One of India’s biggest FMCG companies, Tata Consumer Products, announced its financial results for the first quarter of FY23 on 10th August 2022. The company reported its profit after tax (PAT) at Rs. 255.46 crore in Q1 FY23, up 37.97% YoY (year on year) from Rs. 185.15 crore in Q1 FY22.
Consolidated EBITDA of Tata Consumer Products stood at Rs 460 crores in Q1 FY23, up 14% YoY. Additionally, the revenue from operations of the company stood at Rs. 3326.83 crore in the quarter under review, increasing 10.58% YoY from Rs. 3008.46 crore in Q1 FY22.
During the quarter, with a correction in the tea prices, the India Packaged Beverages business recorded a 4% YoY revenue decline on an elevated base that had seen 24% YoY revenue growth in the same period last year. However, Tata Consumer Products continued to record market share gains in branded tea. Tata Tea Teaveda was restaged as a step towards simplification and consolidation of brands under the Tata Tea Premium Masterbrand.
Coffee volumes grew 43% YoY with a revenue growth of 73% YoY during the quarter with new stock keeping unit (SKU) launches and roll outs in new geographies. The India Foods business also registered 19% YoY revenue growth in Q1 FY23 on an elevated base that had seen 20% YoY growth in the same period last year.
The salt portfolio continued its momentum and recorded double digit growth during the quarter, despite a high base in Q1 FY22. The premium salt portfolio recorded 36% YoY growth during the quarter, continuing its strong trajectory in line with the company’s premiumisation agenda.
For the quarter ended 30th June 2022, the International Beverages business recorded a revenue growth of 9% YoY. Tetley continued to gain share in the everyday black and specialty segments in the UK. A new variant called the Tetley Gold Brew was launched to drive premiumisation. Additionally, Teapigs in the UK displayed strong growth, which was led by good performance in the out of home, exports, and grocery channels.
Tata Starbucks also recorded a revenue growth of 238% YoY for the quarter, albeit on a low base. This was led by normalised store operations with lower restrictions as the force of the covid-19 pandemic lessened during the quarter.
The earnings per share (EPS) of the company were reported at Rs. 2.77 in Q1 FY23, up from Rs. 2.01 in Q1 FY22. Ahead of the results, the Tata Consumer Products share closed in the green at Rs. 790 per share, up 0.16% from the previous day’s closing.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered double digit revenue growth and improved profitability for the company despite a challenging macro environment and inflation impact in some of our categories. We recorded market share gains in both our core categories of tea and salt in India. Our new engines of growth- NourishCo, Tata Sampann, Tata Soulfull and Tata Q are making good progress and expanding their market presence. We have significantly accelerated the pace of innovation with a number of new launches across categories aimed at expanding our portfolio and reaching new consumer segments. In terms of profitability, we delivered an EBITDA margin expansion YoY, despite severe inflationary pressures in the salt business and significantly higher A&P. Our transformation agenda continues to be on track. We have increased our reach substantially across channels while strengthening our sales & distribution infrastructure and our digital capabilities. We will continue to stay focused on driving growth and balancing margins in our quest to becoming a leading FMCG company.”