Tata Consumer Products Results for the Quarter and Year ended March 31, 2022

Consolidated Results:

• Revenue from Operations for the quarter at Rs 3175 cr, up 5 percent on a reported basis and up 6 percent on a like to like basis, net of exits
• Revenue from Operations for the year at Rs 12425 cr, up 7 percent on a reported basis and up 9 percent on a like to like basis, net of exits
• Consolidated EBITDA for the quarter at Rs 458 cr grew by 45 percent, and for the full year at Rs 1749 cr grew by 11 percent
• Group Net Profit for the quarter at Rs 239 cr and for the full year Rs 1015 cr

National, May 4, 2022: Tata Consumer Products today announced its results for the quarter and fiscal year ended 31st March 2022.

For the quarter, revenue from operations increased by 5 percent (4 percent in constant currency) as compared to the corresponding quarter of the previous year, mainly driven by growth in India branded business. Profit before exceptional items and tax at Rs 403 crore is higher by 54 percent. Group Consolidated Net Profit at Rs 239 crore is higher by 222 percent, mainly aided by growth in underlying profitability and lower exceptional costs.

Some of the key business updates are:

India

• For the year, the India Packaged Beverages business recorded a 6 percent growth in revenues, on an elevated base that saw 32 percent revenue growth last year.
• In addition to recording market share gains in branded tea, we maintained our leadership position in the tea category in the e-commerce channel.
• Continuing the innovation agenda, during the quarter, we launched an adrak (ginger) flavoured tea under the Tata Tea Agni brand in core markets of the North.
• The premium portfolio in tea continued to gain market share. This includes brands such as Tata Tea Gold, Chakra Gold, Tata Tea Gold Care and Chakra Gold Care.
• Coffee revenues grew 46 percent during the year, led by several new launches and distribution expansion. These new launches included Tata Coffee Gold, Tata Coffee Quick Filter and the new Sonnets range.
• For the year, the India foods business registered 19 percent revenue growth, on an elevated base that saw 18 percent revenue growth last year.
• The salt portfolio continued its momentum and recorded double-digit growth during the year along with market share gains. The premium salts portfolio recorded 26 percent growth during the year, continuing its strong trajectory in line with our premiumisation agenda.
• The newly launched Tata Salt Immuno offers consumers a category-first unique proposition of added Zinc, driving premiumisation for the portfolio and upgrading consumers to a more value-added offering.
• Tata Sampann had a strong quarter and year, recording double-digit volume growth.
• Tata Q, our Ready to Eat (RTE) brand, became the #2 brand in the category in India (Source: Nielsen RMS MAT Dec ’21 All India Urban) and launched 6 new variants to strengthen its product portfolio.
• Nourish Co sustained strong growth momentum during the year with an 83 percent revenue growth, albeit on a low base, led by strong growth across products and geographies. The business unlocked new geographies and markets with good consumer acceptance. The business recorded several milestones during the year, with Himalayan breaking even at EBIT level for the first time since its inception, Tata Copper Water franchise scaling to >3x and Innovation contributing 10 percent to sales.  
• We reached new milestones in our Sales & Distribution transformation agenda. Our direct reach is now c.1.3 million outlets, and we have taken on a new target of 1.5 million direct outlets coverage by March ’23. We have strengthened our distributor network- the total number of distributors has grown 25 percent y-o-y, and the number of rural/ semi-urban distributors has quadrupled.
• E-commerce channel continued its strong trajectory during the year, accounting for 7.3 percent of India's business sales, up from 2.5 percent in FY20.

International

• For the year, the International Beverages business revenue grew 1 percent, like for like, net of exits, cycling an elevated base that saw 12 percent growth last year.
• Gained market share in the Fruit and Herbal category in the UK, driven by strong performance of Good Earth, Tetley Supers and Tetley Herbals innovations.
• Teapigs in the UK continued its strong growth trajectory. The newly launched Teapigs Decaf blend received a great consumer response.
• Eight O'Clock coffee in the USA introduced three new Barista blends and a new campaign around ‘Be your own Barista’ to build awareness and trial.
• In the USA, recent innovations in tea- Good Earth Sensorial blends, Tetley Flavours of Britain and Tetley Irish Breakfast continue to perform well.
• In Canada, Tetley emerged as the Most Trusted tea brand for the 8th consecutive year. The Tetley Supers range in Canada continued to register strong performance.

Tata Starbucks

• Tata Starbucks recorded revenue growth of 76 percent for the year, despite two waves of the pandemic. For the quarter, revenue grew 32 percent partially impacted by the third wave of Covid19.
• Growth is back on a strong trajectory led by swift re-opening post the third wave.
• Delivery channel salience remained ahead of pre-Covid levels in FY22.
• Opened 23 new stores during Q4 and entered four new cities- Goa, Bhubaneshwar, Nashik and Guwahati. This brought the total number of store additions to 50 during FY22.

Sustainability Update

• Tata Tea, through its Jaago Re initiative, launched an initiative on World Water Day to spread awareness about water conservation through a short digital film on ‘how a small step can make a huge difference.’
• In our international markets, Tetley, Good Earth & Teapigs all carry the climate-friendly seal on Amazon, which helps consumers discover and shop for more sustainable products on the platform.
• Tata Coffee, a subsidiary of Tata Consumer Products, won four awards at OHSSAI HSE Excellence & Sustainability Awards 2021 for its continuous initiatives to make units and processes more environmentally friendly and sustainable.
• Tata Starbucks continued its focus on sustainability by educating consumers on how to make better use of its carry bags and other accessories

Awards Update

• Tata Consumer Products was featured in the ‘Leadership’ category on the Indian Corporate Governance assessment for the second year in a row by IiAS–a testimony to the robust corporate governance practices of the company.
• Tata Consumer Products was and recognised with a Gold at Grocery Aid Award for the support extended to Grocery Aid UK –a charity that offers emotional, financial and practical assistance to UK’s grocery industry and its workers.
• TCPL, Tata Chemicals and Tata Insights & Quants came together to and optimise Rail Logistics Planning for Salt and Chemicals and won the Best Paper award at the 8th International Conference on Business Analytics, and Intelligence (ICBAI) organised by IIM B, IISC.
• TCPL won the Masters of Risk award for the 3rd consecutive year in the FMCG Sector Large Cap category at the 8thedition of the CNBC-TV18 India Risk Management Awards.

Sunil D’Souza, managing Director and CEO of Tata Consumer Products, said, “Despite all the macro & operating challenges during the year, we delivered reasonable revenue growth along with improved profitability for the company.

In the core businesses, we delivered competitive growth with market share gains in both tea and salt. Our out-of-home businesses – NourishCo and Starbucks, both delivered robust performance during the year. With tea inflation tapering off, the India Beverages business saw a return to normalised margins, but the foods business margin was impacted by significant inflation during the year. We dynamically managed the P and L to expand the EBITDA margin for the company while significantly increasing the A and P in India business and investing in new businesses to accelerate future growth.

Our transformation agenda is on track, and we made substantial progress against our strategic priorities during the year. We entered the value-added, high margin Ready-to-Eat category with the acquisition of Tata SmartFoodz. We expanded and strengthened our S and D infrastructure, accelerated momentum on innovation, invested in new drivers of growth and embarked on a global simplification plan to drive further efficiencies and synergies.”