NEW DELHI, Apr 23
Tata Consumer Products on Tuesday posted its fiscal fourth quarter earnings with profit at Rs 267.71 crore, down 22.5 per cent on-year in comparison to Rs 345.58 crore during the fourth quarter of FY23, missing estimates. It posted revenue from operations at Rs 3926.94 crore for the quarter ended March 31, 2024, up 8.5 per cent as against Rs 3618.73 crore during the same period last year, with strong performance in India business, which grew 10 per cent. According to a CNBC TV18 poll, Tata Consumer Products was expected to report Q4 profit at Rs 315 crore and the revenue was estimated at Rs 3991 crore during the quarter in review.
While the total income recorded during the quarter was at Rs 3965.39 crore, total expenses incurred in Q4 stood at Rs 3455.93 crore. The company’s consolidated EBITDA for the quarter came in at Rs 631 crore, up 22 per cent, and for the year, it was at Rs 2323 crore, up 24 per cent.
RJ Corp Succession Plan: Ravi Jaipuria’s son Varun gets food & beverages, daughter Devyani to head education and health
The company board also recommended a final dividend of Rs 7.75 per equity share of Re 1 each (775 per cent) for the financial year 2023-24. “The dividend, if approved by the members at the ensuing 61st Annual General Meeting, will be paid/dispatched (subject to deduction of tax at source) after the AGM and within 30 days of its declaration,” the company said in a regulatory filing.
Tata Consumer’s India biz performance
For the quarter in review, the India packaged beverages business delivered a revenue growth of 2 per cent. While the coffee business continued its strong performance with a revenue growth of 45 per cent for the quarter, the company continued to retail market leadership in tea in the e-commerce channel. During FY24, premium and sub premium segments outperformed the overall business and accounted for over two thirds of India tea revenue. Gold, Premium and Tetley Green franchises delivered strong results, it said.
For the fourth quarter, the India foods business grew by 20 per cent, continuing its double-digit growth trajectory. Tata Consumer Products said that the value-added salt portfolio continued its strong momentum and grew 34 per cent during FY24, accounting for 9 per cent of the overall salt business. Its Tata Sampann portfolio recorded a growth of 42 per cent for the quarter.Nourishco (RTD business) recorded revenue growth of 13 per cent during the quarter, bringing FY24 growth to 33 per cent.
“Momentum on innovation continued with innovation-to-sales ratio at 5 per cent + in the India business. We launched one new product nearly every 7 days during the year,” the company said.
In terms of sales and distribution infrastructure, Tata Consumer Products said that the company expanded its total reach to 4 million outlets as of March ‘24 and it was further deepened through the addition of 1300+ distributors in FY24, primarily in Rurban markets. While e-commerce channels grew by 35 per cent, modern trade recorded 9 per cent growth in FY24. E-commerce accounted for 11 per cent of India business in FY24, up from 9 per cent last year.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, said, “We delivered good topline growth of 10 per cent in FY24, but importantly an EBITDA growth of 24 per cent and significant expansion in EBITDA margin. During the year, we recorded growth in India tea and salt businesses. Our premiumization agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio. Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong growth trajectory with a revenue growth of 40 per cent in FY 24.”
“On average, in FY24, we launched a new product almost every seven days.
There has been a step change in our Digital Transformation agenda with the launch of a best-in-class commodity procurement platform as well as a Go-to-market platform leveraging AI. This will enable greater agility, better decision making and help drive business growth.
Our recently announced acquisitions- Capital Foods and Organic India will be significant value creators for the company, enabling expansion into high growth, high margin categories. The front end and back-end integration for Capital Foods was completed within 60 days of transaction close. The transaction for Organic India closed on 16th April and we will focus on fast tracking integration of the business to unlock value,” he added.
Tata Consumer’s international biz performance
For Q4FY24, the international business revenue grew by 7 per cent. While the UK market saw strong share gains across all our major retail partners, during the quarter, in the USA, Tata Raasa (RTE range) got listed in 100 Stop & Shop stores, it said.
Tata Starbucks
Tata Consumer Products added 29 net new stores for Tata Starbucks during the fourth quarter and entered into 6 new cities. This year, it added, saw the highest store addition at 95 stores, taking the total number of stores to 421 across 61 cities. The My Starbucks Rewards loyalty program crossed 3 million patrons, reporting a 30 per cent growth YoY.
Sunil D’Souza said, “Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities. We also delivered strong performance in our International markets, along with significant margin improvement. The UK business saw its EBITDA margin touch historic highs led by restructuring initiatives taken during the year.”
