Tata Consumer Products Ltd. H1FY25 & Q2FY25 Results
Tata Consumer Products reported strong financial results for H1FY25 & Q2FY25. Key highlights include double-digit revenue growth and significant improvements in international business profitability.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
Q2FY25 Financial Performance
Revenue Growth
Consolidated revenue grew by 13%, reaching ₹4,214 crore. Growth in constant currency terms was 12%.
India Business
India business saw a 15% growth. Organic growth, excluding acquisitions, was 2%.
International & Non-Branded
International business achieved 5% constant currency growth. The non-branded business grew by 19%.
H1FY25 Financial Performance
1
EBITDA
Consolidated EBITDA reached ₹629 crore, a year-on-year increase of 11%. EBITDA margin stood at 14.9%.
2
India EBITDA
India business EBITDA declined by 4% YoY, with margin contracting 250 bps. Organic EBITDA declined by 23%.
3
International EBITDA
International business EBITDA increased significantly by 40% YoY in constant currency.
Q2FY25 Segment Performance
1
India Beverages
Grew by 3%, with organic growth at -4%. Tea volumes experienced a decline of 4% YoY.
2
India Foods
Witnessed a substantial increase in revenue at 28%, with organic growth of 9%.
3
International Business
Recorded a 7% revenue growth (5% in constant currency), with a 53% YoY surge in profitability.
Growth & Acquisitions
Organic Growth
Growth businesses saw a 15% organic growth. Capital Foods and Organic India, recent acquisitions, showed strong revenue and EBITDA expansion.
EBITDA Margin & Market Share
Consolidated EBITDA grew 11%. Salt market share strengthened, while India tea saw a marginal value share loss.
Strategic Initiatives
New Food Services
Tata Consumer Products is incubating new food services channels, with pilots starting in September.
Pharma Channels
The company is also expanding into pharma channels, testing new avenues for reaching consumers.
Merger & Simplification
NourishCo, Tata Soulfull, and Tata Smart Foodz
Subsidiaries in India, NourishCo, Tata Soulfull, and Tata Smart Foodz, have successfully merged. This move simplifies operations and synergizes the business.
Tata Starbucks Expansion
Tata Starbucks expanded its presence to 457 stores across 70 cities, becoming the largest cafe operator in India. This signifies substantial growth in the cafe segment.