Tata Consumer Products Ltd, the owner of Tetley tea and Ching's Secret noodles brands, reported a net profit (attributable to owners) of Rs 217 crore for the fiscal fourth quarter, a fall of 19 percent from Rs 269 crore in the year-ago period.
Revenue increased 8.5 percent to Rs 3,927 crore in the three months ended March 31, Tata Consumer said in an exchange filing on April 23.
Revenue was largely in line but profit missed estimates. An average of six brokerage polled by Moneycontrol had pegged a revenue growth of 4.8 percent on-year at Rs 3,989 crore. The bottom line was expected to grow 13.4 percent to Rs 329 crore.
The EBITDA margin was at 16 percent, up 190 basis points. EBITDA is short for earnings before interest, taxes, depreciation, and amortisation. One basis point is one-hundredth of a percentage point.
"In India, we solidified our Sales & Distribution infrastructure; our total reach has expanded to 4 million outlets as of March ’24. We implemented split routes in all 1 million + population towns and have seen significant improvement in assortment and growth. We are strengthening our Rurban focus and are deepening reach into rural areas. Alternate channels (modern trade and e-commerce) recorded significant momentum and continue to be strong growth drivers." said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.
The India Packaged Beverages business delivered 2 percent revenue
growth. The company continued to retain market leadership in tea in the E-commerce channel. Coffee continued its strong performance with a revenue growth of 45 percent for the quarter.Nourishco (RTD business) recorded revenue growth of 13 percent during the quarter, bringing FY24 growth to 33 percent.
The company's sales & distribution infrastructure was further strengthened, expanding total reach to 4 million outlets as of March 2024. The reach was further deepened through the addition of 1300+ distributors in FY24, primarily in Rurban markets.
Alternate channels continued to fuel our growth and innovation agenda Ecommerce channel grew 35 percent and Modern Trade recorded 9 percent growth in FY24. E- commerce accounted for 11 percent of India business in FY24, up from 9 percent last year.
For the quarter, the International business revenue grew 7 percent (+5 percent constant currency).
Tata Starbucks added 29 net new stores during the quarter and entered 6 new cities. This year saw the highest store addition at 95 stores. This brought the total number of stores to 421 across 61 cities.
On BSE, Tata Consumer Products Limited closed trading on April 23 at Rs 1173.25 on BSE, up 0.07 percent from the previous day’s close.
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