On October 31, 2023: Tata Consumer Products Limited (BSE, NSE: TATACONSUM) announced its Q2 2023-24 financial results, reporting several product innovations in Q2, with revenue up for the quarter and half the fiscal year. Continuing on the road to highs, Q2 posted an increase in Group Net Profit.
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- For Q2, Revenue from Operations was at ₹3,734, a rise of 11%.
- The consolidated EBITDA for Q2 stood at ₹569 Cr, a growth of 30%, with the consolidated EBITDA Margin in terms of Group Performance at 15.2%.
- The Group Net Profit (before exceptional items) for Q2 stood at ₹375 Cr, a rise of 24%.
Additional Read: Q2 Results Dashboard
Key Highlights – India Market
With innovations in its consumer products and healthy revenues, Tata Consumer Products Limited has recorded growth in Q2 for its Indian business market, as displayed by the following highlights:
- In Q2, the India Packaged Beverages business delivered 5% growth in revenue and 3% growth in volume.
- The company continues its rule over the market in the Tea segment via e-commerce avenues.
- In terms of its top products, coffee continued its robust performance, witnessing a revenue growth of 17% YoY.
- The wellness and health beverage portfolio saw key additions with new launches.
- The India Foods business delivered revenue growth of 16% and volume growth of 6%.
- The salt portfolio continues its value-added healthy momentum and registered double-digit revenue growth in Q2 FY 23-24.
- The company’s solar salt brand, Shudh, was introduced in additional markets in Q2.
- Tata Sampann has recorded a strong growth of 47% YoY in Q2. Digital campaigns continued to boost this portfolio during the quarter.
- The company’s RTD business, NourishCo, recorded a robust revenue growth of 25% in Q2, in spite of challenging weather conditions. This has brought YTD growth to 44%.
- Q2 witnessed the continuation of innovation and the innovation-to-sales ratio was recorded at 5% for the India business segment.
- The growth agenda has been boosted by e-commerce (growing by 33% for H1) and Modern Trade (growing by 13% for H1).
Additional Read: Tata Consumer Share Price
International Business Highlights
On the international stage, the company has seen growth. The highlights of the Q2 results for the international business are mentioned below:
- In Q2, the international business revenue has grown 13% (8% in constant currency terms).
- The rollout of the revamped Tata Tetley tea bag continued in the UK in Q2. The response of consumers has shown positivity.
- In the UK, the company has entered the breakfast cereal area with the launch of a millet-centric muesli brand “Joyful”, introduced in more than 430 Tesco supermarkets across the United Kingdom.
- In the Canadian market, Tetley continues to win over consumer tea demand, especially with regard to its specialty teas.
- In the USA, Tetley and teapigs continue to outpace growth rates in its tea category.
- In terms of Tata Starbucks, a healthy revenue growth of 14% was registered for Q2. 22 new stores were opened in Q2, with 2 penetration into 2 new cities. The concentration was the launch of highway stores in Q2 with the highest addition of these in any quarter so far. New store offerings were launched in Q2 – packaged sandwiches and overnight oats.
Novel Products, Innovative Launches
Q2 witnessed the introduction of new launches across its markets. Some key ones are mentioned below:
- The introduction of energy drinks (“Say Never”).
- The launch of new tea brands (Tata Tea Gold Vita Care, Tata Digest, Immuno Chai, etc)
- Tata Soulful Bites Ragi Bites Choco Sticks
- Tata Simply Better Cold Pressed Oils
- Tata Sampann Gulab Jamun Mix and Tata Sampann Walnuts and Seeds
- Tata Sampann Vermicelli
- Tata Joyful Cereal
- Tata Coffee Quick Filter Range of coffee (South Indian coffee-inspired)
Management Commentary
The MD and CEO of Tata Consumer Products Limited, Sunil D’Souza, had some insights on the results and these are shared below:
- The company is pleased to deliver another healthy quarter with a Revenue growth of 11% and EBITDA growth of 30%.
- The Indian tea business saw its third consecutive quarter of growth in terms of volume.
- The salt business has witnessed consistent revenue growth, extending into Q2.
- With a focus on innovation and new product launches spanning several categories, the company has been able to expand its addressable markets.
- Main growth businesses like Tata Sampann, NourishCo, etc. have boosted the company’s objectives of portfolio transformation. Tata Starbucks has also contributed to the company’s growth ambitions.
- New milestones in terms of Sales and Distribution were achieved in Q2 – extending the company’s entire reach to 3.8 million outlets at the end of Q2.
- The company strives to reach rural areas and smaller Indian towns in the future.
- Robust growth momentum is aimed at by the continued efforts at digitisation and e-commerce activities.
- The company wishes to achieve the status of a premium FMCG company, and progress along these lines is continual.
- Additionally, the company has achieved success in its efforts at sustainability, announcing targets to be met by FY26, aligned with long-term sustainability goals.
Additional Read: Tata Group Overview
Financial Results
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 | Change % |
| Revenue from Operations | 3,734 | 3,363 | 11% |
| EBITDA | 569 | 438 | 30% |
| Profit Before Tax | 505 | 370 | 36% |
| Profit After Tax | 359 | 355 | 1% |
| Group Net Profit (including joint ventures and associates) | 364 | 389 | (7)% |
About Tata Consumer Products Limited
Tata Consumer Products Limited is an Indian consumer products company and a significant part of the iconic Tata Group. It is headquartered in Mumbai. The company has the distinction of being the world’s second-largest producer and prominent distributor of tea and a prominent manufacturer of coffee.
Additional Read: Tata Technologies IPO
The company was formerly called Tata Global Beverages Limited (TGBL). Tata Consumer Products was established when the consumer products side of the business of another Tata Group company, Tata Chemicals, joined forces with Tata Global Beverages. This took place in 2020. Currently, the company is involved in the operations of the food and beverage industry, with revenue being generated from their domestic and international businesses. The brands that the company produces include Tata Tea, Tata Salt, Tetley, Good Earth Tea, Eight O’Clock Coffee, Tata Starbucks, and Tata Sampann. Tata Tea is the largest-selling tea brand in India. The biggest-selling tea brand in Canada is Tata Tetley and the second-largest-selling brand in the USA and the UK.
Source: https://www.tataconsumer.com/investors/investor-relations/results-and-presentation/analyst-presentation
