Tata Consumer Products Q2 Results FY2023, PAT at Rs. 389 crores

On 20th October 2022, Tata Consumer Products announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

-  Revenue from Operations for the quarter at Rs 3,363 Crores up 11%. For six months ended, Revenue was at Rs 6,690 Crores, up by 11% 
- Consolidated EBITDA for the quarter at Rs 438 Crs, growth by 4%, and for six months ended EBITDA at Rs. 897 Crores, growth by 9%. 
- Net Profit for the quarter was reported at Rs 389 Crores, with a growth of 36%, Group Net Profit for six months at Rs 666 Crores grew by 37%

Business Highlights:

- For the quarter, the India Packaged Beverages business recorded a 7% revenue decline due to pricing corrections and overall softness in the category. 
- The coffee business continued its strong performance with revenue growth of 39% during the quarter
- For the quarter, the India Foods business registered 29% revenue growth despite an elevated base that saw 23% growth in the same period last year.
- The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in Q2 last year. The salt portfolio also continued to record market share gains
- Tata Sampann Dry Fruits is scaling up well with strong growth and share gains across e-commerce platforms. 
- Tata Consumer Products launched another addition to its protein platform with the launch of Tata GoFit- plant protein powder
- NourishCo sustained strong growth momentum during the quarter with a 63% revenue growth led by growth across products and geographies. 
- For the quarter, the International Beverages business revenue grew 7% 
- In the UK, TCPL became the third largest branded tea company by market share, displacing Twinnings
- Eight O'Clock (EOC) coffee in the USA recorded share gains, with EOC K cups growing ahead of the category. 
- The newly launched Tetley Sweet Tea Cold Brew strengthened our presence in the specialty tea segment in the USA. Tetley Irish Breakfast tea continued to do well led by distribution gains and ongoing promotion activity. 
- In Canada, Tata Consumer Products launched a new range of teas under Tetley Live teas. 
- Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by normalized store operations and a revival in out-of-home consumption. Tata Starbucks opened 25 new stores during Q2, the highest ever number of quarterly store openings in its history, and entered 5 new cities. This brought the total number of stores to 300 across 36 cities. 

Commenting on the results, Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said, “We delivered another quarter of double-digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets. While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position. We have accelerated the pace of innovation this year with the number of new launches being twice as much as in the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out-of-home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter. While unprecedented inflation & 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. Our transformation agenda to become a leading FMCG company continues to be on track. We are making consistent progress in expanding our reach across channels, strengthening our innovation capabilities, and embedding digital transformation across the organization. We will continue to stay focused on growth while fuelling our new businesses.”

Tata Consumer Products share price dropped by 1.86%.