Latest news with #SunilD'Souza
Mint
6 days ago
- Business
- Mint
Starbucks India to accelerate store expansion after ‘tempered' growth over previous 2 quarters'
New Delhi: Tata Consumer Products Ltd, the operator of Starbucks in India, will accelerate the expansion of the coffee chain following a period of 'tempered" store additions. The company opened six Starbucks outlets in India in the June quarter, bringing the total tally to 485. The store expansion was slightly "tempered," the management said. 'You would probably see a similar number or maybe slightly more this quarter. I would probably wait for one more quarter before pressing the accelerator on outlets," Sunil D'Souza, managing director and CEO of Tata Consumer Products, said in an interview with Mint on Thursday. Store openings for Starbucks moderated in the past two quarters, with the company adding six stores per quarter. This was lower than the double-digit expansion in previous quarters. Total store additions in FY25 were 58, down from a record 95 opened in FY24. Starbucks' revenue grew 6% year-on-year during the June quarter, while same-store sales growth was positive, except in May, when regional geopolitical tensions flared up and impacted store operating hours in some areas. 'We started seeing traffic increase as well as same-store sales growth starting to pick up into the positive territory after four to five quarters of pressure, except for the month of May when we had store closures and reduced timings with Operation Sindoor, especially in north and northwestern India. Other than that, we can see that trajectory starting to shift and growth starting to come back. I'm cautiously optimistic," he said. The coffee chain started operating in India in 2012 through a 50:50 joint venture between Starbucks Coffee Company and Tata Consumer Products. In early 2024, Tata Starbucks Pvt Ltd stated its ambition of operating 1,000 stores in India by 2028, effectively opening one store every three days. Discretionary spending stress Store openings in the coming quarters could more than double from levels in the June quarter, D'Souza said. The chain had added 16 stores in the December quarter, with expansion dialed up in east India. In the September quarter, 19 stores were added and in the June quarter of FY25, it opened 17 outlets. High food inflation has tempered consumer demand across the board, leading many companies to report sluggish sales. D'Souza acknowledged that this "stress on discretionary spends" had impacted the quick service restaurant (QSR) space, including Starbucks. However, recent initiatives like new menu items are showing results, he said. A December report by Motilal Oswal highlighted significant demand challenges, weak unit economics, and increased competition impacting QSR financial performance in the September quarter, leading to contracted margins across major brands. The chain is 'exploring" more Starbucks Reserve stores following the 2022 opening of the first such outlet in Mumbai's Fort area. Reserve stores are premium outlets that offer small-lot, single-origin coffees from around the world. 'We are exploring 'Reserve' in one or two cities nationally, but it depends. We've still not pressed the trigger on anything. We opened Starbucks Reserve after converting the existing Starbucks store in Mumbai to a Reserve store, and that is doing very well for us. So, we've been thinking about expanding," D'Souza said. Shares of Tata Consumer Products rose 1.06% on the BSE at 1:12 PM on Thursday, a day after the company's earnings announcement.
