Tata Consumer’s Q4 PAT falls on one-time costs, revenue up 8.5%

Tata Consumer Products reported a 19.5 per cent fall in consolidated net profit in the March quarter due to one-time expenses, while revenue from operations rose 8.5 per cent driven mainly by 10 per cent growth in the India business, aided by international and non-branded businesses.

The company reported a net profit of ₹216.6 crore in Q4 of FY24 on revenue of ₹3,926.9 crore. The international business grew 5 per cent and non-branded business 4 per cent.

Exceptional items during the quarter were at ₹215.8 crore and this was due to costs associated with scheme of arrangement and acquisitions, asset write-downs and fair value loss on financial instruments. The net profit before exceptional items would be ₹427 crore, the company said.

• Also read: After ₹7,000-crore M&A deals, Tata Consumer hungry for more acquisitions

The Ebitda in the quarter rose 22 per cent to ₹631 crore.

In the full year net profit fell 4.4 per cent to ₹1,150.3 crore and revenue rose 10.3 per cent to ₹15,206 crore.

The company expects its recent acquisitions, Capital Foods and Organic India, to be significant value creators for the company, enabling expansion into high growth and high margin categories.

• Also read: Tata Consumer to expand range of innovative products

India business performance

The food business sales rose by a fifth in the quarter, driven by its premiumisation strategy. The Tata Sampann portfolio reported 42 per cent growth.

“Our premiumisation agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio,” said Sunil D’Souza, Managing Director and CEO.

In FY24, premium and sub-premium segments outperformed the overall business and accounted for over two thirds of India tea revenue. Gold, Premium and Tetley green franchises delivered strong results. The value-added salt portfolio continued its strong momentum and grew 34 per cent, accounting for 9 per cent of the overall salt business.

Coffee continued its robust performance with a revenue growth of 45 per cent in the quarter, though the packaged beverages business delivered a tepid 2 per cent revenue growth.

Nourishco recorded revenue growth of 13 per cent during the quarter, bringing FY24 growth to 33 per cent.

Sales and distribution infrastructure was strengthened, expanding total reach to 4 million outlets at the end of the year. The reach was further deepened through the addition of 1300 distributors in FY24, primarily in semi-urban markets.

E-commerce channel grew 35 per cent accounting for 11 per cent of India business and modern trade recorded 9 per cent growth in FY24.

The company added 29 new Tata Starbucks outlets in the quarter taking the total to 421 and entered six new cities.

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