Tata Consumer Results: Tata Consumer Q2 Results: Profit jumps 22.4% YoY to Rs 328 crore; revenue up 11% | So Good News
Net profit and revenue were above the ET Now survey of Rs 256 crore and Rs 3,341 crore, respectively.
In the quarter, the company made a net profit of Rs 111 crore on the back of the profit made on real estate sales.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose 5% year-on-year to Rs 434 crore, while operating margin narrowed by 73 basis points to 12.90%.
The stagnant EBITDA growth reflects inflationary pressures, weak currency and lower costs in the global business, the company said. Net income during the quarter rose nearly 8% year-on-year to Rs 1,327.30 crore, and other operating expenses rose 15% to Rs 479.3 crore.
Advertising and marketing revenue in the quarter rose 2.3% to Rs 217 crore.
The packaged beverages business in India saw a 7% decline in prices due to price adjustments and overall softness in the category.
However, the company continued to record market gains in the premium tea segment. “We continued to drive premiumisation, as the premium tea market continued to grow faster than the base,” the company said in a release.
Furthermore, the coffee business continued to perform well with a 39% revenue growth during the quarter.
In Q2, the Indian food industry saw a 29% growth in revenue on the gross margin of 23% during the same period last year. Salt’s profile continued its momentum and recorded double the number of digital currencies in the quarter despite the high.
On the national front, revenue from the beverage industry grew by 7%. In the UK, Tata Consumer became the third largest tea company in the market, displacing Twinnings.
“Although the unprecedented inflation and poor cash flows in our global business have been challenging this quarter, we will be driving cost-saving measures to support the future,” Sunil D’Souza, director and CEO said in a release.
The company is constantly making progress in expanding its reach across the board, promoting innovation, and driving digital transformation across the organization. “We will continue to focus on growth and adding new businesses,” D’Souza said.
Tata Starbucks’ revenue grew by a strong 57% in Q2, as store operations stabilized and out-of-home consumption revived. This has taken the number of stores to 300 in 36 cities.