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%, and profitability improved at the group level.

• 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.

• Group consolidated net profit was ₹289 crore, down 14% year-over-year, mainly due to higher interest and amortisation costs from acquisitions.

Financial highlights

• Consolidated revenue: ₹4,352 crore, up 16% year-over-year; India business grew 16% (7% organic), International business up 8% in constant currency.

• Consolidated EBITDA: ₹671 crore, up 23% YoY; EBITDA margin at 15.4%.

• Group net profit before exceptionals: ₹302 crore, down 11% YoY; net profit after tax: ₹314 crore.

• Non-branded business revenue up 33% (32% constant currency), driven by strong coffee prices.

• Standalone net profit: ₹188 crore, down 28% YoY, impacted by higher interest costs from acquisition financing.

Outlook and guidance

• Rights issue proceeds will be used to repay short-term debt from acquisitions, expected to close by August 19, 2024.

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

• Integration of recent acquisitions expected to drive further synergies and margin accretion.

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