Q2 2025 Tata Consumer Products Ltd Earnings Call Transcript
Key Points
- Tata Consumer Products Ltd (BOM:500800) reported a 13% increase in revenue, with India Foods revenue growing by 28% organically.
- The international business showed strong performance with a 7% revenue growth and improved profitability, particularly in the UK.
- The company has successfully integrated newly acquired businesses, with Capital Foods and Organic India showing quarter-on-quarter growth of 25% and 45% respectively.
- Tata Starbucks has become the largest cafe operator in India with 457 stores across 70 cities.
- The company has become net cash positive after completing a rights issue and paying off debt, which is expected to positively impact future financials.
- India beverages segment experienced a decline in volumes, marking a rare occurrence of volume decline year-on-year.
- The company faced a contraction in EBITA margins by 30 basis points to 14.9%, primarily due to higher input costs in the India tea business.
- The ready-to-drink business was negatively impacted by unfavorable weather and competitive pricing, leading to an 11% decline in revenue.
- The non-branded business is experiencing stress in demand for soluble coffee due to high pricing, which may affect future profitability.
- Starbucks reported a challenging quarter with only 2% revenue growth, attributed to reduced consumer traffic in the QSR segment.
Ladies and gentlemen, good day. And welcome to Q2 FY 25 earnings conference call of Data Consumer Products Limited hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Manoj Menon from ICICI Securities. Thank you and over to you.
Hi, everyone. As usual. It's a wonderful good morning afternoon evening, depending on part of the world you're joining this call from. This is Manoj Menon representing ICICI Securities and it's our absolute pleasure to welcome the data consumer management team for the two Q2 '25 results conference call without much ado over to NADI from the management for the for proceedings, please. Thank you.
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