TATA CONSUMER PRODUCTS Earnings Update
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TATA CONSUMER PRODUCTS
Executive Summary
During the quarter, Consolidated Revenue grew 6%, bringing FY22 revenue growth to 9% (net of International Foodservice business exits). On a
2-year CAGR basis, this translated to 15% revenue growth in FY22, net of International Foodservice business exits.
Consolidated EBITDA for the quarter grew 45%, bringing FY22 EBITDA growth to 11%. On a 2-year CAGR basis, EBITDA grew 16%.
During the year, India business¹ grew 13% led by
O India Beverages² business growth of 10%, with 3% volume growth
India Foods³ business growth of 19%, with 8% volume growth
International business was +1%4 during the year (-2% in constant currency terms), cycling an elevated base (FY21 growth of 12%).
With tea inflation tapering off, India Beverages margins saw significant improvement during the year. We invested some of that in new businesses and
still expanded the consolidated EBITDA margin for the company, despite significant inflation in the foods business and, despite a 29% increase in A&P
for the India business YoY.
Strong Free Cash Flow conversion - FCF to EBITDA ratio (FCF before Capex and tax) for FY22 was 100%.
Dividend proposed at Rs 6.05/share, up 49% YoY.
During the year, we continued to gain market share in both the core categories of tea and salt.
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We continued making progress against our strategic priorities - we acquired Tata SmartFoodz Ltd. (TSFL) to foray into value added, high margin
Ready-to-Eat (RTE) category. We expanded and strengthened our S&D infrastructure, continued the momentum on innovation, invested in new drivers
of growth, and announced a Global Simplification plan to drive efficiencies and synergies.
1 Includes India beverages & India Foods business, including NourishCo.
2 Including Nourish Co revenue, but volume doesn't include Nourishco volumes
3 Including Tata Soulfull, Tata Q revenues. Volume doesn't include Soulfull/Tata Q volumes
4 Like for like, adjusted for the impact of exit from International Foodservice business last year (Empirical in the US+ MAP coffee in Australia)
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