Inventory Management: No major issues post-Ching's acquisition • E-commerce Strategy: Higher e-commerce shares for brands like Sampann and Soulfull
Conclusion • The company remains focused on growth, navigating integration challenges while maintaining a strategic approach to product launches and market expansion.
Earnings Highlights • Date of Call: November 1, 2023 • Revenue Growth: 11% increase in revenue • EBITDA Growth: 30% increase • Net Profit Growth: 24% increase (excluding exceptional items) • Key Contributors: India Beverages and NourishCo
Management Changes • Retirement Announcement: Executive Director L. Krishnakumar to retire and assist in transition.
Strategic Focus • Distribution Expansion: Aiming to improve market share in tea and salt products. • Innovation: Launch of new energy products, sports drinks, and value-added teas. • Sustainability Commitment: Specific targets set for FY25-26.
Business Performance • India Packaged Beverages: Stable volume growth of 3%. • India Foods: 16% revenue increase. • Tata Coffee: 11% growth in extractions. • Starbucks: 14% growth with 22 new store openings. • International Markets: Strong growth in the UK; challenges in the US.
Q&A Highlights • New Energy Drink: "Say Never" priced at Rs. 10; potential for broader expansion. • NourishCo Growth Rates: Decline attributed to festival date shifts; e-commerce performing well. • Tata Sampann's New Product: Gulab Jamun mix launch as a test for Diwali season. • Salt Business: Strong market position allows for effective price increases. • High-Growth Businesses: Focus on long-term growth over short-term profits; improving EBITDA margins. • Distribution Strategy: Essential for growth; ongoing efforts to enhance reach. • International Margins: Affected by seasonality; year-on-year comparisons encouraged. • Sampann Brand Growth: Driven by both pricing and volume growth from expanded distribution.
Future Outlook • Growth Aspirations: Targeting significant growth in mass and mass premium categories. • Product Strategy: Focus on high-margin products and market differentiation. • NourishCo Expansion: Emphasis on profitability and market presence.
Conclusion • The call concluded with an invitation for further questions, highlighting the company's commitment to growth and innovation.
Conference Call Overview • Date: August 1, 2023 • Key Executives: • Sunil D'Souza (Managing Director & CEO) • L. Krishnakumar (Executive Director & Group CFO) • Ajit Krishnakumar (COO) • Format: 15-minute presentation followed by Q&A • Transcript available on investor relations website
Financial Performance Highlights • Revenue Growth: • 12% overall revenue growth • 11% increase in constant currency • India Business: • EBITDA up by 19% • Notable growth: • NourishCo: 60% revenue growth • Tata Sampann: 51% revenue growth • International Business: • 7% revenue growth, challenges in South Africa and Bangladesh • Tata Starbucks: • Opened 16 new stores, contributing to 21% revenue increase • Marketing Investment: • Increased to 7.1% of sales • Overall EBITDA Margins: • Improved by 80 basis points • Net Profit Growth: • 22% increase
Segment Performance • Stand-Alone Performance: • 12% revenue increase, 16% EBITDA growth • Strong growth in tea (2%), salt (18%), and Sampann (over 50%) • International Business: • 3% growth, significant growth in NourishCo and Soulfull • Profit After Tax (PAT): • Increased by 30%
Growth Strategy and Market Insights • Focus on Core and Expansion Businesses: • Emphasis on Soulfull and NourishCo • Growth businesses represent 20% of India portfolio • Pricing Strategy: • No anticipated price cuts in salt or tea • NourishCo Expansion: • Aiming for significant growth through geographic and product portfolio expansion • Market Share Concerns: • Addressed competition in tea segment and regional penetration strategies
Innovation and Product Development • New Product Strategy: • New products account for 5% of sales • NourishCo Water Innovation: • Plans to premiumize offerings and pilot affordable mineral water • Health and Nutrition Focus: • Tata Soulfull's strategy to leverage strength in breakfast cereals
Future Outlook • Profitability of Growth Businesses: • Expected to improve contribution margins as they scale • Integration of Tata Coffee: • Anticipated cost savings and enhanced customer service • Distribution Network Expansion: • Focus on both depth and width to enhance market reach
Conclusion • The call concluded with thanks from Nidhi Verma, inviting further questions from participants.
