Tata Consumer Products Ltd on Tuesday reported an 8 per cent decline in consolidated net profit to ₹290 crore in the quarter ended June 30, 2024.
The company posted a net profit of ₹316 crore during the same quarter a year ago. The profit increased by 34 per cent compared to the March quarter with ₹216 crore.
The group’s consolidated profit was lower due to higher exceptional items and a reduced share of profits from associates and joint ventures, the company said in an exchange filing.
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Consolidated revenue from operations during the quarter saw a 16 per cent increase to ₹4,352 crore compared to ₹3,741 crore reported during the same quarter last year. Revenue increased by 11 per cent compared to the March quarter, where it was ₹3,926 crore.
The company said its India packaged beverages business delivered 6 per cent revenue growth while the foods business grew 30 per cent, continuing its double-digit growth trajectory. Coffee recorded a revenue growth of 28 per cent for the quarter.
The international business revenue grew 10 per cent excluding Capital Foods and Organic India acquisitions (+8 per cent constant currency). The company stated that the international business profitability improved due to pricing actions and structural interventions.
Tata Starbucks added 17 new stores during the quarter and entered 4 new cities. The total number of Tata Starbucks stores is 438 across 65 cities.
“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 per cent growth (20 per cent organic growth). We also delivered a 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 per cent additional feet on the 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 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,” said “Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.