Tata Consumer Products Ltd. today announced its results for the quarter and year ended 31st March 2024. For the quarter, Revenue from operations grew by 9% (8% in constant currency) as compared to corresponding quarter of the previous year, with strong performance in India business, which grew 10%. Profit before exceptional items and tax at Rs 509 Crores is higher by12%. Group Net Profit before exceptional items at Rs 427 Crores is up 46% driven by strong operating performance and one-time tax credits during the quarter.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered good topline growth of 10% in FY24, but importantly an EBITDA growth of 24% and significant expansion in EBITDA margin. During the year, we recorded growth in India tea and salt businesses. Our premiumization 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.”
Tata Salt also launched a new campaign celebrating its strong heritage with a twist in its iconic jingle ‘Namak ho Tata ka, Tata namak’, earlier this year.
He added, “Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong growth trajectory with a revenue growth of 40% in FY 24. Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities. We also delivered strong performance in our International markets, along with significant margin improvement. The UK business saw its EBITDA margin touch historic highs led by restructuring initiatives taken during the year.”
D’Souza highlighted, in India, Tata Consumer Products solidified its sales and distribution infrastructure. Now total reach has expanded to 4 million outlets as of March ’24. He said, “We implemented split routes in all 1 million + population towns and have seen significant improvement in assortment and growth. We are strengthening our Rurban focus and are deepening reach into rural areas. Alternate channels (modern trade and e-commerce) recorded significant momentum and continue to be strong growth drivers.”
Alternate channels continued to fuel our growth and innovation agenda Ecommerce channel grew 35% and Modern Trade recorded 9% growth in FY24. E- commerce accounted for 11% of India business in FY24, up from 9% last year.
Following the recent acquisition of Capital Foods (owner of brands Ching’s Secret and Smith & Jones), both front end and back-end integration has been completed on an accelerated timeline, within 60 days of the acquisition, the company stated, adding that it is leveraging Tata Consumer’s GTM to deliver growth across channels while delivering on cost synergies.
On Tata Starbucks, the company added 29 net new stores during the quarter and entered 6 new cities. This year saw the highest store addition at 95 stores. This brought the total number of stores to 421 across 61 cities. The My Starbucks Rewards loyalty program crossed 3 million patrons, a 30% growth YoY. Starbucks and renowned designer Manish Malhotra also launched an exclusive line of lifestyle drinkware.