Tata Consumer Products fell 0.96% to Rs 359.35 after consolidated group net loss stood at Rs 122 crore in Q4 March 2020 as compared to a net profit of Rs 36 crore in Q4 March 2019.
The company reported exceptional loss of Rs 264 crore during the quarter. Higher exceptional items mainly includes costs related to merger of India foods business and non-cash impairment loss on goodwill relating to the business in Australia and tea business in the US. The accounting impairment has been recognised due to a combination of factors like COVID related impact on specific out of home business segments, changes to discount rates due to market conditions and revision in business plan sensitivities.
Consolidated revenues from operations grew 35% to Rs 2,405 crore in Q4 March 2020 over Rs 1,775 crore in Q4 March 2019. The profit before exceptional items and tax during the quarter stood at Rs 248 crore, registering a jump of 54% year-on-year (Y-o-Y). EBITDA jumped 77% to Rs 312 crore during the period under review.
On a consolidated basis, group net profit rose 1% to Rs 460 crore on 33% increase in revenue from operations to Rs 9,637 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT before exceptional items rose 41% to Rs 1,084 crore in FY20 over FY19. EBITDA increased 56% to Rs 1,310 crore during the year.
After the successful merger of the consumer products business (CPB) of Tata Chemicals with Tata Global Beverages, the company was renamed as TATA Consumer Products (TCPL) wef from 10 Februart 2020. TCPL is now owns brands like TATA Salt, TATA Tea, Tetley, Eight O' clock and Himalayan Water. This is the maiden result of the combined entity.
For the full year, the India tea business clocked a 7% volume growth and 7% value growth across its brands. For the quarter, the business registered a 5% volume growth and 6% value growth.
Tata Starbucks clocked a strong 21% growth in revenues for the year. It added 39 new stores during the Year, taking the current store count to 185 stores across India. The operations for the Q4 got adversely impacted due to the closure of all the stores during the period of lockdown. The company has now opened around 40 of its existing stores across 7 cities for delivery and takeaway.
Tata Coffee consolidated profit after tax for FY20 increased by 32%. Consolidated profit after tax for Q4 FY20 increased by 35%. Vietnam Operations continue to improve with healthy sales to key customers. Instant coffee exports from India continue to be healthy. Plantations were impacted by lower crop due to adverse weather conditions and pest infestation.
Sunil D'Souza took over as the MD and CEO of the company from 4 April 2020. Commenting on the Q4 performance, he said that, Nearly all our businesses have recorded good growth during the quarter. It has in many ways, been an unprecedented time for the organization in recent months and we geared up successfully to make sure our essential products reach consumers during this period. We have been able to adapt quickly to changes in consumer trends and buying behaviour through our delivery channels as well as our brand communication. Going forward, we will leverage the learnings from this period to accelerate growth and deliver value to our consumers.
Meanwhile, the board have recommended a final dividend of Rs 2.70 per equity share for the financial year 2019-20.
Tata Consumer Products, a subsidiary of the Tata Group, is a multinational non-alcoholic beverages company. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.
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