Tata Consumer Products’ Q1FY25 Quarter Results

• Tata Consumer Products reported a 10.7% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended June (Q1FY25). On a year-on-year (YoY) basis, it witnessed a growth of 16%.
• Its expenses for the quarter were up by 14% QoQ and 19% YoY.
• The net profit grew 36% QoQ and reduced 14% YoY.
• The earnings per share (EPS) of Tata Consumer Products stood at 3.1 during Q1FY25.

Tata Consumer’s Financial Statements for Q1FY25:

Financials:

• Revenue: Increased by 16.3% year-on-year to ₹4,352 crores.
• EBITDA: Rose by 22.4% to ₹667 crores.
• EBITDA Margin: Improved to 15.3% from 14.6% in the previous year.
• Net Profit: Declined by 14% year-on-year to ₹314 crores in Q1FY25.
• EBITDA: ₹671 crores, up 23%, with a margin expansion of 80 bps to 15.4%.
• Earning per share: ₹3.1.

Management Commentary:

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, said

• “We delivered good top line growth of 16% in Q1FY25 (+10% organic growth), with an EBITDA growth of 23%.
• During the quarter, we recorded strong growth in the India salt business, and our India tea business was impacted by an intense summer. Our growth businesses recorded a 66% growth (20% organic growth).
• Tata Starbucks sustained momentum in its expansion agenda, with its store count now at 438 stores, spanning 65 cities.
• We also delivered a strong performance in our International markets, along with significant margin expansion, led by structural interventions and pricing actions. In India, we continue to strengthen our Sales & Distribution infrastructure and have implemented split routes as announced earlier, and this is expected to add about 35% additional feet on the street. Channels of the future (modern trade and e-commerce) continue to be strong contributors to our growth algorithm. In addition, we are piloting our go-to-market in the pharma channel (for our health & wellness portfolio) and in the food service channel.
• We have completed the end-to-end integration of our recent acquisition -Capital Foods and are on track to complete the integration of Organic India. Identified synergy benefits have started accruing in both businesses.”

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