Tata Consumer Products Q3 Results FY2023, PAT at Rs. 364 crores

On 2nd February, Tata Consumer Products announced its results for the third quarter of FY2023.

Key Highlights:

- During the quarter, the company reported revenue from operations of Rs. 3475 crores, which increased by 8% YoY.
- For the quarter, EBITDA was reported at Rs. 458 crores
- Profit After Tax stood at Rs. 364 crores

Business Highlights:

- For the quarter, the India Packaged Beverages business recorded 9% revenue decline led by pricing corrections and demand slowdown and late onset of winter in our key markets of North and East. Coffee continued its strong performance with a revenue growth of 34% YTD.
- Tata Tea Gold Care, Chakra Gold Care, and Tata Tea Gold Darjeeling continued to see strong traction
- For the quarter, the India Foods business registered 29% revenue growth and 4% volume growth.
- The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter. The salt portfolio also continued to record market share gains
- The Tata Sampann portfolio recorded strong double-digit growth led by broad based performance across staples and dry fruits.
- Tata Soulfull continued its strong growth trajectory during the quarter. It launched an enhanced cream version of its popular ragi bites in three variants.
- Tata Soulfull continued its strong growth trajectory during the quarter. It launched an enhanced cream version of its popular ragi bites in three variants.
- Alternate channels continue to fuel our growth and innovation agenda. Modern Trade channel grew 17%, contributing to 14.8% of India business sales. The Ecommerce channel grew 34%, contributing to 8.2% of India business sales. Approximately 11% of E-commerce revenue came from NPD (New Product Development) during the quarter. 
- For the quarter, the International Beverages business revenue grew 4%
- In the UK, premiumizing black tea, and expanding into new segments in non black tea category is focused, and have put in place a clear strategy to grow our business.  
- In the USA, Tata Raasa (a Ready to Eat and Ready to Cook range developed specifically for international markets) was launched, within select ethnic channels during the quarter.
- In the branded coffee segment, Eight O’ Clock (EOC) coffee continued to hold share with K cups growing ahead of the category.
- Teapigs continued to be the fastest-growing brand in specialty tea in the USA.
- In Canada, Tetley kicked off an integrated campaign ‘Live in the Moment’ to support the earlier launch of Tetley Live teas- a range of non-black specialty teas.
- Tata Starbucks recorded strong revenue growth of 42% for the quarter, led by a revival in out of home consumption and strong store addition. Launched the first Starbucks Reserve store in India at its Flagship Mumbai location. Opened 11 new stores during Q3, and entered 2 new cities. This brought the total number of stores to 311 across 38 cities. 

Commenting on the results, Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said: “We delivered strong earnings growth this quarter while balancing revenue growth and margins in an extremely challenging macroeconomic environment.

While the branded tea business in India has been impacted by demand headwinds in some of our key markets, we are putting in place measures to address some of these challenges. In our other core business of salt, we have continued to gain market share despite pricing actions taken to mitigate input cost inflation. We continued to maintain momentum on innovation with a number of new launches across our Beverages and Foods categories. Our new engines of growth- Tata Sampann, Tata Soulfull and NourishCo have continued their strong growth trajectory and collectively account for 13% of our India business now. Tata Starbucks has delivered yet another strong quarter with the addition of 47 stores across 12 cities so far this fiscal.

Our transformation journey to becoming a leading FMCG company is progressing well. We continue to expand & strengthen our reach in GT and E-commerce and modern trade channels continue to fuel our growth and innovation agenda. We have enhanced our R&D capability and infrastructure to better support our innovation agenda across categories. Going forward, we will continue to stay focused on driving consistent and profitable growth for the business.”