Mint
7 days ago
- Business
- Mint
Tata Consumer Reports Coffee Prices Decline Amid Ongoing Volatility
Packaged food and beverage maker Tata Consumer Products Ltd (TCPL) on Wednesday said that coffee prices are currently on a downward trajectory, though ongoing volatility necessitates close monitoring following a period of significant surge. In the March quarter, TCPL had noted that prices of Arabica coffee were 97% higher year-on-year, while Robusta coffee prices were up 56%. Prices of Arabica and Robusta— types of coffee beans—have moderated significantly, yet remain volatile, according to the company's investor presentation released Wednesday. 'The issue with falling coffee prices is your trailing inventory, that is the whole catch, because you're sitting with inventory and selling it at a lower price. It will stabilize at a point in time. We are probably close to the bottom on the margins front. We are fairly well hedged in coffee, we've taken a small charge this quarter on the mark to market. We'll have to see one more quarter, and of course it largely depends on where the coffee prices finally settle. If they are roundabout where they are currently, we'll see probably one more quarter of pain, and then we should get back to the historical margins that we had in business,' Sunil D'Souza, Managing Director and chief executive officer of Tata Consumer Products said during the company's post-earnings call on Wednesday evening. Despite the global price drop impacting profitability, TCPL's India coffee business reported revenue growth of 67% on the back of a 33% increase in volumes. The company sells coffee under brands such as Tata Coffee Grand, Eight O'Clock Coffee, Sonnets by Tata Coffee and Tata Coffee Gold, competing with players like Nestle India and Hindustan Unilever in the packaged coffee market. The maker of Tata Salt and Tata Tea reported a 15% jump in quarterly net profit, reaching ₹ 332 crore, up from ₹ 289.25 crore in the corresponding period last year. Consolidated revenue for the three months ended 30 June grew 10% year-on-year to ₹ 4,779 crore. The India branded business recorded a 6.8% volume growth, with the core India business, encompassing both tea and salt, reporting double-digit growth. 'During the quarter, we recorded double-digit growth in the core India business across both tea and salt, backed by volume growth. Tata Sampann continued its strong trajectory, with new launches & innovations performing well. However, unfavourable weather impacted volume growth in the ready-to-drink business. While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion,' D'Souza said. On the tea front, where the company sells brands like Tata Tea and Tetley, TCPL stated that prices remain favourable, though the outlook is cautiously optimistic. According to the company's investor presentation, North India tea prices are moderately lower compared to the same period last year due to robust crop supply in the region, while South India tea prices continued to soften. Consolidated Ebitda (earnings before interest, taxes, depreciation and amortization) for the June quarter declined by 8%, primarily attributed to higher tea costs in India and coffee price corrections in the non-branded segment. TCPL also has a large overseas business. It also sells staples and breakfast cereals. 'If you look at the crop itself, I think we are already ahead in North India compared to last year... Now, we do expect this year to be normal, even the IMD forecast a normal rainfall season, and if that happens, there's no reason for us not to go back to the tea cropping levels of 2023, and therefore the pricing to start unwinding,' he said. Meanwhile, the company's cafe chain business under Starbucks reported positive same-store sales growth during the quarter, with overall revenue for the segment growing 6%. Same-store sales growth was positive, except during May when regional geopolitical tensions flared up and impacted store operating hours in specific geographies. Starbucks operates 485 stores in India. 'We tempered store opening for the quarter adding only six new stores. We are focusing on footprint growth across metros as well as smaller cities,' he said.
Economic Times
23-07-2025
- Business
- Economic Times
Tata Consumer Products posts 10% jump in Q1 PAT driven by tea, salt sales
Tata Consumer Products Ltd (TCPL) on Wednesday reported a 9.8% year-on-year (yoy) jump in its consolidated revenue from operations at Rs 4778.91 crore for the first quarter ending June, while net profit grew by 10.2% yoy at Rs 346.44 crore in the period under review. ADVERTISEMENT The manufacturer of Tata Tea and Tata Salt said the India business recorded double digit growth in the quarter driven by the tea and salt categories, while the ready to drink business volume growth was impacted by unseasonal rains. The company's international business grew 5% at constant currency revenue growth. TCPL's standalone revenue from operations increased by 10% yoy during the quarter to Rs 3529 crore, while net profit after taxes grew by 285.9% to Rs 713.9 crore. The company said the significantly high growth in net profit is due to dividend income of Rs 464 crore received from its overseas subsidiaries. The company's managing director Sunil D'Souza told analysts on Wednesday that tea price right now is 13-15% below last year and he does not expect it to trend lower. 