Results for the Quarter ended 30th September 2022
Revenue from Operations for the quarter at Rs 3,363 Crs up 11%. For six months ended, Revenue at Rs 6,690 Crs up 11%
Consolidated EBITDA for the quarter at Rs 438 Crs, grew 4% and for six months ended EBITDA at Rs 897 Crores grew 9%.
Group Net Profit for the quarter at Rs 389 Crs grew 36%, Group Net Profit for six months at Rs 666 Crs grew by 37%
Tata Consumer Products Ltd. today announced its results for the quarter ended 30th September 2022.
For the quarter, Revenue from operations increased by 11% (10% in constant currency) as compared to the corresponding quarter of the previous year. Profit before exceptional items and tax at Rs 370 Crores is 2% higher reflecting the impact of inflationary pressures, weakness in currency and some lag in pricing in the International business. Group Consolidated Net Profit at Rs 389 Crores is higher by 36%
Some of the key Business updates are:
- For the quarter, the India Packaged Beverages business recorded 7% revenue decline due to pricing corrections and overall softness in the category. We continued to record volume market share gains in branded tea.
- Coffee continued its strong performance with a revenue growth of 39% during the quarter.
- We continued the momentum on innovation with the launch of Tata Tea Gold Saffron- signature Assam tea with natural saffron flavour, and the launch of a new season range for Sonnets by Tata Coffee- our premium coffee range.
- We continued to drive premiumisation, as the premium tea portfolio continued to grow faster than the base portfolio.
- Tata Tea Premium celebrated 75 years of India’s Independence with a special collection of tin cans, teacups, and plates commemorating great moments of pride from India’s post independence history.
- Tata Tea Gold launched its festive edition series celebrating the various art forms of West Bengal, bringing alive the joy of Durga Puja. Chakra Gold Tea launched an exclusive campaign in AP & Telangana during Navaratri supporting Kondapalli toys, an art form with a rich tradition in these states. Tata Tea Kanan Devan recorded its highest-ever volumes in Kerala led by on-ground activations during Onam.
- For the quarter, the India Foods business registered 29% revenue growth despite an elevated base that saw 23% growth in the same period last year.
- The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in Q2 last year. The salt portfolio also continued to record market share gains.
- Tata Salt Immuno was launched with new & improved packaging to better showcase the Zinc proposition. The brand was successfully launched in newer markets in the western part of the country.
- The Tata Sampann portfolio recorded strong double-digit growth led by broad based performance across pulses, poha and spices
- Tata Sampann launched a new campaign with Manoj Bajpayee to build awareness about the goodness of unpolished pulses and the promise of Tata Sampann. https://www.youtube.com/watch?v=WVF0kjHuUrA
- Tata Sampann spices launched a customized mix for AP and Telangana to better serve the South Indian market. The spices range expanded its portfolio in India into high-value spices with the launch of Asafoetida (Hing).
- Tata Sampann Dry Fruits is scaling up well with strong growth and share gains across e-commerce platforms.
- Tata Consumer Products launched another addition to its protein platform with the launch of Tata GoFit- plant protein powder, a health supplement range for women who are on their journey to be fitter every day. Tata GoFit has been specially developed for women and has an innovative and differentiated formulation with digestion-friendly enzymes and gut-friendly probiotics. https://www.tataconsumer.com/news/tata-consumer-products-enters-health-supplements-segment-launches-plant-protein-powder-under
- We relaunched our Ready-To-Eat (RTE) business (formerly Tata Q) under the new brand name of Tata Sampann Yumside with a revamped and expanded portfolio. This includes reformulation of existing products to enhance overall consumer experience and expansion into the ethnic Ready to Eat (RTE) category. The brand will also be launching ethnic innovations in the Ready to Cook (RTC) category. https://www.tataconsumer.com/news/tata-consumer-products-renovates-and-rebrands-tata-q-tata-sampann-yumside-new-and-larger-range
- Tata Soulfull delivered strong growth during the quarter. Tata Soulfull Masala Oats+, a ‘better for you’ offering with oats and millets, saw good consumer response across key channels. A new enhanced Tata Soulfull millets muesli with 25% millets was launched to further strengthen the health proposition and provide a better crunchier taste experience to consumers.
