Tata Consumer Products (TATACONSUM) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue grew 13% year-over-year in Q2 FY25, with India Foods up 28-29% organically and International business up 7%, while India Beverages faced margin pressure from tea cost inflation and declined 3-4% YoY.

• Growth businesses, including Capital Foods and Organic India, delivered strong quarter-on-quarter revenue and EBITDA growth post-integration.

• Group consolidated net profit for the quarter was ₹367 crore, up 1% YoY, aided by a one-time tax credit from subsidiary mergers.

• The company is now debt-free and net cash positive after completing a rights issue and repaying short-term debt.

• Merger of NourishCo, Tata Soulfull, and Tata Smart Foodz completed, with Tata Starbucks now operating 457 stores.

Financial highlights

• Q2 consolidated revenue: ₹4,214 crore (+13% YoY); H1 revenue: ₹8,567 crore (+15% YoY).

• Q2 EBITDA: ₹629 crore (+11% YoY), margin at 14.9% (down 30 bps YoY); H1 EBITDA margin at 15.2% (up 30 bps YoY).

• Group net profit for H1 declined 4% YoY; Q2 net profit was ₹367 crore, up 1% YoY, aided by a one-time tax credit.

• Standalone Q2 revenue: ₹3,046 crore (+16% YoY); standalone PAT: ₹223 crore (-14% YoY).

• Non-branded business revenue up 19% YoY in Q2, driven by strong coffee and tea prices.

Outlook and guidance

• Continued elevated tea input costs expected, with further staggered price increases likely.

• Salt margins expected to be stable or slightly improve after recent price increases.

• Growth businesses targeted to return to 25-30% growth rates as pricing corrections take effect.

• Margin improvement anticipated year-on-year, contingent on ability to pass on input costs.

• Focus on scaling new businesses and driving synergies from recent acquisitions.