Tata Consumer Products Limited (TATACONSUM)

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Tata Consumer Q4 FY25 Conference call with ppt

Highlights:

  1. Strong revenue growth with consolidated revenue increasing by 17% YoY to ₹4,608 Cr for Q4FY25 and by 16% YoY to ₹17,618 Cr for FY25. Organic growth (excluding acquisitions) was 12% for Q4 and 9% for the full year.
  2. Despite revenue growth, Q4 EBITDA declined 1% YoY to ₹625 Cr with margins contracting to 13.6% (down 250bps), primarily due to higher tea costs in India and coffee costs in the US. For FY25, EBITDA grew 8% to ₹2,502 Cr with margins at 14.2% (down 110bps).
  3. India Foods business performed exceptionally well, growing 27% in Q4 (+17% organic) and 29% for FY25 (+13% organic), with salt volumes growing 5% in Q4 and 4% for the year, along with a 30bps gain in market share.
  4. ‘Growth’ businesses (including Tata Sampann, RTD beverages, Capital Foods, and Organic India) crossed ₹3,200 crores in FY25 revenue, now accounting for 28% of the India business, up from just 6% in FY20.
  5. International business showed steady growth with 5% revenue growth (constant currency) for FY25 and 21% EBIT growth, with strong performances in UK, US, and Canada, and particularly strong results in South Africa and the Middle East (both growing over 20%).
  6. Net working capital improved significantly to 26 days as of March 2025 (down from 50 days in FY20), with the India business achieving negative working capital at -1 day, demonstrating strong operational efficiency.
  7. Innovation remained a priority with 41 new products launched during the year, bringing innovation-to-sales for India to 5.2% in FY25, up more than 6x since FY20.
  8. The company declared a final dividend of ₹8.25 per share, continuing its trend of steady dividend increases from ₹4.05 in FY21 to ₹8.25 in FY25.
  9. Operating cash flow to EBITDA ratio improved to 101% in FY25 from 92% in FY20, showing stronger cash generation capabilities.
  10. Tata Starbucks continued its expansion, adding 58 new stores in FY25 to reach 479 stores across 80 cities (up from 61 cities last year), maintaining its position as the largest organized café chain in India.
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