Conference Call Overview • Date: May 2, 2023 • Key Executives: • Sunil D'Souza (MD and CEO) • L Krishnakumar (Executive Director and Group CFO) • Ajit Krishnakumar (COO) • Transcript available on investor relations website • Signed by Neelabja Chakrabarty (Company Secretary)
Financial Performance Highlights • Q4 FY'23 Results: • 14% revenue growth • EBITDA margin: 14.3% • India beverages: 3% volume increase • Foods segment: robust growth despite price hikes • International business: 11% revenue growth
• Full Year Results: • Overall revenue: 11% increase • India business: 10% growth • Innovations and distribution expansion contributed to growth
Market and Segment Performance • Market Share: • 8% increase in market share • 26% rise in revenue • Value-added portfolio: 5% of mix
• Segment Growth: • Tata Sampann: 35% growth (quarter), 29% (year) • Soulfull: doubled growth • NourishCo: 80% revenue growth • Tata Coffee: 11% growth in plantations, 20% in extraction
Strategic Insights • Focus on enhancing market share in tea and expanding value-added products • Plans for aggressive growth in Starbucks segment • Addressing challenges in US coffee market
Operational Updates • Shift to integrated margin analysis post-advertising and promotion • Stable gross margin: 32% to 37% • Ongoing updates on financial numbers from Nidhi and team
Future Outlook • Cautious optimism about returning volume growth • Plans for further distribution and manufacturing growth in NourishCo • Targeting 30% growth for Sampann while balancing profitability
Challenges and Responses • Inflation and geopolitical volatility acknowledged • Competitive landscape for Sampann discussed • Starbucks business: EBITDA and EBIT positive, but net profit negative due to expansion costs
Conclusion • Emphasis on data-driven strategies and inventory management • Ongoing efforts to close distribution gaps in the tea segment • Positive performance expected for NourishCo as it scales up operations
Conference Call Details • Date: February 3, 2023 • Executives Present: • Sunil D'Souza (Managing Director and CEO) • L. Krishnakumar (Executive Director and CFO) • Ajit Krishnakumar (COO) • Hosted by: ICICI Securities Limited • Focus: Financial results for the quarter and nine months ending December 31, 2022
Financial Performance • Revenue Growth: • 8% growth for the quarter • 10% year-to-date increase • 12% CAGR over three years • EBITDA: • 2% decline year-on-year • 5% growth year-to-date • Segment Performance: • India business: 8% revenue increase • Beverage segment: 5% decline due to volume issues • India Foods: 29% revenue growth • International revenue: 4% growth for the quarter, 7% year-to-date • Net Profit: • 33% increase in group net profit • Cash reserves grew by 10%
Key Developments • Partnership with Wastelink for recycling initiatives • Recognition for Damdim packaging center (Energy Conservation Award 2022) • Strong performance in health-focused segments
Challenges and Recovery • Beverages Segment: • 9% revenue decline in India due to volume drop • Recovery signs noted in December and January • Food Segment: • 33% price increase in salt, but 4% volume growth • NourishCo: 66% revenue increase • Tata Coffee: 25% revenue growth
International Market Insights • Starbucks expanded to 311 stores, remains EBIT positive • UK and US markets: modest revenue growth; Canada: 5% increase
Strategic Focus • Enhancing distribution in rural areas • Addressing market share gaps against competitors • Emphasis on long-term growth and margin improvement
Distribution Strategies • Synergies across food and beverage categories • Expansion of distribution reach to 3.6 million outlets • Focus on increasing assortment and throughput per outlet
Future Growth Opportunities • Significant growth potential in Sampann category • Plans for business rationalization and structural cost interventions • Confidence in returning international business to profitability
Margin and Profitability Insights • Sampann portfolio: lower margins but improving quarter-on-quarter • High return on capital employed due to outsourced manufacturing model • Market share losses in beverages attributed to competition from unorganized players
Conclusion • Strategic focus on improving margins, executing growth strategies, and enhancing operational efficiency.