MILAN – Tata Consumer Products (TCPL) has announced a 36% year-on-year jump in consolidated net profit to Rs 389 crore (US$46.99 million) for the second quarter that ended September. The sharp increase in net profit was made possible by improved sales and a one-time gain made from the sale of a land parcel.
The company’s revenue from operation was 11% up on year to Rs 3,363 crore (US$406.25 million) as India’s business revenues grew 9% to Rs 2,160 crore (US$260.928 million) and international business grew 7% on year.
India
- For the quarter, the India Packaged Beverages business recorded 7% revenue decline due to pricing corrections and overall softness in the category. We continued to record volume market share gains in branded tea.
Coffee continued its strong performance with a revenue growth of 39% during the quarter. - Tata Tea Premium celebrated 75 years of India’s Independence with a special collection of tin cans, teacups, and plates commemorating great moments of pride from India’s post independence history.For the quarter, the India Foods business registered 29% revenue growth despite an elevated base that saw 23% growth in the same period last year.
International
- For the quarter, the International Beverages business revenue grew 7%
- In the UK, TCPL became the third largest branded tea company by market share, displacing Twinnings.
- Teapigs in UK launched an iced tea range supported with ‘Summer of teapigs’ campaign across print and digital platforms.
- Eight O’ Clock (EOC) coffee in the USA recorded share gains, with EOC K cups growing ahead of the category.
Tata Starbucks
- Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by normalized store operations and a revival in out of home consumption.
- Started its 10th anniversary celebration with ‘Brew your own Starbucks’ campaign giving customers a chance to create beverages to be featured on the menu.
- Opened 25 new stores during Q2, the highest ever number of quarterly store openings in its history and entered 5 new cities. This brought the total number of stores to 300 across 36 cities.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said:
“We delivered another quarter of double digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets.
While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position. We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out of home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter.
While unprecedented inflation & adverse currency movements in our International business have weighed on our margin this quarter, we will be driving structural cost-saving initiatives to improve the trajectory going forward. Our transformation agenda to become a leading FMCG company continues to be on track. We are making consistent progress in expanding our reach across channels, strengthening our innovation capabilities, and embedding digital transformation across the organization. We will continue to stay focused on growth while fuelling our new businesses.”
