Tata Consumer Q2 Review - Foods Continue To Fire; Tea Pricing Is Key; Margin Expansion Sustains: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Tata Consumer Products Ltd.’s Q2 FY25 operating results were broadly in-line with our expectations, with revenue/Ebitda growth of 13%/17% YoY respectively (including Capital Foods and Organic India and organic revenue up 5% YoY. The India foods’ business continued to lead growth with value/volume +28% YoY (+9% YoY organic)/+1% YoY, with Sampann sustaining robust growth (+26% YoY) and salt growing 2% YoY (price/mix-driven). The India tea business (volume -4% YoY organic) faces sharp tea cost escalation of 25-30%; while Tata Consumer has taken some calibrated price hikes, management intends to prioritize market share over margins here, and will hold back pricing unless competitors take hikes as well. NourishCo (sales -11% YoY) was impacted by unfavorable weather and competitor pricing; Tata Consumer indicated that requisite price cuts have been taken, and expects growth to revive to 25-30% by end-Q3. Starbucks (+2% YoY) was subdued amid a wider downturn in the quick service restaurant industry, with negative same-store sales growth. International beverages’ topline grew 7% YoY driven by UK tea while U.S. Coffee grew 2% YoY. Non-branded solubles/plantations sales grew 19% YoY on strong coffee realisations..Click on the attachment to read the full report:.Tata Consumer Products Q2 Results: Profit Remains Flat, But Beats Estimates.DISCLAIMERThis 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.

Tata Consumer Q2 Review - Foods Continue To Fire; Tea Pricing Is Key; Margin Expansion Sustains: Systematix

Starbucks was subdued amid a wider downturn in the quick service restaurant industry, with negative same-store sales growth, adds the brokerage.

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Tata Consumer Q2 Review - Foods Continue To Fire; Tea Pricing Is Key; Margin Expansion Sustains: Systematix

Starbucks was subdued amid a wider downturn in the quick service restaurant industry, with negative same-store sales growth, adds the brokerage.

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