The board of directors of Tata Consumer Products has approved a dividend payment to its shareholders at its annual general meeting. The company said: “The Board of Directors has approved a dividend of Rs 6.05/shares, up 49 percent YoY.”
Earlier, on the dividend front, the company said on May 4, 2022: “The board of directors has recommended a final dividend of Rs. 6.05/- per equity capital of Re. 1 each (605 percent), for fiscal year 2021-22 The Dividend, if approved by the members at the subsequent General Meeting (“AGM”), will be paid/dispatched (subject to withholding tax at source) after the AGM and within 30 days of its announcement”.
About the past year, the company said: “Last year was a very eventful year. The challenges of the pandemic and more recently geopolitical developments have resulted in a highly volatile macro environment with broad impacts on people, economies and businesses. These unprecedented challenges also provide us with opportunities to adapt to new ways of thinking, be nimble and build for the future. This mindset has helped your company deliver strong overall performance.”
It said it has made significant progress on all six strategic priorities we identified for the company. Significant progress has been made in expanding our distribution, accelerating the pace of innovation, redesigning the supply network and driving digital transformation across the value chain. “These are investments we are making for the long term and I am confident they will position us well for future growth,” the FMCG company said.
In terms of performance, the Indian business grew 13 percent and the company achieved market share gains in both our core tea and salt categories. “With the acquisition of Tata SmartFoodz, we have expanded our portfolio into the Ready-to-Eat category and the company has been integrated quickly. Our growth companies – NourishCo, Tata Sampann, Tata Soulfull and Tata Q – have grown together 52 percent over the year and we are investing in these companies to further fuel them,” the BSE filing said.
The FMCG company is a large enterprise engaged in the trade, production and distribution of tea, coffee and water. The company has delivered stellar returns over the past five years, despite rising inflation and a pandemic that has threatened growth. The stock hit a 52-week low at Rs 650.20/share on March 7, 2022 and a 52-week high at Rs 889/share. The stock has delivered a positive return of 174.43 percent in the past 3 years and a massive multi-dredging return of 375.32 percent in 5 years.
The company pointed to the potential challenges ahead, but said: “Geo-political tensions, supply chain challenges and mismatches between supply and demand in crude oil and several other commodities are driving continued inflation, which is likely to affect demand across all categories.In this uncertain environment, we will continue to focus on strong execution, maintaining agility and agility to adapt and navigate short-term hurdles; and more importantly to capitalize on opportunities that arise in may occur during this period.”
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