August 1, 2024
New Delhi, India
Q1 Results
Tata Consumer Products, the owner of popular brands such as Tetley tea and Ching’s Secret noodles, reported its financial results for the first quarter of fiscal 2024-25 (Q1FY25) on Tuesday. The company recorded an 8.3% decline in net profit, which fell to ₹290.3 crore from ₹317 crore in the same period a year ago. This decrease is attributed to higher exceptional items and a lower share of profits from associates and joint ventures.
Key Financial Highlights:
Net Profit and Revenue: The net profit for Q1FY25 stood at ₹290.3 crore, down 8.3% from ₹317 crore in Q1FY24. However, the company’s revenue increased by 16.3% to ₹4,352.1 crore, compared to ₹3,741 crore in the same period last year. This growth was driven by additional revenue from the acquisitions of Organic India and Capital Foods, along with 10% organic growth.
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India Business Performance:
Beverages: Revenue from the beverages segment grew by 6% (1% organic growth) despite being affected by an intense summer. The coffee business continued its strong performance, with a 28% revenue growth for the quarter.
Nourishco: The ready-to-drink business, Nourishco, recorded a 7% revenue growth. The growth was muted due to a high base and the intense summer impacting out-of-home consumption.
Foods: The India foods business saw over 30% revenue growth (14% organic growth), maintaining its double-digit growth trajectory. The salt business, in particular, experienced a 9% revenue increase driven by strong volume growth.
Consolidated Results: Tata Consumer Products reported a consolidated net profit attributable to owners of ₹290 crore, an 8.5% decline from ₹317 crore in the previous year’s corresponding period. The consolidated revenue for the quarter rose by 16% to ₹4,352 crore, up from ₹3,741 crore a year ago.
EBITDA and Margins: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q1FY25 increased by 23% to ₹671 crore, with a margin expansion of 80 basis points to 15.4%.
Management Comments: Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, highlighted the company’s continued efforts to strengthen its sales and distribution infrastructure in India. The implementation of split routes, as previously announced, is expected to increase the number of sales representatives by about 35%.
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