Results for the Quarter and Year ended 31st March 2021
Revenue from Operations for the Quarter at Rs 3,037 Crores is up 26% and Full Year at Rs 11,602 Crores is up 20%.
Consolidated Profit before Exceptional Items for the Quarter and Tax grew by 6% to Rs 262 Crores and Full year grew by 24% to Rs 1342 Crores.
Group Net Profit for the Quarter at Rs 74 Crores is higher by 161% and Full Year at Rs 930 Crores is higher by 102%.
Tata Consumer Products Ltd. today announced its results for the quarter and year ended 31st March 2021.
For the quarter, Revenue from operations grew by 26% (24% in constant currency) as compared to corresponding quarter of the previous year, mainly driven by strong volume and value growth in the India Food & Beverage business. Sequential recovery continued for our out-of-home India businesses i.e. NourishCo & Tata Starbucks, notwithstanding the recent headwinds induced by second wave of COVID. Profit before exceptional items and tax at Rs 262 Crores is higher by 6%, as compared to corresponding quarter of the previous year, mainly on account of tea cost inflation in India and higher investment behind brands which partly offset the revenue growth and strong control on overheads. Group Consolidated Net Profit is higher by 161% as compared to corresponding quarter of the previous year on account of lower exceptional expenditure and improved performance in Associates & Joint Ventures.
Some of the key Business updates are:
- For the quarter, the India Packaged Beverages business recorded a 53% value growth and 23% volume growth, driven by robust growth across most of our brands that also resulted in market share gains.
- In line with our focus on premiumization & digital, two premium brands were launched through a D2C model - Tata Tea 1868, a range of luxury teas (https://www.tatatea1868.com) and Sonnets by Tata Coffee, a premium Roast & Ground coffee offering (https://tatacoffeesonnets.com).
- Continuing with the hyperlocal theme, brands across the beverages portfolio ran new marketing campaigns and launched festive packaging for Holi.
- For the quarter, the India Foods business registered a 22% revenue growth and 21% volume growth. This translated to 17% revenue growth in Salt portfolio and 26% revenue growth in Tata Sampann portfolio for the year.
- During the year, Tata Salt saw market share gains with value-added salts portfolio growing much faster in line with our premiumisation agenda.
- Stepping up the momentum on innovation, Tata Sampann portfolio saw 5 new product launches in the Ready to cook category during the quarter- Haldi doodh mix, masala daliya khichdi mix, dhokla mix, supergrain ragi idli mix and supergrain ragi dosa mix.
- NourishCo sustained strong growth momentum during the quarter with a 86% revenue growth, albeit on a low base impacted by COVID in March’20. Geographic expansion and capacity addition for the business is on track. Tata Water Plus and Tata Gluco Plus both delivered exceptional growth. Tata Fruski- an innovative drink, inspired by local street culture, was launched in Hyderabad and Vizag with strong initial response.
- In line with our strategic priority of exploring new opportunities, the Health & Wellness focused foods portfolio was further enhanced through acquisition of Kottaram Agro Foods Pvt Limited (brand Soulfull) – now renamed as Tata Consumer Soulfull. This opens significant opportunities in the fast growing ‘on the table’ and ‘on the go’ segments.
- The integration of the India Foods and Beverages businesses is now complete. A redesigned Sales & Distribution system is in place with digitization across channel partners, a new integrated business planning system covering demand and supply planning is now live, ERP integration and migration to SAP4HANA in India is complete. As part of its transformation journey, the Company continues to focus on building blocks for the future- S&D infrastructure, Digital, A&P and Innovation
- During the quarter, the International Beverages business growth rates slowed owing to pantry loading in the base quarter last year.
- During the year, Tetley grew share in the rapidly growing segments of Decaf, Fruit & Herbal and Green tea in the UK.
- Tetley has developed an OOH (Out of Home) range in the UK, relaunched with new product and packaging which is 100% recyclable.
- Teapigs, our super premium tea brand saw robust revenue growth, largely driven by increased focus on e-commerce channel.
- Eight O’Clock Coffee recorded good growth during the quarter. Innovation momentum continued with good performance of Barista Blends and the K cup decaf variant.
- Tetley in Canada recorded excellent growth. It continues to be the #1 brand in the market, with volume leadership in both regular and specialty tea.
- During the quarter, the Company divested the entire membership interest in Empirical Group LLC and Southern Tea LLC to the JV partner Harris Tea Company LLC, USA (Harris Tea). This move is in line with TCPL’s focus on its core branded businesses in International markets. It will help further simplify and streamline the Company’s operations to enhance business effectiveness and profitability
- Tata Starbucks recorded revenue growth of 14% in Q4.
- It opened 39 new stores and entered 7 new cities during the year
- The year saw new store formats – drive through & small engine stores and entry into cities of Kochi, Lucknow, Amritsar, Ludhiana, Bhopal, Indore and Kanpur.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered yet another Quarter of strong revenue growth, driven by double digit volume growth in India business. The integration of our food and beverage businesses in India is complete as committed and we have started seeing synergy benefits. During the year, we have stepped up our distribution reach, invested behind our brands, and focused on premiumisation in our core portfolio. We continued the momentum in driving the Digital agenda with digitalization of channel partners, implementation of best in class ERP and a new integrated business planning system covering demand and supply planning.
Overall, this year, despite the pandemic, we completed the integration of India business, made significant progress in our transformation journey, delivered strong earnings growth in the face of unprecedented inflation in a key raw material, while prioritising the safety and well-being of our people. Going forward, we will continue to make consistent progress against all our strategic pillars and create value for all stakeholders
About Tata Consumer Products Limited
Tata Consumer Products Limited is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The Company’s portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world. Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Water Plus and Tata Gluco Plus. Its foods portfolio includes brands such as Tata Salt, Tata Sampann and Soulfull. In India, Tata Consumer Products has a reach of over 200 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The Company has an annual turnover of ~Rs. 11,600 cr with operations in India and International markets. For more information, please visit www.tataconsumer.com
Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy. The Company cannot, therefore, guarantee that the ‘forward-looking’ statements made herein shall be realized. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events.