Tata Consumer Products Limited (TCPL) has reported a robust start to the fiscal year, with consolidated revenue growing 10% year-on-year to Rs 4,779.00 crores in the first quarter. The company's strategic focus on broad-based FMCG growth is yielding results, as it continues to expand its product portfolio and distribution channels.

Strong Performance Across Segments

The company's growth was driven by solid performance across its key business segments:

• India Business: Recorded an 11% growth, with double-digit growth in both tea and salt categories.
• International Business: Achieved a 5% constant currency revenue growth.
• Non-Branded Business: Grew by 6% in constant currency terms.

EBITDA and Profit

Despite the topline growth, TCPL faced some headwinds:

• Consolidated EBITDA declined by 8% to Rs 615.00 crores, primarily due to higher tea costs in India and coffee price corrections in the non-branded segment.
• The EBITDA margin stood at 12.9%, down 250 basis points year-on-year.
• Group Consolidated Net Profit, however, increased by 15% to Rs 332.00 crores, benefiting from improved performance of associates and joint ventures.

Strategic Initiatives Driving Growth

Tata Consumer Products is executing multiple strategic initiatives to fuel its FMCG growth:

1. Premiumization: The company is focusing on premium product offerings across categories.
2. Omnichannel Expansion: TCPL reported strong growth in e-commerce (61% YoY) and modern trade (21% YoY) channels.
3. Innovation-Led Launches: New product introductions are driving growth across segments.
4. High-Growth Verticals: The company is scaling up businesses like Sampann, ready-to-drink beverages, Organic India, and international coffee operations.

Category Performance

• Tata Sampann: Continued its strong momentum with a 27% year-on-year growth in Q1.
• Ready-to-Drink (RTD): Despite unfavorable weather conditions, the RTD business recorded positive volume growth.
• Value-Added Salts: Grew by an impressive 31% during the quarter.
• Coffee: The US coffee business registered strong growth, with Eight O'Clock coffee gaining market share.

Expansion and Innovation

Tata Consumer Products continues to expand its reach and innovate across categories:

• Tata Starbucks added 6 new stores, bringing the total to 485 across 80 cities in India.
• Tetley introduced new green tea variants enriched with L-Carnitine and Biotin, catering to health-conscious consumers.
• The company launched 8 new products in the RTD segment, exploring new formats and occasions.

Management Commentary

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, stated, "We delivered a steady topline growth of 10% in Q1, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion."

Outlook

As Tata Consumer Products continues its transformation into a comprehensive FMCG company, it remains focused on:

• Strengthening its core categories of tea and salt
• Accelerating growth in emerging businesses
• Expanding distribution and improving execution capabilities
• Driving innovation across its product portfolio

With its strategic initiatives and focus on premiumization and channel expansion, Tata Consumer Products is well-positioned to capitalize on the growing FMCG market in India and key international markets.

Tata Consumer Products Limited (TCPL) has announced its financial results for the first quarter, showcasing steady growth and strategic initiatives across its portfolio.

Revenue Growth and Performance Highlights

TCPL reported a consolidated revenue of Rs 4,779.00 crores for Q1, marking a 10% increase compared to the same period last year. The growth was primarily driven by:

• 11% growth in the India Business
• 6% growth in the International Business (in constant currency terms)
• 6% growth in the Non-Branded Business

The company's Group Consolidated Net Profit rose by 15% to Rs 332.00 crores, benefiting from improved performance of Associates and Joint Ventures.

Segment-wise Performance

India Business

The India business demonstrated strong momentum:

• India Packaged Beverages revenue grew by 12%
• Tata Sampann portfolio continued its strong performance, growing by 27%
• Value-added salt portfolio grew by 31%

International Business

The International business maintained its growth trajectory:

• 5% constant currency revenue growth
• Strong coffee performance in the USA, with Eight O'Clock coffee gaining market share

Non-Branded Business

The Non-Branded segment saw a 6% growth in constant currency terms. However, profits were impacted by reversals of fair value gains from the previous year due to easing coffee terminal prices.

Strategic Initiatives and Innovation

TCPL continued to focus on innovation and market expansion:

• Launched new products across categories, including Tetley Slim Care and Beauty Care green teas
• Strengthened omnichannel capabilities, with e-commerce growing 61% and modern trade recording 21% growth
• Expanded food services and pharmacy distribution to fuel growth

Tata Starbucks

The Tata Starbucks joint venture continued its expansion:

• Added 6 new stores during the quarter
• Total store count reached 485 across 80 cities
• Introduced new offerings like Cold Brew and 'Refreshers' to drive growth

Management Commentary

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, stated, "We delivered a steady topline growth of 10% in Q1, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. Tata Sampann continued its strong trajectory, with new launches & innovations performing well."

Outlook

While the company faced some challenges, including tea cost inflation in India and coffee price corrections in the non-branded business, TCPL remains focused on delivering on its growth aspirations through ramping up advertising, innovation, and distribution expansion.

The company's continued focus on premiumization, omnichannel expansion, and innovation-led product launches positions it well for future growth in the competitive FMCG landscape.