Tata Consumer Products Ltd, the owner of Tetley tea and Ching's Secret noodles brands, reported a consolidated net profit of Rs 290 crore (attributable to owners) for the Q1FY25, a fall of 8.5 percent from Rs 317 crore in the year-ago period.
Revenue increased 16 percent to Rs 4,352 crore in the three months ended June 30 as compared to Rs 3,741 crore in the year-ago period.
EBITDA for the quarter stands at Rs 671 crore, up 23 percent with a margin expansion of 80 bps to 15.4 percent.
"In India, we continue to strengthen our Sales & Distribution infrastructure and have implemented split routes as announced earlier, this is expected to add about 35% additional feet on the street," Sunil D’Souza, Managing Director & CEO of Tata Consumer Products shared.
He also added that the company, in the health and wellness portfolio, is piloting go-to-market in the pharma as well as the food service channel.
India Beverages grew six percent with revenue for Q1 at Rs 1523 crore, however, tea volumes remain flat compared to Q1FY24. Nourishco (Ready To Drink business) recorded revenue growth of seven percent during the quarter. The company statement states that due to the intense summer and high base, the growth was muted impacting out-of-home consumption. Tata Tea, Organic India, Himalayan, etc comes under this portfolio.
India Foods saw revenue of Rs 1346 crore, a rise of 30 percent, and volume growth of 10 percent. This includes brands like Tata Salt, Tata Sampan, Chings, Smith & Jones, Tata Soulfull and so on.
Salt revenue witnessed a growth of nine percent, driven by strong volume growth. Premiumisation of the Salt portfolio drew strong momentum and grew 35 percent during the quarter.
The company reported that Capital Foods and Organic India account for 29 percent of India's business.
International business recorded 10 percent revenue growth at Rs 988 crore with EBIT growth of 46 percent driven by pricing and cost-saving efforts, the company said in a statement. This includes brands like Tetley, Eight O'Clock, Teapigs, Good Earth.
Coffee continued its strong trajectory with a revenue growth of 28 percent for the quarter
“Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz, Capital Foods, Organic India) recorded 66% growth (20% organic growth)," said D’Souza
Tata Starbucks opened 17 net new stores during the quarter. Total store count stood at 438 at the end of Q1.
"We have completed the end-to-end integration of our recent acquisition -Capital Foods and are on track to complete the integration of Organic India. Identified synergy benefits have started accruing in both businesses.
Going forward, we will continue to execute against our strategic priorities and deliver consistent and profitable growth,” D’Souza said.
Trade was fueled by e-commerce channels that grew 61 percent and modern trade recorded 28 percent growth in Q1FY25.
On July 30, Tata Consumer's shares on BSE closed 0.5 percent lower at Rs 1,195 apiece.
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