On 2nd Feb, Tata Consumer Products reported a 21 percent year-on-year increase in its consolidated net profit for the October-December quarter at Rs 288 crore.
The company’s revenue from operations grew 5 percent to Rs 3,208 crore. Apart from the international foodservice business exits, the company’s revenue from operations rose 6 percent during the quarter.
Before interest, tax, depreciation, and amortization (EBITDA) grew 28 percent to Rs 468 crore.
The company stated that the India business rose 6 percent, led by India beverages business growth of 1 percent with 6 percent volume growth and foods business growth of 16 percent with 4 percent volume growth.
“In India beverages, we have witnessed enhanced momentum month-on-month with 5 percent volume growth in tea during the quarter, getting 2-year volume CAGR to 8 percent. We have also witnessed substantial volume growth across the Sampann and Nourischo businesses,” the Tata Group company said.
The like-for-like growth in international business was at 2 percent on an elevated base. However, in constant currency terms, it contracted by 1 percent.
Tata Consumer said that during the quarter, the international beverages business revenue went marginally down, cycling an elevated base driven by increase in-home consumption of tea and coffee last year,”
Tata Starbucks registered revenue growth of 60 percent in the December quarter on a relatively low base of last year affected by reduced mobility. Revenue rose 37 percent when indexed to the same period in FY20.
Tata Consumer MD and CEO Suni D’Souza commented that we delivered strong performance with enhanced profitability in a difficult operating environment. Both tea and salt recorded market share profits. Despite inflationary pressures, we had double-digit growth in EBITDA for Q3. We have maintained the momentum of innovation with several new launches across categories.
With the Tata SmartFoodz acquisition, the company wants to expand its portfolio further into higher-margin, value-added categories. Additionally, as the company integrates and synergizes operations, work is underway on making its foods network future-ready in its supply and manufacturing footprint, he added.
“With tea inflation tapering off, we have witnessed a considerable expansion in India beverages margin, however with inflation in foods business, we will manage these through dynamic management of P&L,” D’Souza said.
On a standalone basis, the company’s net profit rose 38 percent to Rs 187 crore. Shares of the company closed 0.92 percent higher at Rs 742.75 on the BSE on Wednesday.
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