- NourishCo sustained strong growth momentum during the quarter with a 63% revenue growth led by growth across products and geographies. Himalayan recorded excellent growth and continued to remain EBIT positive during the quarter. Himalayan honey and preserves saw good consumer response. The Himalayan brand celebrated ‘Himalayan Day’ by partnering with Ladakh marathon for the world’s highest Ultra Marathon ‘ Himalayan Khardungla Challenge 2022’ with the objective of giving back to its source and supporting the cause of protecting local communities affected by melting Himalayan glaciers in the Ladakh region. https://www.tataconsumer.com/news/himalayan-celebrates-himalayan-day-support-communities-affected-melting-himalayan-glaciers
- We reached new milestones in our Sales & Distribution transformation agenda. Our direct reach is now 1.4 million outlets and the number of our super stockists has grown by 20%
- We continued to see strong growth in alternate channels, with Modern Trade channel growing 18% YoY. The Ecommerce channel grew 40% contributing to 9.2% of India business sales. Additionally, alternate channels continued to support the innovation agenda with 11% of Ecommerce revenue coming from NPD (New Product Development) sales during the quarter.
- For the quarter, the International Beverages business revenue grew 7%
- In the UK, TCPL became the third largest branded tea company by market share, displacing Twinnings.
- Teapigs in UK launched an iced tea range supported with ‘Summer of teapigs’ campaign across print and digital platforms.
- Eight O’ Clock (EOC) coffee in the USA recorded share gains, with EOC K cups growing ahead of the category.
- The newly launched Tetley Sweet Tea Cold Brew strengthened our presence in the specialty tea segment in the USA. Tetley Irish Breakfast tea continued to do well led by distribution gains and ongoing promotion activity.
- In Canada, launched a new range of teas under Tetley Live teas. The range features 3 variants – Live Cool (Peppermint spearmint), Live Bold (Cinnamon chai rooibos) and Live Calm (Camomile, spearmint, orange)
- Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by normalized store operations and a revival in out of home consumption.
- Started its 10th anniversary celebration with ‘Brew your own Starbucks’ campaign giving customers a chance to create beverages to be featured on the menu.
- Opened 25 new stores during Q2, the highest ever number of quarterly store openings in its history and entered 5 new cities. This brought the total number of stores to 300 across 36 cities.
- Tata Consumer Products has been ranked in Kantar India as Brand Footprint Report 2022 as the 5th Most Chosen FMCG Brand in India.
- Tata Tea was awarded as the ‘Most Purposeful FMCG brand’ in India by Kantar Brandz 2022 Most Valuable Indian Brands.
- Tata Tea Chakra Gold won the Brand of the Year at Exchange4media’s Indian Marketing Awards South 2022.
- Tata Consumer Soulfull emerged as the winner of exchange4media D2C award at the e4m D2C Revolution Awards 2022.
- Tata Consumer Products’ Beverages packeting centres in Gopalpur & Kellyden won Silver in the India Green Manufacturing Challenge 2021-22 by the International Research Institute for Manufacturing.
- Tata Consumer Products won Gold for the Best Business/ Financial Content (Print) at the India Content Leadership Awards & Conference 2022 by Inkspell & India Creative Industries Council.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered another quarter of double digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets.
While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position. We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out of home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter.
While unprecedented inflation & adverse currency movements in our International business have weighed on our margin this quarter, we will be driving structural cost-saving initiatives to improve the trajectory going forward. Our transformation agenda to become a leading FMCG company continues to be on track. We are making consistent progress in expanding our reach across channels, strengthening our innovation capabilities, and embedding digital transformation across the organization. We will continue to stay focused on growth while fuelling our new businesses.”
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, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat 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, Tata Soulfull and Tata Q. In India, Tata Consumer Products has a reach of over 201 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The Company has a consolidated annual turnover of ~Rs. 12,400 Crs with operations in India and International markets. Last 10-year financials are available on Historical financial data.
For more information on the Company, please visit our website 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.