The FMCG company reported a substantial growth in consolidated net profit of Rs 231.57 crore in Q4 FY22 as compared to a net profit of Rs 96.97 crore in Q4 FY21, mainly aided by growth in underlying profitability and lower exceptional costs.
Net sales in the fourth quarter stood at Rs 3,175.41 crore, rising 4.5% from Rs 3,037.22 crore reported in the same period last year, mainly driven by growth in the India branded business.
Profit before tax surged 94.3% to Rs 384.55 crore in Q4 March 2022 over Rs 197.91 crore in Q4 March 2021. The EBITDA improved by 45% to Rs 458 crore in Q4 FY22 from Rs 317 crore in Q4 FY21. EBITDA margin stood at 14.4% in Q4 FY22 as against 10.4% in Q4 FY21.
On a segmental front, revenue from India business stood at Rs 1,953.66 crore, rising 6.07% YoY while revenues from International business was at Rs 890.19 crore, growing 1.16% YoY, during the period under review.
On full year baisis, the company reported a 10.7% increase in net profit to Rs 974.36 crore on a 7.1% rise in net sales to Rs 12,425.37 crore in FY22 over FY21.
For the year, the India Packaged Beverages business recorded 6% growth in revenues, on an elevated base that saw 32% revenue growth last year. The India Foods business registered 19% revenue growth, on an elevated base that saw 18% revenue growth last year. The coffee revenues grew 46% during the year, led by several new launches and distribution expansion. These new launches included Tata Coffee Gold, Tata Coffee Quick Filter and new Sonnets range.
For the year, the International Beverages business revenue grew 1%, like for like, net of exits, cycling an elevated base that saw 12% growth last year.
Tata Starbucks recorded revenue growth of 76% for the year, despite two waves of the pandemic. For the quarter, revenue grew 32% partially impacted by the third wave of COVID-19. However, the company said that the growth was on the back of a strong trajectory led by swift re-opening post the third wave. The delivery channel remained salient ahead of pre COVID-19 levels in FY22. The coffee-chain opened 23 new stores during Q4 and entered four new cities- Goa, Bhubaneshwar, Nashik and Guwahati, bringing the total number of store additions to 50 during FY22.
Sunil D'Souza, the managing director & chief executive officer (CEO) of Tata Consumer Products, said, Despite all the macro & operating challenges during the year, we delivered reasonable revenue growth along with improved profitability for the company. In the core businesses, we delivered competitive growth with market share gains in both tea and salt. Our out-of-home businesses - NourishCo and Starbucks both delivered robust performance during the year. With tea inflation tapering off, India Beverages business saw a return to normalized margins but the foods business margin was impacted by significant inflation during the year. We dynamically managed the P&L to expand the EBITDA margin for the company, while significantly increasing the A&P in India business and investing behind new businesses to accelerate future growth.
He further added, Our transformation agenda is on track and we made substantial progress against our strategic priorities during the year. We entered the value added, high margin Readyto- Eat category with the acquisition of Tata SmartFoodz. We expanded and strengthened our S&D infrastructure, accelerated momentum on innovation, invested in new drivers of growth and embarked on a global simplification plan to drive further efficiencies and synergies.
The company's board has recommended a final dividend of Rs 6.05 per equity share for the financial year 2022 and it will be paid after the AGM and wihtin 30 days of its declaration.
Furthermore, the company has announced the retirement of John Jacob, senior vice president and chief financial officer, India, will be retiring from the services with effect from 31 May 2022. Sivakumar Sivasankaran has been elected as chief financial officer (CFO) of the company w.e.f. 31 May 2022.
Last month, Tata Consumer Products (TCPL) had announced the merger of all businesses of Tata Coffee with itself as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies. The plantation business of Tata Coffee (TCL) demerged into TCPL's wholly-owned arm TCPL Beverages & Foods (TBFL). The remaining business of TCL, consisting of its extraction and branded coffee business, merged with TCPL. For the merger, 14 equity shares of TCPL was issued for every 55 equity shares of TCL. This enabled the consolidation and 100% ownership of the branded, extractions & plantations business of TCL into TCPL and its wholly owned subsidiary.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The Company's portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world.
Shares of Tata Consumer Products were trading 1.49% lower to Rs 791.90 on BSE.
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