Tata Consumer Products Q1 Results FY2023, PAT at Rs. 277 crores

On 10th August 2022, Tata Consumer Products announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- Revenue from Operations for the quarter at Rs. 3327 Crores, up by 11%

- Consolidated EBITDA for the quarter at Rs. 460 Crores grew by 14% 

- Group Net Profit for the quarter at Rs. 277 Crores grew by 38%

Business Highlights:

- The Indian Packaged Beverages business recorded 4% revenue decline on an elevated base that saw 24% revenue growth in the same period last year. 

- Coffee volume grew 43% YoY with revenue growth of 73% during the quarter with new SKU launches and roll out in new geographies

- For the quarter, the India Foods business registered 19% revenue growth on an elevated base that saw 20% growth in the same period last year. 

- The salt portfolio continued its momentum and recorded double digit growth during the quarter despite a high base in Q1 last year. The salt portfolio also continued to record market share gains. The premium salts portfolio recorded 36% growth during the quarter, continuing its strong trajectory in line with our premiumisation agenda.

- Tata Consumer Products recently entered the alternate meat segment with the launch of Tata Simply Better- Plant Based Meat (PBM) range. With this new brand, the company is extending its product portfolio into a new category, targeting consumers who are looking to incorporate more plant-based ingredients for health, sustainability or other considerations

- Tata Soulfull delivered strong growth during the quarter. The brand recently expanded its wholesome snacking portfolio with the launch of Tata Soulfull Masala Oats+, a ‘better for you’ offering with oats and millets. 

- NourishCo sustained strong growth momentum during the quarter with a 110% revenue growth led by strong growth across products and geographies.

- For the quarter, the International Beverages business revenue grew 9%. Tetley continued to gain share in the everyday black and specialty segments in UK. A new variant- Tetley Gold Brew was launched to drive premiumization. Teapigs in UK continued its strong growth trajectory led by good performance in out of home, exports and grocery channels. Eight O’ Clock coffee in the USA (K cups and Bags) saw share gains and grew ahead of the category driven by distribution expansion and targeted promotions. The brand has partnered with International Woman’s Coffee Alliance in their mission to empower women in the coffee industry to achieve sustainable livelihoods.

- Tata Starbucks recorded revenue growth of 238% for the quarter, albeit on a low base, led by normalized store operations with lower restrictions. Opened 7 new stores during Q1 and entered four new cities - Jalandhar, Anand, Nagpur, and Calicut. This brought the total number of stores to 275 across 30 cities

Commenting on the results, Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said: “We delivered double-digit revenue growth and improved profitability for the company despite a challenging macro environment and inflation impact in some of our categories. We recorded market share gains in both our core categories of tea and salt in India. Our new engines of growth- NourishCo, Tata Sampann, Tata Soulfull and Tata Q are making good progress and expanding their market presence. We have significantly accelerated the pace of innovation with a number of new launches across categories aimed at expanding our portfolio and reaching new consumer segments. In terms of profitability, we delivered an EBITDA margin expansion YoY, despite severe inflationary pressures in the salt business and significantly higher A&P. Our transformation agenda continues to be on track. We have increased our reach substantially across channels while strengthening our sales & distribution infrastructure and our digital capabilities. We will continue to stay focused on driving growth and balancing margins in our quest to becoming a leading FMCG company.”