TATA CONSUMER PRODUCTS Earnings Update
TATA CONSUMER PRODUCTS
To conclude
Macros
The recovery following the third wave of the pandemic in India has been swift. The geopolitical situation is exacerbating inflationary pressures.
Inflation and its impact on consumer behaviour is going to be the key monitorable going forward in India.
With the normalization of activity in our key international markets (US, UK, Canada), the in-home consumption is tapering off and the impact of
broad-based inflation needs to be monitored.
Business
In FY22, we have continued to deliver competitive growth in our core businesses - gaining market share both in tea and salt.
India Packaged Beverages business has seen a return to normalized margins and moderation of in-home consumption. In terms of growth, we
are cautiously optimistic, given the macro environment. We will continue to focus on execution to drive growth.
For the year, the foods business has seen good volume growth, driven by both Salt and Sampann. However, we will be lapping an extraordinary
comparator next quarter. In terms of margins, we expect the cost pressure to continue for a while.
Our Out Of Home businesses i.e. both Starbucks & Nourish Co have delivered a robust performance, despite two waves of the pandemic during
the year. We expect continued momentum in both these businesses, subject to no new waves of the pandemic.
We will continue to focus on growing Tata Soulfull and drive portfolio expansion. TSFL is on track for International expansion by Q2/Q3.
In the international business, with a largely normalized operating environment, the focus will be on executing against plans, especially the
3 -brand strategy in tea. We will also be taking pricing actions as appropriate.
Given the inflation and investments required for some of the new businesses, we will continue to optimize margins at the Consolidated level for
the company.
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