Conference Call with Tata Consumer Products Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Tea & Coffee company Tata Consumer Products announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Consolidated revenue grew 13% (12% in constant currency terms) to Rs 4,214 crore. India business grew 15%. Organically (net of acquisitions), growth was 2%. Constant currency (CC) growth in the international business was 5%. The non-branded business grew 19% in CC terms H1FY25 Financial Highlights Consolidated EBITDA at Rs 629 crore. (+11% YoY) with EBITDA margin at 14.9%. The India business EBITDA declined 4% YoY with margin contracting 250 bps. Organically, EBITDA declined 23% with margin contracting 380 bps led by tea cost inflation. International business EBTIDA grew 40% (CC) YoY. EBITDA margin was 420 bps higher led by price increases and lower input costs. EBITDA for the non-branded business grew 70% (CC) with a margin expansion of 810 bps owing to better realizations. Performance Highlights: Consolidated revenue growth was 13% in Q2FY25 (5% organic). During the quarter, India Beverages grew 3% (-4% organic), with tea volumes declining 4% YoY. India Foods revenue grew 28% (+9% organic). Volume growth was 1%. International business recorded 7% revenue growth (5% in constant currency). Profitability improved significantly, +53% YoY. Growth businesses grew 15% organically. The RTD business was impacted by unfavourable weather and competitive actions. The newly acquired growth businesses of Capital Foods and Organic India continue to deliver improving quarterly run-rates with strong EBITDA expansion YoY. Capital Foods revenue grew 25% QoQ and Organic India revenue grew 45% QoQ. Consolidated EBITDA grew 11% with margin contracting 30bps to 14.9%. This was primarily led by higher input costs for the India tea business. Salt market share strengthened further, with 150bps gain on a MAT basis; India tea business saw a marginal value share loss of 20bps. The incubation of the food services channel and pharma channel continues as planned with the pilots having started in September. The merger of our wholly-owned subsidiaries in India viz. NourishCo, Tata Soulfull, and Tata Smart Foodz was successfully completed during the quarter in line with our ambition to simplify, synergise and scale the business. Tata Starbucks is now the largest cafe operator in India with 457 stores across 70 cities. Result PDF