Tata Consumer Products said it has not lost market share in the tea business even though an indicator suggested it had shrunk by both volume and value. A top company official said a clear picture will emerge once figures from competitors come in.
Tata Consumer's moving annual total (MAT) market share for tea fell by 30 basis points in volume and 50 basis points in value over the past year, according to an investor presentation on the company's website, which cited Nielsen data. MAT is the total value of a variable such as a product's sales figures over the course of 12 months.
"We strongly feel that we have not lost market share and we would wait for competitive numbers to see when this pans out," Sunil D’Souza, managing director and chief executive officer of Tata Consumer, said on a call with analysts after reporting its Q4 earnings.
D'Souza said the 2-3 percent volume growth in the India tea business in the January-March quarter was a bit soft compared with the performance in the previous quarters. However, he said Tata Consumer expects its India tea business to report a 2-4 percent volume growth in the short term and mid-single digit volume growth in the long term.
In the overseas market in Q4, the US Regular Black Tea market declined by 2.7 percent in value, while the UK market registered a healthy 15 percent growth. The Canadian market also expanded, with Canada Regular Black Tea up by 3.4 percent and Canada Speciality Tea by 5.3 percent.
Also read Tata Consumer's India foods business continues double digit growth
The company's India beverages, which includes tea, reported flat volume growth and 3 percent revenue growth year-on-year during Q4. For FY24, India beverage volumes climbed 2 percent and revenue rose 7 percent.
Tata Consumer reported a net profit of Rs 217 crore for the fourth quarter on April 23, down 19 percent from a year earlier. Revenue increased by 8.5 percent to Rs 3,927 crore.
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