Tata Consumer Products Q1FY25 results: Net profit down 8.3% to Rs 290.3 cr

The salt business revenue grew by 9 per cent on the back of strong volume growth

Tata Consumer Products on Tuesday reported 8.3 per cent fall in its net profit in the first quarter of 2024-25 (Q1FY25) when compared to the same period a year ago, due to higher exceptional items and lower share of profits from associates and joint ventures. The net profit came in at Rs 290.3 crore, against Rs 317 crore reported in the first quarter of FY24.

Its revenue, meanwhile, was up 16.3 per cent at Rs 4,352.1 crore during the quarter on the back of additional revenue from the two acquisitions (Organic India and Capital Foods) and its organic growth stood at 10 per cent in the quarter. 

 

In its India business, its beverages business revenue grew 6 per cent (plus 1 per cent organic growth), as the category was hit by an intense summer. Its coffee business continued its strong trajectory with a revenue growth of 28 per cent for the quarter.

Nourishco (ready to drink business) recorded revenue growth of seven per cent during the quarter. Its growth was muted on account of a high base and intense summer impacting out-of-home consumption.

The India foods business revenue grew over 30 per cent (plus 14 per cent organic growth), continuing its double-digit growth trajectory, the company said in its results release.

Its salt business revenue grew by nine per cent on the back of strong volume growth. 

The Tata Sampann portfolio continued its strong momentum and grew 37 per cent for the quarter and the growth businesses, including Capital Foods and Organic India, now account for 29 per cent of Tata Consumer’s India business.

In its international business, revenue grew 10 per cent excluding Capital Foods and Organic India acquisitions (plus 8 per cent constant currency) and the business’s profitability improved significantly led by structural interventions and pricing actions.

“In India, we continue to strengthen our sales and distribution infrastructure and have implemented split routes as announced earlier, this is expected to add about 35 per cent additional feet on street. Channels of the future (modern trade and e-commerce) continue to be strong contributors to our growth algorithm,” Sunil D’Souza, managing director & CEO at Tata Consumer Products said in the results release. 

He added, “In addition, we are piloting our go-to-market in the pharma channel (for our health & wellness portfolio) and in the food service channel. 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.”