Tata Consumer Q1 PAT slides 8% YoY to Rs 290 cr

The FMCG major's consolidated net profit declined 8.3% to Rs 290.32 crore in Q1 FY25 as against Rs 316.59 crore recorded in Q1 FY24.

The net profit declined on account of higher exceptional items and lower share of profits from associates and joint ventures.

However, revenue from operations jumped 16.33% to Rs 4,352.07 crore in the quarter ended 30 June 2024.

Profit before exceptional items and tax stood at Rs 464.95 crore in Q1 FY25, down 6% YoY as an improvement in operating performance was more than offset by finance cost and amortisation charges. The company reported an exceptional loss of Rs 17.10 crore during the quarter.

 

EBITDA grew 23% YoY to Rs 671 crore while EBITDA margin improved to 15.4% in Q1 FY25as compared to 14.6% posted in Q1 FY24.

For the quarter, the India Beverages business revenue grew 6% (+1% organic growth), as the category was impacted by an intense summer. Coffee continued its strong trajectory with a revenue growth of 28% for the quarter.

The India Foods business revenue grew over 30% during the quarter (+14% organic growth), continuing its double-digit growth trajectory. Salt revenue grew 9%, driven by strong volume growth. Additionally, in line with our premiumization agenda, the value-added salt portfolio continued its strong momentum and grew 35% during the quarter.

Growth businesses, including Capital Foods and Organic India, now account for 29% of the companys India business.

The company said that the channels of the future continued to fuel its growth and innovation agenda. Ecommerce channel grew 61% and Modern Trade recorded 28% growth in the quarter.

The International business revenue grew 10% excluding Capital Foods and Organic India acquisitions (up 8% constant currency). The profitability improved significantly led by structural interventions and pricing actions.

Tata Starbucks opened 17 net new stores during the quarter and entered 4 new cities. This brings the total number of stores to 438 across 65 cities.

Sunil DSouza, managing director & CEO of Tata Consumer Products, said, We delivered good topline growth of 16% in Q1 FY25 (+10% organic growth), with an EBITDA growth of 23%. During the quarter, we recorded strong growth in the India salt business, our India tea business was impacted by an intense summer. Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz, Capital Foods, Organic India) recorded 66% growth (20% organic growth). Tata Starbucks sustained momentum in its expansion agenda with its store count now at 438 stores spanning a total of 65 cities.

We also delivered strong performance in our International markets, along with significant margin expansion, led by structural interventions and pricing actions.

In India, we continue to strengthen our sales & distribution infrastructure and have implemented split routes as announced earlier, this is expected to add about 35% additional feet on street. Channels of the future (modern trade and e-commerce) continue to be strong contributors to our growth algorithm. 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.

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.

Shares of Tata Consumer Products shed 0.64% to settle at Rs 1,193.85 on the BSE.

Powered by Capital Market - Live News