Tata Consumer Products records stellar growth in Q3, revenue up by 9%

Tata Consumer Products Limited (TCPL), a flagship entity in the global beverage and food market, reported a significant uptick in its financial performance for the quarter and nine months ending December 31, 2023. Demonstrating a solid growth trajectory, the consolidated revenue from operations saw a 9% increase for the quarter, reaching Rs 3,804 Crores, and an 11% rise for the nine-month period, totaling Rs 11,279 Crores. This financial uplift is attributed to the company’s dynamic operations and strategic market interventions, particularly in its India business, which recorded a 10% growth.

The consolidated EBITDA for the quarter stood at Rs 576 Crores, marking a remarkable 26% growth, while the nine-month EBITDA soared to Rs 1,692 Crores, up by 25%. Profit before exceptional items for the quarter escalated by 27% to Rs 513 Crores, and for the nine-month period, it increased by 29% to Rs 1,513 Crores. This impressive financial performance underscores TCPL’s effective brand investment strategies and strong operational efficiency.

TCPL’s India operations were a significant growth driver, with the Packaged Beverages business and Coffee segment witnessing notable revenue growths of 4% and 32%, respectively. The company’s focus on market leadership in e-commerce, innovative product launches, and premium Direct-to-Consumer (D2C) offerings under the ‘Sonnets by Tata Coffee‘ brand, have been pivotal in its success.

Tata Consumer Products Announces Robust Results for Q3 and Nine Months Ending December 2023

The India Foods business continued its double-digit growth momentum, with a 13% increase for the quarter. The value-added salt portfolio and Tata Sampann brand achieved robust growth, reinforcing TCPL’s premiumization agenda. The Ready-to-Drink (RTD) business also recorded strong revenue growth, contributing to the year-to-date growth figures.

Following regulatory approvals, the merger of Tata Coffee with Tata Consumer Products has become effective from January 1, 2024. TCPL’s strategic acquisitions of Capital Foods and Organic India are set to expand its market into adjacent high-growth, high-margin categories, enhancing its pantry platform and developing a Health & Wellness platform.

The International business segment reported an 11% revenue growth, with brands like teapigs and Good Earth outperforming category growth rates in the UK and USA. Tata Starbucks continued its expansion, adding 22 new stores and entering six new cities, bringing the total store count to 392 across 55 cities.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, highlighted the company’s strong operating performance, with strategic interventions in the tea and salt segments leading to volume-led growth. The Sales & Distribution buildout, expansion into rural areas, and momentum in alternate channels are key factors driving TCPL’s growth agenda. The acquisitions of Capital Foods and Organic India are expected to be gross margin accretive, with significant revenue and cost synergies anticipated in the medium term.