Tata Consumer Products Q2 Review - The Difference Between Good, Great Is Execution: ICICI Securities
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ICICI Securities Report
Tata Consumer Products Ltd. reported revenue, Ebitda and profit after tax growth of 9.1%, 3.4% and 10.2%, respectively YoY.
The company has continued to gain market shares in India Tea (169 basis points), India Salt (440 bps) and Canada regular tea and achieved initial distribution target of reaching one million direct outlets.
We note these achievements are discounted cash flow value-accretive than near-term earnings impact. We model Tata Consumer to gain market shares across segments in FY22-23 due to:
commencement of second leg of distribution expansion,
increase in brand building investments (Q2 FY22 ad-spend up 27% YoY) and
improving coverage of new initiatives such as Soulfull.
Starbucks has continued to report strong recovery with September 2021 same store sales almost compared to Sept 2019.
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