KOLKATA, India – Tata Consumer Products Ltd. today announced its results for the quarter ended 30th June 2024. For the quarter, Revenue from operations grew by 16% (16% in constant currency) to Rs 4,352 Crores (US$519.9 million) as compared to the corresponding quarter of the previous year.
Organic growth, excluding acquisitions (Capital Foods and Organic India) was 10%, Profit before exceptional items and tax at Rs 465 Crores (US$55.5 million) is lower by 6% as an improvement in operating performance was more than offset by finance cost and amortisation charges.
Group Consolidated Net Profit at Rs 289 Crores (US$34.5 million) is lower on account of higher exceptional items and lower share of profits from Associates and Joint Ventures. Coffee continued its strong trajectory with a revenue growth of 28% for the quarter.
International
For the quarter, the International business revenue grew 10% excluding Capital Foods and Organic India acquisitions (+8% constant currency).
International business profitability improved significantly led by structural interventions and pricing actions.
Tata Starbucks
In line with the store addition plans, the company added 17 net new stores during the quarter and entered 4 new cities. This brings the total number of stores to 438 across 65 cities.
Cold Brew and Refreshers with green coffee extract were launched as key offerings during the quarter.
The Starbucks summer campaign saw experiential activities conducted at stores along with new product launches.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said:
“We delivered good topline growth of 16% in Q1 FY25 (+10% organic growth), with an EBITDA growth of 23%. During the quarter, we recorded strong growth in the India salt business, our India tea business was impacted by an intense summer. Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz, Capital Foods, Organic India) recorded 66% growth (20% organic growth).
Tata Starbucks sustained momentum in its expansion agenda with its store count now at 438 stores spanning a total of 65 cities. We also delivered strong performance in our International markets, along with significant margin expansion, led by structural interventions and pricing actions. In India, we continue to strengthen our Sales & Distribution infrastructure and have implemented split routes as announced earlier, this is expected to add about 35% additional feet on street.
Channels of the future (modern trade and e-commerce) continue to be strong contributors to our growth algorithm. In addition, we are piloting our go-to-market in the pharma channel (for our health & wellness portfolio) and in the food service channel. We have completed the end-to-end integration of our recent acquisition -Capital Foods and are on track to complete the integration of Organic India. Identified synergy benefits have started accruing in both businesses. Going forward, we will continue to execute against our strategic priorities and deliver consistent and profitable growth.”
