Tata Consumer Products Q2 PAT rises 4% YoY to Rs 268 cr

The FMCG company reported a 4% increase in consolidated net profit to Rs 268 crore in Q2 FY22 from Rs 257 crore posted in Q2 FY21.

For the quarter ended Q2 FY22, revenue from operations stood at Rs 3,033 crore, rising 9% year on year on reported basis and growing 11% on a like to like basis mainly driven by growth of 14% in India Beverages and 23% growth in India Foods business. International business revenues growth, excluding exited businesses, was flat.

Profit before exceptional items and tax stood at Rs 364 crore, higher by 5% on account of improved gross margin partly offset by higher spends behind brands. Consolidated EBITDA grew by 5% to Rs 420 crore in Q2 FY22 over Q2 FY21.

For the quarter, the India Packaged Beverages business recorded a 10% revenue growth, on an elevated base last year. In addition to recording market share gains in branded tea, the continued to strengthen leadership position in e-commerce.

Tata Salt accelerated its market share gains and the premium salts portfolio continued its momentum in line with our premiumisation agenda. Tata Sampann also recorded strong growth, despite a high base last year.

Tata Starbucks recorded revenue growth of 128% in Q2 on a relatively low base of last year that was impacted by reduced mobility. Revenue grew 23% when indexed to the same period in FY20. The Tata Group company said revenue has been on an upward trajectory each month since the opening up post the second wave of Covid in India. The company also opened 14 new stores during Q2 and entered one new city- Jaipur.

During the quarter, the International Beverages business revenue growth was flat in underlying terms (like for like, adjusted for foodservice business exits last year), cycling an elevated base driven by increased in home consumption of tea and coffee last year. Tetley continued to grow share in the fruit & herbal category in the UK, with its Super Teas range. Eight O' Clock Coffee's 32 count K-cups and the CafArriba innovations continued to do well in the USA

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products said We delivered another quarter of double-digit revenue growth despite a high base last year. Our India business performed well, both our Beverages and Foods businesses recorded strong revenue growth with both tea and salt seeing market share gains. We continue to expand our distribution reach across channels while investing behind our brands. Innovation remains a focus area and we will further accelerate its pace as we move forward. Going forward, we will stay focused on driving growth in our core businesses while adding new levers of growth. While the worst of tea inflation seems to be behind us, we are now seeing inflationary trends in packaging and freight costs. We will address these by further strengthening operating efficiencies and driving net revenue management. We will continue to progress our transformation agenda while delivering profitable and sustainable growth.

Shares of Tata Consumer Products ended 2.44% lower at Rs 795.60 on Friday.

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.

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