Tata Consumer Products Ltd. posted a marginal increase of slightly over one per cent in it’s consolidated net profit in it’s financial earnings for the second quarter (Q2) of the current fiscal year on Tuesday. The company reported a net profit of Rs 359.18 crore in the quarter ended September in 2023-24 (FY24), against Rs 354.98 crore logged in the second quarter of the 2022-23 fiscal year (FY23), revealed via an exchange filing.
The company’s group consolidated net profit stood at Rs 363.98 crore. The firm noted that the total revenue gained 11 per cent to Rs 3,733.78 crore in the second quarter of the current fiscal year, against Rs 3,363.05 crore logged in the same quarter a year earlier.
Consolidated EBITDA for the quarter under review, stood at Rs 569 crore, registering an increase of 30 per cent on a year-on-year (YoY) basis. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often used by companies as an alternative to net income to better understand their finances.
Performance In Different Regions
Region-wise, the company’s India Packaged Beverages business reported a 5 per cent growth in revenue and 3 per cent growth in volume, both on a YoY basis. The company said it managed to maintain it’s market leadership in tea in the E-commerce channel. Further, the coffee segment for the firm grew 17 per cent in revenue on a YoY basis.
The firm also introduced new products like the Tata Coffee Quick filter range of decoction coffee, Tata Tea Gold Vita Care, Tetley Digest, and Immuno Chai. The India Foods business segment logged a 16 per cent growth in revenue and 6 per cent gains in volume, helped by the success of the firm’s value-added salt portfolio during the quarter.
Internationally, Tata Consumer Products recorded a 13 per cent growth in revenue in the quarter. The company said, “In the UK, the rollout of the revamped Tetley tea bag continued through the quarter and consumer response has been positive. Additionally, we forayed in the breakfast cereals category with the launch of a millet-based muesli range under the brand name ‘Joyful’ in over 430 Tesco stores across the UK. In the USA, Tetley and teapigs continued to outpace category growth rates. Eight O’Clock Coffee released its new ad campaign ‘Coffee Craze’ which will run online and through social media platforms. In Canada, Tetley continued to outpace the regular tea and the specialty tea categories during the quarter.”
Tata’s famous Starbucks brand recorded a revenue growth of 14 per cent in the quarter, the firm said. Commenting on the results, Sunil D’Souza, Managing Director and CEO of Tata Consumer Products, said, “We reached newer milestones in our Sales & Distribution build-out, expanding our total reach to 3.8 million outlets as of September ’23 while also improving throughput through focused initiatives in larger towns. We are also strengthening our distribution in rural and semi-urban towns. We continue to record strong growth momentum in alternate channels i.e. modern trade and e-commerce which are critical to our growth and innovation agenda. Our transformation journey to becoming a premier FMCG company is on track. Going forward, we will continue to focus on driving profitable growth along with building future ready capabilities. In tandem, we are progressing our Sustainability roadmap with our recently announced sustainability targets for FY26 which are in line with our long term sustainability commitments.”
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