India Beverages Volume Growth
3%
+3% YoY
Tea volumes grew 3% YoY, marking third consecutive quarter of volume-led growth.
TATACONSUM
Diversified
31 Oct 2023
TATA CONSUMER PRODUCTS LIMITED — Q2 FY24
Tata Consumer delivered a strong Q2 with 11% revenue growth to INR 3,734 crore and 30% EBITDA growth, with margin expansion of 220 bps driven by international turnaround and non-branded business.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Tata Consumer delivered a strong Q2 with 11% revenue growth to INR 3,734 crore and 30% EBITDA growth, with margin expansion of 220 bps driven by international turnaround and non-branded business. India beverages grew 8% (tea volumes +3%), India foods +16% (volumes +6%), and the growth portfolio (NourishCo, Sampann, Soulfull, SmartFoodz) surged 39%, now contributing 18% of India business. International EBIT jumped 60% led by UK restructuring. Management remains cautiously optimistic on India demand but flagged US coffee softness and rural stress. Key risk: sustained competitive intensity in US coffee and potential tea share erosion if commodity prices remain volatile.
टाटा कंज्यूमर ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कमाई 11% बढ़कर 3,734 करोड़ रुपये हो गई। मुनाफा 30% बढ़ा, और मार्जिन (कमाई का अनुपात) में 2.2% का सुधार हुआ। भारत में पेय पदार्थों की बिक्री 8% बढ़ी, जिसमें चाय की बिक्री 3% बढ़ी। खाद्य पदार्थों की बिक्री 16% बढ़ी। नए उत्पादों (जैसे नूरिशको, संपन्न, सोलफुल) की बिक्री 39% बढ़ी, जो अब भारत के कारोबार का 18% है। अंतरराष्ट्रीय कारोबार में मुनाफा 60% बढ़ा, खासकर ब्रिटेन में बदलावों से। प्रबंधन भारत में मांग को लेकर सावधानी से आशावादी है, लेकिन अमेरिकी कॉफी बाजार में कमजोरी और ग्रामीण इलाकों में मुश्किलों को लेकर सतर्क है। मुख्य जोखिम: अमेरिकी कॉफी में कड़ी प्रतिस्पर्धा और कच्चे माल की कीमतों में उतार-चढ़ाव से चाय बाजार में हिस्सेदारी कम हो सकती है।
Key Numbers
NourishCo Revenue Growth
25%
+25% YoY
NourishCo grew 25% in Q2, with H1 up 44%, on track for INR 1,000 crore aspirational target.
Tata Sampann Revenue Growth
47%
+47% YoY
Sampann grew 47% in Q2, above the long-term aspiration of 30% growth.
International Tea Volume Growth
15%
+15% YoY
International tea volumes grew 15%, with UK EBIT improving significantly from restructuring.
Management Guidance
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.
Management guidance revenueTata Sampann long-term growth of 30%
Management reiterated the long-term aspiration of 30% growth for Tata Sampann, though Q2 exceeded this at 47%.
Management guidance growthInnovation contribution of 5% for full year
Innovation contributed 5.5% in Q2, and management guided for a full-year innovation contribution of 5%.
Management guidance growthMerger 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.
Management guidance otherKey Risks
US coffee softness and promotional intensity
US coffee revenue declined due to falling coffee prices and increased promotional activity; corrective actions taken late in Q2 may take time to reflect.
medium · management_commentaryRural demand stress and erratic monsoons
Management noted rural stress from inflation and erratic monsoons, impacting volume growth in certain categories.
medium · management_commentaryTea market share loss on MAT basis
Tea market share declined 95 bps on a MAT basis, though management highlighted stability on a quarter-on-quarter basis.
medium · data_observationNourishCo growth deceleration due to weather
NourishCo growth slowed to 25% in Q2 from 60% in Q1, attributed to unseasonal rains; analyst questioned sustainability of the aspirational target.
low · analyst_questionNotable Quotes
We delivered a strong quarter with 11% top line growth, 10% in constant currency.
International business came to the party big time this time. 13% revenue growth, 8% in constant currency, with EBIT growth of 60%.
We do expect that now that we've got stable pricing and we've built out more infrastructure for distribution, we continue to drive volumes.
Frequently Asked Questions
What was TATA CONSUMER PRODUCTS's revenue in Q2 FY24?
TATA CONSUMER PRODUCTS reported revenue of ₹3,734 Cr in Q2 FY24, representing a +11% change compared to the same quarter last year.
What guidance did TATA CONSUMER PRODUCTS management give for FY25?
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. 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%. Innovation contribution of 5% for full year: Innovation contributed 5.5% in Q2, and management guided for a full-year innovation contribution of 5%. 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.
What are the key risks for TATA CONSUMER PRODUCTS in FY25?
Key risks include US coffee softness and promotional intensity — US coffee revenue declined due to falling coffee prices and increased promotional activity; corrective actions taken late in Q2 may take time to reflect.; Rural demand stress and erratic monsoons — Management noted rural stress from inflation and erratic monsoons, impacting volume growth in certain categories.; Tea market share loss on MAT basis — Tea market share declined 95 bps on a MAT basis, though management highlighted stability on a quarter-on-quarter basis.; NourishCo growth deceleration due to weather — NourishCo growth slowed to 25% in Q2 from 60% in Q1, attributed to unseasonal rains; analyst questioned sustainability of the aspirational target..
Did TATA CONSUMER PRODUCTS meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full TATA CONSUMER PRODUCTS Q2 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.