Tata Consumer Products reported a net profit of Rs237cr for the quarter ended December 2020 (Q3FY21) period, higher by 29% yoy. Revenue from Operations for the quarter at Rs3,070cr is up 23%. While consolidated EBITDA for the quarter grew by 12% to Rs365cr.
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On geographical basis, here's how Tata Consumer performed in Q3FY21:
India Market:
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For the quarter, the India Packaged Beverages business recorded a 43% value growth and 10% volume growth, driven by robust growth across most of our brands and market share gains.
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The health & wellness portfolio in beverages was strengthened with new product launches- Tata Tea Tulsi Green, Tata Tea Gold Care and Tetley Green Tea Immune.
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Continuing with the hyperlocal theme, Tata Tea Premium launched a special festive edition packaging for Diwali, commemorating indigenous art forms and Tata Tea Gold launched festive edition packs in West Bengal for Durga Puja.
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For the quarter, the India Foods business registered a 19% value growth and 12% volume growth. This was the third consecutive quarter of double-digit revenue growth across the Tata Salt and Tata Sampann portfolio.
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Tata Salt saw double-digit volume growth with the value-added salts portfolio growing disproportionately. The salt portfolio also continued to gain market share during the quarter. Tata Salt launched an integrated marketing campaign #SawaalDeshKiSehatKa to build awareness about iodine and its importance as a micronutrient.
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NourishCo recorded a 9% revenue growth, in sharp acceleration from a decline of 18% in the preceding quarter. The growth was primarily driven by Tata Water Plus and Tata Gluco Plus.
Tata Consumer in regards to the integration of the foods and beverages businesses in India, said that a redesigned Sales & Distribution structure has been put in place.
Tata Consumer added, "End to end digitization across the supply chain and distribution partners is underway with channel partner digitization having been completed for urban distributors. The integration is progressing ahead of plan and is expected to be substantially complete by Q4 FY ’21."
International Market:
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During the quarter, the International Beverages business saw steady growth across our key markets- UK, USA and Canada.
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Tetley continues to grow share in the rapidly growing segments of Decaf, Fruit & Herbal and Green tea in the UK.
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Teapigs, our super-premium tea brand saw robust constant currency revenue growth of 32% during the quarter.
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Eight O’Clock Coffee recorded good growth driven by recent innovations and distribution gains.
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Tetley in Canada recorded excellent growth. It continues to be the #1 brand in the market, with both regular and speciality tea growing strongly during the quarter.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered strong volume and revenue growth during the quarter driven by broad-based performance across our major markets and categories. Despite unprecedented inflation in our tea costs in the India business, we managed to deliver strong growth in earnings by leveraging all lines of the P&L. The integration of our food and beverage business in India is progressing ahead of plan and several initiatives on end to end digitization are underway. We have completed the redesign of our S&D system with significantly higher feet on the street, increased focus on modern trade and e-commerce, 100% channel partner automation and expanded outlet reach."
D'Souza added, "We have stepped up the pace of innovation with new launches across markets and activated new engines of growth. We have also stepped up investment behind our brands to further strengthen their reach and relevance to consumers. Overall, despite a challenging external environment this year, we have delivered industry-leading growth while putting in place building blocks for the future.”
At around 1.52 pm, Tata Consumer was trading at Rs585.20 per piece up 1.68% on Sensex. The stock has touched an intraday high of Rs597.90 per piece in early deals.
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