Tata Consumer Products Ltd on Wednesday released its fiscal fourth quarter earnings report with profit at Rs 344.85 crore, posting a growth of 59.19 per cent in comparison to Rs 216.63 crore recorded during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 4608.22 crore, up 17.35 per cent as against Rs 3926.94 crore reported during the fourth quarter of previous financial year. The company EBIT stood at Rs 620.8 crore.
According to a CNBC TV18 poll, Tata Consumer was expected to post Q4 profit at Rs 305 crore and revenue for the quarter in review was estimated at Rs 4575 crore.
The company board also recommended a dividend of Rs 8.25 per equity share of Re 1 each (825 per cent) for FY 2024-25. In a regulatory filing, the company said, “The Dividend, if approved by the Shareholders at the ensuing 62nd Annual General Meeting, will be paid/dispatched (subject to deduction of tax at source) on or after June 21, 2025.
Q4 performance across businesses
Tata Consumer recorded a revenue of Rs 4130.40 crore for its branded business, wherein India business posted Rs 2936.72 crore and international contributed to Rs 1193.68 crore share. Meanwhile, the non-branded business posted Q4 revenue of Rs 500.55 crore.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, said, “We ended the year with a strong quarter, accelerating the momentum further. We delivered a topline growth of 17 per cent during the quarter, bringing FY25 growth to 16 per cent. The growth was broad based across India and the International business in line with the earlier trend. During the year, we recorded growth in our core businesses of India tea and salt in addition to driving strong growth in Tata Sampann and Tata Soulfull. While the RTD business was impacted in the earlier part of the year, we have seen a strong rebound as we exit the year. Our recent acquisitions– Capital Foods and Organic India performed well, and we are accelerating growth momentum through innovation and expansion into new channels of Food Services and Pharma.”
India business: The beverages vertical of the FMCG firm saw robust growth across tea, coffee and RTD. For the quarter, India Beverages business revenue grew 9 per cent (excluding Organic India). The RTD (Ready to Drink) business delivered a growth of 10 per cent, driven by a strong volume growth of 17 per cent. Foods Business reported a strong performance across brands. For the quarter, India Foods business revenue grew 27 per cent (+17 per cent excluding Capital Foods). Salt revenue grew 13 per cent, with value-added salt portfolio growing 31 per cent during the quarter. The company said that Tata Sampann portfolio continued its strong momentum and grew 30 per cent for the quarter, bringing FY25 growth to 29 per cent. Tata Soulfull had a strong year with 32 per cent growth.
International business: For the quarter, the International business revenue grew 5 per cent with FY25 growth at 7 per cent (excluding international business of Capital Foods and Organic India). Enhanced distribution and routes to consumers have expanded the brand portfolio reach across markets. Integration of Capital Foods and Organic India’s international operations have opened up further opportunities for growth outside the core beverages business.
Tata Starbucks: In line with store addition plans, the company added 6 net new stores during the quarter and entered 6 new cities. 58 net new stores were added in FY25, taking the total number of stores to 479 across 80 cities. The company achieved the milestone of opening 50 stores in Bengaluru and launched the city’s first drive- thru store.
“Importantly, we delivered strong margin expansion, in line with our guidance. In India, we continued to strengthen our sales & distribution infrastructure and completed rollout of a next gen Go-to-Market platform. Channels of the future i.e. Ecommerce and Modern trade continue to fuel growth momentum. We launched 41 new products during the year and our innovation to sales ratio was 5.2 per cent. Overall, despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward,” Sunil D’Souza added.