Tata Global Beverages announces increase in profit before Exceptional Items, Group Net Profits

For the quarter, Income from operations at Rs 1744 crores increased by 3% as compared to corresponding quarter of the previous year.

At previous year exchange rate the increase is 5%. Profit before exceptional items at Rs 146 crores is higher by 24% as compared to the corresponding quarter of the previous year despite higher advertising spends on base business and new launches, due to improved operating performance and lower finance costs.

Group Consolidated net profit for the quarter at Rs 145 crores is higher by 119% as compared to the corresponding quarter of the previous year reflecting improved operating performance and favourable impact of exceptional items.

The Board of Directors of Tata Global Beverages Ltd. at its meeting held on January,16 2017 have accorded an in principle approval for divesting its stake in its Joint Venture, Zhejiang Tata Tea Extractions Company Limited subject to necessary approvals. The transaction will also be subject to completion of negotiations, definitive agreements and satisfaction of conditions precedent.

Tata Coffee Ltd., Indian subsidiary of Tata Global Beverages Ltd, has announced setting up a state of the art greenfield freeze dried coffee plant in Vietnam with an installed capacity of 5000MT pa. This move will further strengthen Tata Coffee’s growth in the premium instant coffee segment strengthening the global footprint.

Tata Coffee has made significant strides in moving up the coffee quality value chain by focusing on differentiation, premiumisation and consumer centricity.

With effect from October 1, 2016, the Group has, pursuant to amendments in a joint venture operating agreement, accounted Empirical Group LLC, in which the Group has a holding of 56%, as a subsidiary.

The quarter saw sustained progress on earlier product launches and innovation.

In India, Tata Tea Elaichi and the Tata Tea Maharashtra gold mixture - a blend specially crafted for the Maharashtra market, made good progress last quarter.

Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said: “The Company recorded significant profit growth last quarter despite higher spends behind brands. Tata Global Beverages is leveraging consumer insights to create magical beverage moments for our consumers. Whether it is capturing white spaces in target markets or strengthening our key brands further, our product and marketing initiatives aim to break clutter and enhance the consumer experience. Along with our tea portfolio, we are focusing on steadily scaling our coffee and water portfolio by creating differentiated brands in these categories.”