Results for the Quarter ended 31st December 2020

Results for the Quarter ended 31st December 2020
02 February 2021 1168 words 9-MINUTE READ
News Category
Corporate
Financial-Results
Q3
TCP
Results for the Quarter ended 31st December 2020

Consolidated Results:

Revenue from Operations for the quarter at Rs 3,070 Crores is up 23%;
YTD at Rs 8,565 Crores is up 18%.

Consolidated EBITDA for the quarter grew by 12% to Rs 365 Crores;
YTD grew by 26% to Rs 1,253 Crores.

Group Net Profit for the quarter at Rs 237 Crores is higher by 29%;
YTD at Rs 856 Crores is higher by 47%.

Tata Consumer Products Ltd. today announced its results for the quarter ended 31st December 2020

For the quarter, revenue from operations increased by 23% (21% in constant currency) as compared to the corresponding quarter of the previous year, led by broad based growth in both the India and International branded businesses. Sequential recovery continues for our out-of-home India businesses i.e. NourishCo & Tata Starbucks. EBITDA at Rs 365 Crores and Profit before Exceptional Items and Tax at Rs 298 Crores is higher by 12% and 13% respectively, as compared to the corresponding quarter of last year, despite a period of unprecedented inflation in tea commodity costs in India and increased investments behind our brands in the India business. Group Consolidated Net Profit is higher by 29%.

Some of the key Business updates are:

India

  • For the quarter, the India Packaged Beverages business recorded a 43% value growth and 10% volume growth, driven by robust growth across most of our brands and market share gains.
  • The health & wellness portfolio in beverages was strengthened with new product launches- Tata Tea Tulsi Green, Tata Tea Gold Care and Tetley Green Tea Immune.
  • Continuing with the hyperlocal theme, Tata Tea Premium launched a special festive edition packaging for Diwali, commemorating indigenous art forms and Tata Tea Gold launched festive edition packs in West Bengal for Durga Puja.
  • For the quarter, the India Foods business registered a 19% value growth and 12% volume growth. This was the third consecutive quarter of double-digit revenue growth across the Tata Salt and Tata Sampann portfolio.
  • Tata Salt saw double digit volume growth with the value-added salts portfolio growing disproportionately. The salt portfolio also continued to gain market share during the quarter.
  • Tata Salt launched an integrated marketing campaign #SawaalDeshKiSehatKa to build awareness about iodine and its importance as a micronutrient.
  • NourishCo recorded a 9% revenue growth, in sharp acceleration from a decline of 18% in the preceding quarter. The growth was primarily driven by Tata Water Plus and Tata Gluco Plus.
  • As part of the integration of the foods and beverages businesses in India, a re-designed Sales & Distribution structure has been put in place. End to end digitization across supply chain and distribution partners is underway with channel partner digitization having been completed for urban distributors. The integration is progressing ahead of plan and is expected to be substantially complete by Q4 FY ’21.
 

International

  • During the quarter, the International Beverages business saw steady growth across our key markets- UK, USA and Canada.
  • Tetley continues to grow share in the rapidly growing segments of Decaf, Fruit & Herbal and Green tea in the UK.
  • Teapigs, our super premium tea brand saw robust constant currency revenue growth of 32% during the quarter.
  • Eight O’Clock Coffee recorded good growth driven by recent innovations and distribution gains.
  • Tetley in Canada recorded excellent growth. It continues to be the #1 brand in the market, with both regular and specialty tea growing strongly during the quarter.
 

Tata Starbucks

  • Tata Starbucks has seen a strong sequential recovery with 92% of the stores now having re-opened for business.
  • It launched a Diwali blend pan India, a first of its kind initiative inspired by an Indian festival.
  • The #StaysafewithStarbucks campaign reinforced commitment to customer and employee safety, further strengthening consumers’ trust in the brand.
  • It opened 13 new stores and entered 3 new cities during the quarter. Tata Starbucks celebrated the completion of 8 years in India with a total store count of 209 at the end of Dec’20.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered strong volume and revenue growth during the quarter driven by broad based performance across our major markets and categories. Despite unprecedented inflation in our tea costs in the India business, we managed to deliver strong growth in earnings by leveraging all lines of the P&L. The integration of our food and beverage business in India is progressing ahead of plan and several initiatives on end to end digitization are underway. We have completed the redesign of our S&D system with significantly higher feet on street, increased focus on modern trade and e commerce, 100% channel partner automation and expanded outlet reach.

We have stepped up the pace of innovation with new launches across markets and activated new engines of growth. We have also stepped up investment behind our brands to further strengthen their reach and relevance to consumers. Overall, despite a challenging external environment this year, we have delivered industry leading growth while putting in place building blocks for the future.”

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, and ready-to-cook offerings. 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 and Tata Sampann. 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. 10,000 cr with operations in India and International markets. For more information, please visit www.tataconsumer.com

Disclaimer:

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.