Tata Consumer Products Q1 Results: Net profit rises 22% to ₹337.7 crore; revenue up by 12.5%

Tata Consumer Products released their April to June quarter results on Wednesday and reported 22% (YoY) jump in their profits which reached ₹337.7 crore during the quarter. The revenue of the company jumped 12.5% from ₹3,326.8 crore in Q1FY23 to ₹3,741.2 crore during the period under review.

The Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 19% during Q1FY24 to ₹547 crore. The company said that the growth was mainly driven by strong growth of 16% in Indian business, 3% (constant currency) in international business, and 5% (constant currency) in non-branded business.

In the India business, Tata Consumers Products delivered 2% revenue growth and 3% volume growth in the India Packaged Beverages business. The company said that both tea brands- Tata Tea Premium and Tata Tea Agni recorded strong growth during the quarter.

Tata Consumer Products' international business revenue grew 7% with all three brands- UK- Tetley, Good Earth, and Teapigs gaining value in market share during the quarter. Tata Starbucks recorded strong revenue growth of 21% for the quarter. Tata Consumer Products opened 16 new stores during the quarter and entered 4 new cities. This brought the total number of stores to 348 across 46 cities.

Strong topline growth

“We delivered strong topline growth of 12% along with earnings growth of 23% this quarter. Additionally, we were able to expand the EBITDA margin despite continuing investments in new businesses. 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," Sunil D’Souza, Managing Director and CEO of Tata Consumer Products said.

“Our growth businesses (Tata Sampann, Tata Soulfull and NourishCo ) continued their strong growth trajectory, they grew by 58% this quarter and accounted for 20% of the India branded business. Tata Starbucks continued to deliver a strong performance along with store expansion,” Sunil added.

“Our innovation agenda fired on all cylinders with Innovation-to-Sales reaching 5% during the quarter. In our Sales & Distribution expansion, we are on track to achieving a total reach of 4 million outlets by September ’23 and we will continue to expand direct distribution in smaller towns,” the MD and CEO said.

"We continue to record strong growth momentum in alternative channels- modern trade and e-commerce. Going forward, we will stay focused on driving profitable growth while making consistent progress in our transformation journey towards becoming a leading FMCG company,” the top officer concluded.