Tata Consumer Products (TATACONSUM) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue grew 16% year-over-year in Q1 FY25 to ₹4,352 crore, with 10% organic growth and 6% from acquisitions, driven by India, International, and Non-Branded businesses.

• India Foods revenue rose 30% (14% organic), India Beverages up 6% (1% organic), and International business up 10% (8% in constant currency); International EBIT up 46% due to pricing and cost savings.

• Integration of Capital Foods is complete; Organic India integration is on track for completion within 100 days.

• Starbucks opened 17 new stores, reaching 438 stores across 65 cities.

• Profit before exceptional items and tax was ₹465 crore, down 6% year-over-year, as higher operating performance was offset by increased finance and amortisation costs from acquisitions.

Financial highlights

• Consolidated EBITDA grew 23% year-over-year to ₹671 crore, with margin expansion of 80 bps to 15.4%.

• Group net profit before exceptionals declined 11% to INR 302 crore; net profit at INR 289 crore, down 14% year-over-year.

• Total income for the quarter was ₹4,391 crore, up from ₹3,799 crore last year.

• Standalone revenue grew 21%, EBITDA up 8%.

• Amortization charge from acquisitions is about INR 55 crore per quarter.

Outlook and guidance

• Rights issue announced at ₹818/share, closing August 19, 2024, to repay acquisition-related financing and for general corporate purposes; promoter group to fully subscribe.

• Underlying growth in India Business was 7%, International Business 8%, and Non-Branded Business 32% year-over-year.

• Management highlighted continued investment behind brands and ongoing business restructuring.