Results for the Quarter & Half Year ended 30th September 2020
Revenue from Operations is up 19% for the quarter; and up 16% for the first half of the year.
EBITDA grew by 26% during the quarter; and grew by 32% during the first half of the year.
Profit Before Exceptional Items and Tax is up 31% for the quarter; and up 37% for the first half of the year.
Group Net Profit is up 31% for the quarter; and up 55% for the first half of the year.
Tata Consumer Products Ltd. today announced its results for the quarter ended September 2020.
For the quarter, Revenue from Operations is higher by 19% (16% in constant currency), as compared to corresponding quarter of the previous year, primarily led by strong growth in India business. EBITDA at Rs 402 Crores and Profit Before Exceptional Items and tax at Rs 345 Crores is higher by 26% and 31% respectively, as compared to corresponding quarter of the previous year, despite materially higher tea costs in India. Group Consolidated Net Profit is higher by 31%.
During the quarter, overall, India Business grew 25%. Within that, India Packaged Beverages business grew 29%, driven by volume and pricing and; India Foods business grew 13%, led by strong growth in both the Salt and Pulses portfolios. There was also a sequential improvement in NourishCo’s performance, albeit the category continues to be impacted by a decrease in Out of Home consumption. Branded International Beverage business grew 11%, partly benefitting from favourable currency movement.
Some of the key Business updates are:
- For the quarter, the India Packaged Beverages business clocked a 12% volume growth and 29% value growth, driven by higher volumes and price realization, further accelerating from the previous quarter and driving market share gains.
- Tata Tea Premium won Gold in 6 categories in the ‘ET BE Shark Awards 2020’ along with ‘Brand of the Year 2020.’
- For the quarter, the India Foods business realised a 6% volume growth and 13% value growth. The salt portfolio recorded steady growth and market share gains. Pulses continued to deliver excellent growth.
- Tata Salt was awarded the ‘Most Trusted Brand’ for the third consecutive year in the WPP & Kantar’s BrandZ Top 75 Most Valuable Indian Brand Ranking.
- Tata Sampann Spices launched a new integrated marketing campaign #Spiceupyourhealth, on the health benefits of natural oils in spices.
- As part of the integration of the foods and beverages businesses in India, a re-designed Sales & Distribution structure is being put in place. Additionally, end to end digitization across supply chain and distribution partners is underway. The integration is progressing ahead of plan and these initiatives will result in broad based revenue and cost synergies in the near term.
- During the quarter, the International Beverages business saw normalization in demand following pantry stocking during the previous quarter.
- Tetley launched its new Herbals range in the UK to strengthen its position in the fruit & herbal category.
- Good Earth Tea Sensorial blends, a premium range of tea bags in eco-friendly packaging that was launched in the USA is seeing good traction.
- Tetley in Canada recorded strong growth in specialty tea, it is now the #1 brand by value in the specialty tea segment also.
- Tata Starbucks has registered a significant recovery month on month. 86% of its stores have now re-opened for business.
- It launched a dedicated store for Starbucks merchandise on Flipkart.
- It opened 11 new stores and added one new city Lucknow, during the quarter; leading to a total store count of 196 as of quarter close.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We posted all round revenue and profit growth during the quarter driven by accelerated momentum in our India business. The integration of our food and beverage business in India is progressing ahead of plan and we should start to see synergy benefits in the near term. The redesign of our S&D system is already yielding results with an expansion in outlet reach as well as significant increase in E-commerce contribution.
What I am particularly pleased about is the market share gains we have made both in tea and salt during the quarter, especially in the face of a challenging operating environment and while maintaining the momentum in our integration journey, thanks to our dedicated employees.
Strengthening our core business, driving innovation and digitization, unlocking synergies from the merger, creating a future ready organization and caring for the society will continue to be focus areas for us.”
For more information, please refer to the full results by clicking here
About Tata Consumer Products Limited
Tata Consumer Products Limited is a F&B focused consumer products company. 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 and Himalayan Natural Mineral Water. 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 and employs 2,200+ people in its branded business workforce. 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.