Tata Consumer Products Q1: Net profit surges 23.9% to Rs 316.59 crore

Tata Consumer Products Q1: Tata Consumer Products reported on Wednesday (July 26) a 23.9 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 316.59 crore for the quarter ended June 2023 (Q1FY24). The company had posted a profit of Rs 255.46 crore in the year-ago period. Revenue from operations came in at Rs 3,741.21 crore, up 12.45 per cent against Rs 3,326.83 crore in the year-ago period.

Basic earnings per share (EPS) for the quarter were Rs 3.41, compared to Rs 2.77 in the year-ago period.

In its earnings release, the company said its consolidated EBITDA stood at Rs 547 crore, up 19 per cent YoY. The group's net profit grew by 22 per cent to Rs 338 crore.

Tata Consumer Q1 Results: Key Highlights 

India

• For the quarter, the India Packaged Beverages business delivered 2% revenue growth and 3% volume growth.
• Both our largest tea brands Tata Tea Premium and Tata Tea Agni recorded strong volume growth during the quarter.
• We continued to retain market leadership in tea in the E-commerce channel.
• Coffee continued its strong performance with a revenue growth of 21% YoY.
• For the quarter, the India Foods business delivered 24% revenue growth and 6% volume growth.
• The salt portfolio continued its strong momentum and recorded double-digit revenue growth during the quarter on a high base of last year. 
• Tata Salt Immuno (salt fortified with zinc) and Shuddh by Tata Salt continued to see strong traction with consumers.
• Tata Sampann's portfolio recorded a growth of 51% YoY, albeit on a soft base.

International

• For the quarter, the International business revenue grew 7%.
• In the UK, Tetley tea underwent a significant transformation with a superior blend, plant-based tea bags, a 100% green energy factory, and recyclable packaging. This is a step change in future-proofing the business and driving the sustainability agenda.
• All three of our brands in the UK- Tetley, Good Earth, and Teapigs gained value market share during the quarter.
• In the USA, Tetley and tea pigs continued to outpace regular category growth.
• In Canada, Tetley continued to outpace the regular tea category.

Tata Starbucks

• Tata Starbucks recorded strong revenue growth of 21% for the quarter.
• Opened 16 new stores during the quarter and entered 4 new cities. This brought the total number of stores to 348 across 46 cities.
• Following the success of our pilot to enhance the relevance of Tata Starbucks to more consumer segments, the program was rolled out in select stores nationally and supported by a national campaign. As part of this program, new beverage options like milkshakes, masala tea, etc, and an enhanced food menu have been introduced along with a new 6oz.” Picco” size in hot beverages at a lower price point.

Source: Earnings release