Weak tea biz a drag on domestic sales performance of Tata Consumer Products

International margins fall sharply on cost inflation, price lag in December quarter

Weighed down by margin pressures in the international business, Tata Consumer Products delivered a weaker-than-expected performance in the December quarter of the 2022-23 financial year (Q3FY23).  Even on the sales front, the India beverages segment, the largest vertical in its portfolio, delivered a fall in revenues as compared to the year ago quarter.  

Revenues of the India packaged beverages (tea, coffee) business was down 9 per cent year-on-year (YoY). The tea business reported a volume decline of 5 per cent as compared to the three year compounded annual growth rate of 3.1 per cent.

The weak performance, according to the company, was