FMCG major Tata Consumer Products Ltd’s consolidated net profit dipped 21 per cent to ₹278 crore in the December quarter. The company had clocked ₹351 crore during the same quarter a year ago. Sequentially, there was a 17.7 per cent dip from ₹338 crore.
Revenue from operations grew 9.47 per cent to ₹3,803 crore in December (₹3,474 crore), and 1.87 per cent growth sequentially from ₹3,773 crore.
“We delivered strong operating performance with a revenue growth of 9 per cent and EBITDA growth of 26 per cent. Our India tea business continued to benefit from our earlier interventions, yielding positive results resulting in a fourth consecutive quarter of volume-led growth. We continued to see volume-led growth in salt and recorded the highest-ever quarterly volume market share in salt. In both tea and salt, we saw premiumisation at play with the premium portfolio in tea and the value-added salt portfolio recording good growth. Our growth businesses (Tata Sampann, Tata Soulfull, NourishCo and Tata SmartFoodz) continued their strong momentum and have steadily increased their contribution. Tata Starbucks made consistent progress in its expansion agenda expanding its footprint to 55 cities.
“Our Sales and Distribution build-out is progressing well, our total reach has expanded to 3.9 million outlets as of December 2023. We have been focused on driving depth in existing geographies and widening our distribution in lower population strata towns and urban areas and will now focus on rural areas as well. Alternate channels (modern trade and e-commerce) recorded good momentum and continue to be instrumental to our growth agenda,” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.
India business
During the quarter, the company’s India packaged business delivered a revenue growth of 4 per cent, while Coffee delivered a revenue growth of 32 per cent.
The India foods business grew 13 per cent with the value-added salt portfolio recording 23 per cent revenue growth. Tata Sampann’s portfolio recorded a growth of 40 per cent, while NourishCo recorded a 34 per cent revenue growth.
Also read: Nestle India December quarter net up 4.4% on strong sales
The Mumbai-headquartered company that announced the acquisition of Capital Foods and Organic India during the quarter stated that the integration is expected to be completed within 100 days.
“We recently announced two acquisitions — Capital Foods and Organic India, which will enable us to expand our total addressable market into high-growth, high-margin spaces. Both these businesses are gross-margin accretive, and we see potential to drive significant revenue and cost synergies over the medium term. We closed the Capital Foods transaction on February 1 and in line with our focus on execution, the first primary as well as secondary billing was done on February 2,” added D’Souza.
International business & Tata Starbucks
The company’s international business revenue grew 11 per cent with 6 per cent in constant currency. Tata Starbucks added 22 new stores during the quarter and entered six new cities. There are 392 Tata Starbucks stores across 55 cities.