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.

• EBITDA increased 23% year-over-year, with margin expansion of 80 bps to 15.4%.

• 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 in 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

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

• Group net profit before exceptionals down 11% year-over-year at INR 302 crore; net profit at INR 289 crore, down 14% year-over-year due to higher interest and exceptional costs.

• India business revenue: ₹2,815 crore (+14% YoY); International business: ₹1,046 crore (+17% YoY); Non-branded business revenue: ₹501 crore (+33% YoY).

• Standalone net profit declined 28% due to higher interest costs from acquisitions.

• Earnings per share (basic and diluted) for the quarter were ₹3.05, down from ₹3.41 in the prior year.

Outlook and guidance

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

• Growth businesses targeted to move from 20% to 30% of the portfolio, aiming for 30% growth.

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