Tata Consumer Products Q4 Results FY2023, Net profit at Rs. 289.56 crores, up by 21.13%

On 25th April, Tata Consumer Products announced its results for the last quarter of FY2023.

Tata Consumer Products Net Revenue:

- For the quarter, Revenue from operations increased by 14% (12% in constant currency) at Rs. 3618.73 crores as compared to the corresponding quarter of the previous year, mainly driven by underlying growth of 15% in India Business, 6% in International Business, and 9% in Non-Branded Business.
- For the year, Revenue at Rs 13,783 Crores, up by 11% YoY. 

Tata Consumer Products Net Profit:

- Consolidated EBITDA for the quarter at Rs 518 Crores grew by 13% For the year EBITDA at Rs 1,874 Crores up 7%
- Profit before exceptional items and tax at Rs 456 Crores is 13% higher as compared to the corresponding quarter of the previous year reflecting strong growth in the India branded business and stable performance in International and Non-branded business. 
- Group Consolidated Net Profit was reported at Rs 289.56 Crores for Q4FY23, up by 21.13% YoY.
- Group Net Profit for the year stood at Rs 1,320 Crores, up by 30% 

Tata Consumer Products Business Highlights:

India:

- For the quarter, the India Packaged Beverages business delivered 1% revenue growth and 3% volume growth, recording a sequential recovery
- Coffee continued its strong performance with revenue growth of 31% YoY
-  Continued to retain market leadership in tea in the E-commerce channel 
- For the quarter, the India Foods business delivered 26% revenue growth and 8% volume growth, bringing to close a strong year for the foods business when revenue grew 26%. 
- The salt portfolio continued its strong momentum and recorded double-digit revenue growth during the quarter and also during the year. The salt portfolio also continued to record market share gains
- The value-added salts portfolio grew 4.5x during the year, in part led by new innovations like Tata Salt Immuno- salt fortified with zinc
- Tata Sampann continued its strong trajectory in Q4, recording double-digit revenue growth for the quarter and also for the year.
- NourishCo had a landmark year, hitting Rs 621 cr in net revenue, up 80% led by broad based performance across products and geographies. 

International:

- For FY23, the International Beverages business revenue grew 8% and we implemented price increases in all markets to mitigate inflation. 
- In the USA, teapigs continued to outpace the specialty tea segment and after the successful launch of Tata Raasa (a Ready to Eat and Ready to Cook range developed specifically for international markets) in ethnic channels, Tata Consumer Products is gearing up for its mainstream launch.
- In Canada, Tetley launched the ‘Live teas’ specialty tea range and introduced the Tata World Foods portfolio. 

Tata Starbucks:

- Tata Starbucks recorded strong revenue growth of 48% for the quarter, bringing FY23 growth to 71%, albeit on a base that was impacted by the pandemic
- Opened 71 new stores during the year and entered 15 new cities- the highest-ever annual store addition. This brought the total number of stores to 333 across 41 cities.
- Tata Starbucks launched the Starbucks Tribute blend- an ode to three coffee-growing regions across the world. 
- Tata Starbucks launched Barista Pride- 320 unique creations by our baristas in 320 stores in January ‘23

Commenting on the results, Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered strong topline growth of 11% while balancing margins in an extremely volatile macro environment this fiscal. Importantly, we delivered a strong earnings growth of 28%. 
During the quarter, we saw early signs of green shoots in our branded tea business, with the interventions we put in place starting to yield positive results. In our other core business of salt, we continued to execute strongly and have gained market share despite pricing actions taken to mitigate inflation. Our innovation across categories has picked up pace significantly with the number of new product launches in FY23 being almost 2X of FY22. Our growth businesses (Tata Sampann, Tata Soulfull, and NourishCo) continued their strong growth trajectory and have increased their salience significantly over the past couple of years, accounting for 15% of India business this fiscal. Tata Starbucks recorded a strong performance, hitting a 4-digit topline along with achieving its highest-ever number of annual store additions. 
We reached new milestones in our Sales & Distribution expansion and are on track to achieving a total reach of 4 mn outlets by this year as per our earlier guidance. We are embedding digital transformation across the business and will be using this to drive decision-making in areas such as new product development, procurement, and revenue growth management. 
Our transformation journey to becoming a leading FMCG company is on track and we will continue to stay focused on driving profitable growth along with building futureready capabilities.”