Tata Consumer Products Ltd share Price

Tata Consumer Products (TCPL) is one of the major FMCG companies present in tea, coffee & other beverages in India, UK, US, Canada & some other geographies. In India, it also has salt, pulses, spices & other foods products. Its subsidiary NourishCo is present in packaged water & other beverages. The company is in a JV with Starbucks, which has 268 stores in India.

• The company has 2000+ distribution directly reaching 1.3 million outlets in India. This will be increased to 1.5 million outlets by March 2023
• TCPL also increased its rural/ semi urban distributors 4x to 8000+ after the consolidation of consumer business

TCPL posted strong results with 74.3% earnings growth.

• Sales were up 4.5% YoY aided by foods business & international beverage
• EBITDA was at Rs 444.3 crore, up 48% YoY, with margins at 14.0%
• Consequent PAT was at Rs 239.1 crore (up 74.3% YoY)

Packaged foods company Tata Consumer Products announced Q1FY24 results:

• Revenue from operations for Q1FY24 at Rs 3,471 crore higher by 12% YoY
• Consolidated EBITDA for Q1FY24 at Rs 547 crore grew by 19% YoY
• Profit before exceptional items and tax at Rs 495 crore is higher by 23% YoY
• Group net profit for Q1FY24 at Rs 338 crore grew by 22% YoY

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, said, “We delivered strong topline growth of 12% along with earnings growth of 23% this quarter. Additionally, we were able to expand the EBITDA margin despite continuing investments in new businesses.

During Q1FY24 we saw positive results from the interventions put in place for the branded tea business, which grew volumes for the second consecutive quarter. Despite the pricing actions taken earlier to manage inflation, we continue to maintain volume growth momentum in Salt. We continued to accelerate innovation across categories with several new launches to expand our total addressable market. Our growth businesses (Tata Sampann, Tata Soulfull, and Nourish Co) continued their strong growth trajectory, they grew by 58% this quarter and accounted for 20% of the India-branded business. Tata Starbucks continued to deliver a strong performance along with store expansion.

Our innovation agenda fired on all cylinders with Innovation-to-Sales reaching 5% during Q1FY24. In our sales & distribution expansion, we are on track to achieving a total reach of 4 million outlets by September 2023 and we will continue to expand direct distribution in smaller towns. We continue to record strong growth momentum in alternative channels- modern trade and e-commerce.

Going forward, we will stay focused on driving profitable growth while making consistent progress in our transformation journey towards becoming a leading FMCG company.”

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