Overall good domestic demand propelled Tata Consumer Products’ consolidated revenue in the March quarter to 14 per cent higher while the net profit rose by about 24 per cent.
The company posted a ₹268.6 crore net profit on revenue of ₹3,618.7 crore. The EBITDA at ₹511.7 crore was up 15 per cent, and its margin shifted slightly to 14.14 per cent from 13.99 per cent a year ago.
In FY23, the company’s net profit rose 28.6 per cent to ₹1,203.8 crore, while revenue rose 11 per cent to ₹13,783 crore.
“We delivered strong topline growth of 11 per cent while balancing margins in an extremely volatile macro environment this fiscal,” MD & CEO Sunil D’Souza said.
He said there were early signs of revival in its branded tea business while innovations and new product launches show positive results. The company was on track to reach 4 million outlets by the end of this year, he added.
“Our transformation journey to becoming a leading FMCG company is on track, and we will continue to stay focused on driving profitable growth, along with building future-ready capabilities,” he added.
India Business
Tata Consumer’s India business saw an underlying growth of 15 per cent, mainly led by coffee, premium tea portfolio and the foods business, which saw a 26 per cent revenue growth with 8 per cent volume growth. Tata Salt continued its growth momentum with double-digit revenue growth in the quarter and full year (FY23) with market share gains.
“We have strengthened our salt business through a multi-brand play. From mostly vacuum-evaporated salt, we now offer consumers a complete assortment across various types, benefits, and price points,” the company said.
Its staples brand Tata Sampann, too, recorded a double-digit revenue growth, while NourishCo, which provides hydration products, saw its revenue rise 80 per cent in the year to $621 crore on a broad-based performance.
There was a sequential recovery in the packaged beverages business in the quarter and volumes rose 3 per cent and revenue moved 1 per cent higher.
During the year, modern trade channels contributed about 14 per cent to India sales and e-commerce channels’ contribution was 9 per cent.
International Business and Starbucks
The international business saw 6 per cent growth in the quarter, with price increases to offset cost inflation.
Tata Starbucks recorded strong revenue growth of 48 per cent for the quarter, bringing FY23 growth to 71 per cent, albeit on a base that was impacted by the pandemic.
The coffee chain opened 71 new stores during the year and entered 15 new cities, the highest-ever annual store addition. This brought the number of stores to 333 across 41 cities.