Tata Consumer net profit up 29% amid higher volumes
FMCG company Tata Consumer Products Ltd (TCPL) on Friday reported a group consolidated net profit. ₹427 crore for the June quarter (Q27), up 29% year-on-year driven by higher volumes.
From tea to salt, the giant reported consolidated income ₹5,349 crore in the quarter, up 12% from the same period in the previous year, the company said in a stock exchange filing.
Consolidated EBITDA increased by 19% in the quarter ₹730 crore, while margins increased by 70 basis points to 13.6%.
The company’s India business delivered underlying volume growth of 13%. “We achieved another quarter of double-digit top-line growth supported by volume growth. More importantly, this translated into consolidated net profit growth of 29%,” Tata Consumer Products Managing Director and CEO Sunil D’Souza said in a statement.
“The India-branded business delivered strong underlying volume growth reflecting continued focus on execution, category expansion and innovation,” he added.
‘Growing businesses’ grew 47% in the first quarter and accounted for 36% of jobs in India. Tata Consumer’s growing businesses include emerging, high-potential segments such as Tata Sampann (staples and dry fruits), Tata Soulfull (millet and healthy snacks) and ready-to-drink beverages such as Tata Gluco+ and Tata Copper+.
Tata Sampann continued to report strong momentum with revenue growth of 58% in the quarter. Sampann’s growth was broad-based across categories, led by strong performance in dried fruits, cold-pressed oils, pulses and spices.
Salt revenue increased 7% during the quarter, supported by steady volume growth. Calibrated price increases were made in salt to offset input cost inflation. Value-added salts delivered volume growth of 13% in the quarter.
In the quarter, India tea volumes rose 2%, while revenue fell as the company passed on the benefit of lower tea costs to consumers. Tea segment revenue decreased by 4%.
Coffee continued its strong run with revenue growth of 24% in the quarter.
Ready-to-drink segment revenue increased 41%, driven by 35% volume growth.
Its brands Capital Foods and Organic India achieved growth of 40% and 27% respectively. The company launched 14 new products this quarter.
Global performance
UK business fell 2% on a constant currency basis, driven by the busy summer season, which led to a slowdown in the casual black tea category.
International business grew 16% (3% in constant currency); The US business delivered 7% constant currency growth in the quarter.
Tata Starbucks’ revenue grew 11% year-on-year on healthy same-store sales growth in the quarter.
