Tata Consumer scales coffee presence with Starbucks surge

Expands Starbucks footprint to 80 cities

Tata Consumer Products Ltd (TCPL) reported a strong financial performance for the full year, with consolidated revenue growing 16 per cent, including acquisitions and 9 per cent organically. A key highlight was the continued expansion of the Starbucks India joint venture, which added 58 new stores during the year, taking the total count to over 350 stores across 80 cities. The brand now has over 100 stores in Mumbai alone, reaffirming its position as the largest coffee operator in the country, according to the company’s BSE filing.

The India-branded business delivered a 5 per cent underlying volume growth (UVG) for the year. India Beverages reported 3 per cent organic growth, with tea volumes rising 1 per cent, recovering in the second half after a sluggish start. India Foods saw 13 per cent organic growth, led by a 4 per cent increase in salt volumes. For Q4, India Beverages posted 9 per cent organic growth, and India Foods surged 17 per cent.

To enhance transparency, the company has begun reporting UVG this quarter, encompassing segments like salt, tea, and Sampann. Growth businesses recorded 24 per cent organic growth and contributed 28 per cent to India revenues, crossing Rs 3,200 crore in revenue.

International business grew 5 per cent in revenue for both Q4 and the full year, with EBIT margin expanding 190 bps to 12.6 per cent for the year. The UK business declined 7 per cent in Q4 due to planned adjustments, while the U.S. tea segment showed a turnaround with 15 per cent revenue growth. Canada also saw a recovery, registering 5 per cent revenue growth and maintaining a strong 27 per cent market share.

Despite inflationary pressure on tea and coffee costs, full-year EBITDA rose 8 per cent to Rs 2,500 crore, though margins declined by 110 bps to 14.2 per cent. TCPL declared a final dividend of Rs 8.25 per share.