Tata Consumer Products Ltd (TCPL) reported a decline of 26.6 per cent in Group consolidated net profit at Rs 212.26 crore in the fourth quarter ended March 2024, compared to Rs 289.56 crore in the same period last fiscal, according to a BSE filing.
However, the company’s total income increased to Rs 3,965.39 crore in Q4 FY24 from Rs 3,674.03 crore in Q4 FY23.
TCPL’s total expenses rose to Rs 3455.93 crore in Q4 FY24 compared to Rs 3217.58 crore in Q4 FY23.
Sunil D’Souza, managing director and CEO of Tata Consumer Products, stated, “We achieved a good topline growth of 10 per cent in FY24, along with EBITDA growth of 24 per cent and significant expansion in EBITDA margin.”
The company witnessed growth in its India tea and salt businesses. D’Souza highlighted the progress of the premium portfolio in both tea and salt, with strong growth contributing to an increasing share of the overall portfolio. Growth businesses like Tata Sampann, RTD, Tata Soulfull, and Tata SmartFoodz showed a revenue growth of 40 per cent in FY24.
Tata Starbucks expanded its store footprint to 61 cities. D’Souza noted strong international performance with significant margin improvement. The UK business achieved historic highs in EBITDA margin due to restructuring initiatives.
In India, TCPL enhanced its sales and distribution infrastructure, reaching 4 million outlets as of March ’24. It implemented split routes in all 1 million plus population towns, leading to improvement in assortment and growth. The company is focusing on rural areas and witnessing momentum in alternate channels like modern trade and e-commerce.
TCPL acquired 75 per cent equity shares of Capital Foods Private Limited (CFPL) in February 2024, and entered into a share purchase agreement (SPA) with Fabindia Limited for the acquisition of up to 100 per cent stake of Organic India Private Limited (OIPL), completing the acquisition of 99.99 per cent equity shareholding on 16 April 2024, at a purchase consideration of Rs 1707.99 crore, subject to financials adjustment of OIPL.
