Tata Consumer Q2 Profit Rises 36 pc to Rs 355 cr
Tata Consumer Q2 Profit Rises 36 pc to Rs 355 cr

Tata Consumer Products has reported a 36 percent year-on-year (YoY) growth in net profit at Rs 355 crore for the quarter that ended September. In the corresponding quarter last fiscal, net profit stood at Rs 261 crore.

Sequentially, profit rose 28.4 percent. Group's consolidated net profit was higher at Rs 389 crore aided by the exceptional income of Rs 147 crore from the sale of land.

Consolidated revenue came in at Rs 3,363 for the quarter, an increase of 11 percent over the same period last year. Sequentially, revenue rose 1.1 percent from Rs 3,326 crore.

“We delivered another quarter of double-digit revenue growth while balancing margins despite inflationary pressures, weakness of the currency, and some lag in pricing in international markets," Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA for the quarter grew 4 percent YoY to Rs 438 crore. EBITDA margin however declined 100 basis points YoY to 13 percent, impacted by international business profitability.

"While unprecedented inflation and adverse currency movements in our international business have weighed on our margin this quarter, we will be driving structural cost-saving initiatives to improve the trajectory going forward," D’Souza added.

India Business

For the quarter, the India Packaged Beverages business recorded a 7 percent revenue decline with a 1 percent volume decline due to pricing corrections and overall softness in the category. Meanwhile, India Foods business registered 29 percent revenue growth, with volumes remaining flat.

Tata Sampann, NourishCo, and Tata Soulfull have delivered significant growth and are expanding their portfolio and reach, the company said. Coffee recorded revenue growth of 39 percent during the quarter.

Meanwhile, the salt portfolio's revenue jumped 27 percent, despite a high base. And, Tata Sampann's portfolio delivered strong growth of 37 percent, led by broad-based performance across pulses, poha, and spices.

During the quarter, NourishCo sustained its momentum with a 63 percent revenue growth, the company said in an exchange filing. The FMCG major also re-launched its Ready-To-Eat portfolio under the brand name Tata Sampann Yumside.

Tata Starbucks

Led by normalized store operations and a revival in out-of-home consumption, Starbucks recorded a revenue increase of 57 percent for the quarter.

The Tata firm also opened 25 new stores, the highest ever number of quarterly store openings in its history, and entered 5 new cities. The total number of stores is now 300 across 36 cities, informed the company.

International Business

Tata Consumer Products' international business revenue was up 7 percent for the quarter (+6 percent in constant currency terms) at Rs 839 crore. International Business EBITDA fell 41 percent, owing to input cost inflation, currency weakness, and lag in pricing.

The US Coffee business which includes the Eight O'Clock brand saw a volume decline of 2 percent while the International Tea business which includes brands like Tetley, Teapigs, and GoodEarth saw a volume decline of 5 percent.

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