Tata Consumer drops as margin shrink to 13.6% in Q4 FY25; Q4 PAT climbs 52% YoY
EBITDA margin was 14.2% in FY25, down 110 bps, primarily impacted by tea cost inflation in India.
The company reported a 52.06% jump in consolidated net profit to Rs 407.07 crore in Q4 FY25 as compared with Rs 267.71 crore in Q4 FY24. Group net profit jumped 59.19% to Rs 344.85 crore in Q4 FY25 as compared with Rs 216.63 crore in Q4 FY24.
Revenue from operations jumped 17.35% to Rs 4,608.22 crore in Q4 FY25 as compared with Rs 3926.94 crore in Q4 FY24.
Profit before exceptional item and tax (PBIT) declined 31.07% YoY to Rs 278.59 crore in Q4 FY25. Exceptional item stood at Rs 80.20 crore in Q4 FY25. Exceptional for the current quarter represents fair value gains of Rs 120 crore on re-measurement of contingent consideration, asset write-down of Rs 39 crore and cost relating to business restructure & reorganization of Rs 1 crore.
Consolidated EBITDA was at Rs 625 crore in the fourth quarter of FY25, down 1% as compared with Rs 631 crore, driven by higher input costs in the India and international businesses. EBITDA margin narrowed to 13.6% in Q4 FY25 as against 16.1% in Q4 FY24.
For the quarter, India Beverages business revenue grew 9% (excluding Organic India). Underlying Volume Growth (UVG) for India Branded Business (excluding acquisitions) was 5.9% for the quarter.
The India Foods business revenue grew 27% during the quarter (+17% excluding Capital Foods). Salt revenue grew 13%, with value-added salt portfolio growing 31% during the quarter. Tata Sampann portfolio continued its strong momentum and grew 30% for the quarter.
The companys growth businesses (Tata Sampann, RTD, Tata Soulfull, Capital Foods, Organic India) grew 66% during the Quarter (24% organic). Ecommerce channel grew 66% and Modern Trade recorded 26% growth in the quarter, (excluding Capital Foods and Organic India).
For the quarter, the International business revenue grew 5% with FY25 growth at 7% (excluding international business of Capital Foods and Organic India)
Starbucks opened 6 new stores during the quarter and entered into 6 new cities.
On financial year basis, the companys consolidated net profit jumped 11.14% to Rs 1278.47 crore in QFY25 as compared with Rs 1150.33 crore in FY24. Revenue from operations increased 15.87% to Rs 17,618.30 crore in FY25 as against 15,205.85 crore in FY24.
Starbucks added 58 net new stores were added in FY25. This brings the total number of stores to 479 across 80 cities.
Sunil DSouza, managing director & CEO of Tata Consumer Products, said, During the year, we recorded growth in our core businesses of India tea and salt in addition to driving strong growth in Tata Sampann and Tata Soulfull. While the RTD business was impacted in the earlier part of the year, we have seen a strong rebound as we exit the year. Our recent acquisitions- Capital Foods and Organic India performed well, and we are accelerating growth momentum through innovation and expansion into new channels of Food Services and Pharma.
In India, we continued to strengthen our Sales & Distribution infrastructure and completed rollout of a next gen Go-to-Market platform. Channels of the future i.e. Ecommerce and Modern trade continue to fuel growth momentum. We maintained momentum in our innovation agenda, with several product launches across categories, focusing on Health & Wellness, Convenience and Premiumization. We launched 41 new products during the year and our innovation to sales ratio was 5.2%. Overall, despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward.
Meanwhile, the companys board has recommended a dividend of Rs. 8.25 per equity share of Re. 1 each for FY25, if approved by the shareholders at the ensuing 62nd Annual General Meeting, will be paid on or after June 21, 2025.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The companys portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.
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