TATA CONSUMER PRODUCTS FY24 Annual Earnings Summary
3 quarters covered · ₹11,461 Cr revenue · ₹359 Cr PAT · 5.1% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
The U.S. coffee category is under demand pressure, and coffee prices remain volatile, impacting the branded coffee business.
Q2 FY24 · mediumUS coffee revenue declined due to falling coffee prices and increased promotional activity; corrective actions taken late in Q2 may take time to reflect.
Q2 FY24 · mediumManagement noted rural stress from inflation and erratic monsoons, impacting volume growth in certain categories.
Q2 FY24 · mediumTea market share declined 95 bps on a MAT basis, though management highlighted stability on a quarter-on-quarter basis.
Q3 FY24 · mediumAnalyst raised concern about overlapping brands (e.g., Sonnets vs Sampann, Himalayan vs Sonnets honey) potentially causing confusion and bandwidth drag.
Q3 FY24 · mediumWhile integration is progressing, there could be hiccups in distributor transition and inventory cleanup for Capital Foods and Organic India.
Q4 FY24 · mediumRising Robusta and Arabica prices could pressure US coffee margins if not passed through quickly. Management claims agility but risk remains.
Q4 FY24 · mediumNourishCo missed its INR 900-1000 crore guidance, ending at INR 825 crore, partly due to delayed summer. Size may become a growth constraint.
Q4 FY24 · mediumManagement disputes Nielsen data showing 7% industry growth, claiming they haven't lost share. If competitive data confirms loss, tea volumes could remain soft.
Q2 FY24 · lowNourishCo growth slowed to 25% in Q2 from 60% in Q1, attributed to unseasonal rains; analyst questioned sustainability of the aspirational target.
Q4 FY24 · lowSimultaneous integration of Capital Foods and Organic India within 100 days each could strain resources and execution.
What changed through the year
Q2 FY24 · NourishCo aspirational target of INR 1,000 crore for FY24
Management reaffirmed the aspirational target of INR 1,000 crore revenue for NourishCo in FY24, despite weather headwinds.
Q2 FY24 · Tata Sampann long-term growth of 30%
Management reiterated the long-term aspiration of 30% growth for Tata Sampann, though Q2 exceeded this at 47%.
Q2 FY24 · Innovation contribution of 5% for full year
Innovation contributed 5.5% in Q2, and management guided for a full-year innovation contribution of 5%.
Q2 FY24 · Merger of Tata Coffee to complete in FY24
Management expects to complete the merger of Tata Coffee business within the current financial year, pending NCLT approvals.
Q3 FY24 · NourishCo to achieve INR 900-1,000 crore revenue in FY24
Management remains confident of delivering INR 900-1,000 crore for NourishCo in FY24, despite Q3 being seasonally weak.
Q3 FY24 · Growth businesses contribution to reach 30% growing at 30%
With the addition of Capital Foods and Organic India, management targets growth businesses to contribute 30% of India business, growing at 30%.
Q3 FY24 · Integration of Capital Foods and Organic India within 100 days
Capital Foods front-end integration substantially complete; Organic India expected to close in 45-60 days, with full integration within 100 days.
Q3 FY24 · International margins to be accretive to India business
Management expects international business margins to improve and become accretive to overall margins, with U.S. showing progress in 6-12 months.
Q4 FY24 · Growth businesses to be 30% of India portfolio growing at 30%
With Capital Foods and Organic India, growth businesses (NourishCo, Soulfull, etc.) are expected to account for 30% of India revenue and grow at 30%.
Q4 FY24 · Capital Foods integration in 100 days
Capital Foods acquisition closed Feb 1, integration targeted for completion by end of April (100 days). 95% of distributors already billing.
Q4 FY24 · Organic India integration in 100 days
Organic India acquisition closed April 16, integration targeted for completion in 100 days.
Q4 FY24 · Rights issue to conclude by early Q2 FY25
The rights issue process is on track and expected to conclude by early Q2 FY25.