'Coffee, while trending downwards, is not a uniform trend, there is still a bit of volatility there that we need to manage,' he said. D'Souza further said while TCPL is still a relatively small player in coffee, there was 33% growth in terms of volume and 67% in terms of value during the Wednesday, TCPL closed at Rs 1064 per share at the NSE, down 1.92% from the previous closing company's joint venture with international coffee chain Starbucks added six net new stores during the quarter taking the total Starbucks store count to 485 across 80 cities. ADVERTISEMENT TCPL said there was a 6% revenue growth for Tata Starbucks during the quarter and positive same store sales growth except in May when 'the regional geopolitical tensions flared up and impacted store operating hours in specific geographies'. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
23-07-2025
- Business
- Time of India
Tata Consumer Products posts 10% jump in Q1 PAT driven by tea, salt sales
Tata Consumer Products Ltd (TCPL) on Wednesday reported a 9.8% year-on-year (yoy) jump in its consolidated revenue from operations at Rs 4778.91 crore for the first quarter ending June, while net profit grew by 10.2% yoy at Rs 346.44 crore in the period under review. The manufacturer of Tata Tea and Tata Salt said the India business recorded double digit growth in the quarter driven by the tea and salt categories, while the ready to drink business volume growth was impacted by unseasonal rains. The company's international business grew 5% at constant currency revenue growth. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Data Analytics Others CXO Data Science Product Management others Public Policy MBA Management Finance Artificial Intelligence Operations Management healthcare Degree Healthcare Digital Marketing Data Science Leadership MCA PGDM Project Management Design Thinking Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details TCPL's standalone revenue from operations increased by 10% yoy during the quarter to Rs 3529 crore, while net profit after taxes grew by 285.9% to Rs 713.9 crore. The company said the significantly high growth in net profit is due to dividend income of Rs 464 crore received from its overseas subsidiaries. The company's managing director Sunil D'Souza told analysts on Wednesday that tea price right now is 13-15% below last year and he does not expect it to trend lower. 'Coffee, while trending downwards, is not a uniform trend, there is still a bit of volatility there that we need to manage,' he said. D'Souza further said while TCPL is still a relatively small player in coffee, there was 33% growth in terms of volume and 67% in terms of value during the quarter. On Wednesday, TCPL closed at Rs 1064 per share at the NSE, down 1.92% from the previous closing price. The company's joint venture with international coffee chain Starbucks added six net new stores during the quarter taking the total Starbucks store count to 485 across 80 cities. TCPL said there was a 6% revenue growth for Tata Starbucks during the quarter and positive same store sales growth except in May when 'the regional geopolitical tensions flared up and impacted store operating hours in specific geographies'.
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Business Standard
23-07-2025
- Business
- Business Standard
Tata Consumer Q1 profit up 15.1% on strong tea, salt, Sampann sales
Fast-moving consumer goods major Tata Consumer Products on Wednesday reported a 15.1 per cent rise in net profit attributable to shareholders at Rs 334 crore in the first quarter of the current financial year (Q1FY26). Net sales in the reported quarter were up 9.8 per cent compared to the same period last year at Rs 4,779 crore, backed by strong growth in both the tea and salt segments of its India business. In the India business, revenue from the packaged beverages segment grew 12 per cent, while coffee posted robust growth of 67 per cent during the April–June quarter. The India foods business revenue rose over 14 per cent, with the value-added salt portfolio growing 31 per cent. The Tata Sampann portfolio maintained strong momentum, growing 27 per cent for the quarter. Tata Consumer Products' international business revenue grew 5 per cent in constant currency terms, driven by strong coffee performance in the US. 'We delivered steady topline growth of 10 per cent in Q1FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. Tata Sampann continued its strong trajectory, with new launches and innovations performing well. However, unfavourable weather impacted volume growth in the RTD business. While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion,' Sunil D'Souza, managing director and chief executive officer of Tata Consumer Products, said in the results release. He added that the company delivered yet another quarter of strong performance in the international business, with margins being accretive to those of the India business. 'In India, we continued to strengthen omni-channel capabilities, including food services and pharmacy, with channels of the future—e-commerce and modern trade—demonstrating robust growth. Tata Starbucks continued to expand its store footprint across metros and smaller cities in India, with a total store count of 485 across 80 cities,' he said.
