Tata Consumer Products Q1 Review- Inline; Growth Engines Continue To Fire; New Buys Add To Margins: Systematix

Systematix Research Report

Tata Consumer Products Ltd.’s Q1 FY25 operating results were broadly in-line with our expectations, with revenue/Ebitda growth of 16%/22% YoY respectively (including the acquired Capital Foods and Organic India) and organic revenue up 10% YoY.

The India foods’ business once again led growth with volume/value +30% YoY (+14% organic)/+10% YoY, with Sampann continuing to deliver robust growth (+37% YoY) and margin expansion aided by SKU/packaging interventions.

India tea (volume /value flat/-1% YoY), out-of-home/Nourishco (sales +7% YoY) and Starbucks (+4% YoY) were impacted by severe summer heatwaves that pressured both consumption and tea crop production.

While tea saw price cuts taken, management attributed part of the low NourishCo growth to not taking tactical price cuts at the right time. International beverages’ topline grew a robust 10% YoY driven by international tea while U.S. Coffee sales declined 4% YoY. Nonbranded solubles/plantations sales grew 32% YoY on strong coffee realisations.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.