Tata Consumer Products unveiled their first quarter results that ended June 30, 2023, showcasing impressive performance with a 22 percent YoY surge in profits, reaching Rs 337.7 crore for the quarter.
The company’s revenue also experienced significant growth, soaring by 12.5 percent from Rs 3,326.8 crore in Q1FY23 to Rs 3,741.2 crore during the current period.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) demonstrated a 19 percent increase, amounting to Rs 547 crore in Q1FY24. This growth was mainly driven by a robust 16 percent surge in the Indian business, a 3 percent (constant currency) rise in the international business, and a 5 percent (constant currency) boost in the non-branded business, the company said.
In the India business segment, Tata Consumer Products witnessed a 2 percent revenue growth and a 3 percent volume growth in the India Packaged Beverages business. The company shared that both its tea brands – Tata Tea Premium and Tata Tea Agni, performed exceptionally well during the quarter.
Meanwhile, Tata Consumer Products’ international business revenue grew by 7 percent, with all three brands—UK- Tetley, Good Earth, and Teapigs—gaining market share value during the quarter.
Tata Starbucks, a 50:50 joint venture between Tata Consumer and Starbucks Corporation, also reported strong revenue growth of 21 percent for the quarter, while the company expanded by opening 16 new stores in four new cities, taking the total number of stores to 348 across 46 cities.
Sunil D’Souza, managing director, and CEO of Tata Consumer Products, expressed delight in the strong topline growth of 12 percent and earnings growth of 23 percent during the quarter.
“During the quarter we saw positive results from the interventions put in place for the branded tea business, which grew volumes for the second consecutive quarter. We continue to maintain volume growth momentum in salt, despite the pricing actions taken earlier to manage inflation. We continued to accelerate innovation across categories with a number of new launches to expand our total addressable market,” he added.
In the first quarter, Tata Sampann’s portfolio recorded a growth of 51 percent year-on-year, albeit on a soft base. Alternate channels continued to fuel our growth agenda. Modern trade channel grew 22 percent and e-commerce grew 28 percent in Q1 of FY24.
Tata Sampann, Tata Soulfull, and NourishCo (the company’s RTD business) , the growth businesses, showcased an impressive 58 percent growth during the quarter and contributed 20 percent to the India branded business.
D’Souza highlighted that the innovation agenda is flourishing, and the sales and distribution expansion is on track to achieve a total reach of 4 million outlets by September ’23, with a focus on expanding direct distribution in smaller towns. Tata Consumer Products continues to experience strong growth in alternative channels such as modern trade and e-commerce.
“Our innovation agenda fired on all cylinders with Innovation-to-Sales reaching 5 percent during the quarter,” he shared.