The FMCG major's consolidated net profit grew 38% to Rs 277 crore on 11% rise in revenue from operations to Rs 3,327 in Q1 FY23 over Q1 FY22.
The rise in group net profit was mainly aided by growth in profitability and improved performance of Joint ventures and Associates partly offset by higher exceptional costs. The increase in revenue was mainly driven by growth in India, International and non-branded business.
The company's revenue from India business stood at Rs 2,145.20 crore (up 8.8% YoY), revenue from International business was at Rs 836.62 crore (up 8.99% YoY) and revenue from non-branded business stood at Rs 351.70 crore (up 26.67% YoY) in Q1 FY23.
Profit before exceptional items stood at Rs 403.45 crore in Q1 FY23, up 19% from Rs 340.28 crore reported in the corresponding quarter previous year. Exceptional item for the current quarter mainly represent costs relating to the business restructure & reorganisation of Rs 23 crore and cost relating to scheme of arrangement of Rs 1 crore. Exceptional item for the corresponding quarter previous year represents costs relating to the business restructure of Rs 4 crore.
EBITDA improved by 14% to Rs 460 crore in Q1 FY23 from Rs 403 crore posted in Q1 FY22. EBITDA margin stood at 13.8% in Q1 FY23 as compared to 13.4% reported in Q1 FY22.
For the quarter, as the company corrected tea pricing the India Packaged Beverages business recorded 4% revenue decline on an elevated base that saw 24% revenue growth in the same period last year. The company continued to record market share gains in branded tea. Coffee volume grew 43% year on year with revenue growth of 73% during the quarter with new SKU launches and roll out in new geographies.
The salt portfolio continued its momentum and recorded double digit growth during the quarter despite a high base in Q1 last year. The salt portfolio also continued to record market share gains. The premium salts portfolio recorded 36% growth during the quarter, continuing its strong trajectory in line with the firm's premiumisation agenda.
During the quarter, the International Beverages business revenue grew 9%. Tetley continued to gain share in the everyday black and specialty segments in UK. Eight O' Clock coffee in the USA (K cups and Bags) saw share gains and grew ahead of the category driven by distribution expansion and targeted promotions.
Tata Starbucks recorded revenue growth of 238% for the quarter, albeit on a low base, led by normalized store operations with lower restrictions. Delivery channel salience remained ahead of pre-Covid levels. Opened 7 new stores during Q1 and entered four new cities - Jalandhar, Anand, Nagpur, and Calicut. This brought the total number of stores to 275 across 30 cities.
Sunil D'Souza, managing director & CEO of Tata Consumer Products said "We delivered double digit revenue growth and improved profitability for the company despite a challenging macro environment and inflation impact in some of our categories."
"We recorded market share gains in both our core categories of tea and salt in India. Our new engines of growth- NourishCo, Tata Sampann, Tata Soulfull and Tata Q are making good progress and expanding their market presence. We have significantly accelerated the pace of innovation with a number of new launches across categories aimed at expanding our portfolio and reaching new consumer segments. In terms of profitability, we delivered an EBITDA margin expansion YoY, despite severe inflationary pressures in the salt business and significantly higher A&P," he stated.
D'Souza further added, "Our transformation agenda continues to be on track. We have increased our reach substantially across channels while strengthening our sales & distribution infrastructure and our digital capabilities. We will continue to stay focused on driving growth and balancing margins in our quest to becoming a leading FMCG company."
Tata Consumer Products (TCPL) 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 up 0.24% to settle at Rs 790.15 on the BSE.
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