Tata Global Beverages sees growth in both branded and non-branded business
Kolkata/IBNS: Tata Global Beverages Ltd, which announced its consolidated results for the quarter ended September 2019 (Quarter), reported that revenue from operations in the latest qaurter increased by 4% driven by improvements in both branded and non-branded business.
At constant currency revenue growth is 5%.
Profit before taxes, excluding one-off items included under Other Income in the prior year, is higher by 28%.
According to the company, improvement is driven by branded business, both India and International, coupled with stable performance in non-branded businesses.
Further, during the Quarter, tax has been provided for, wherever applicable, at the reduced rate in accordance with the Taxation Laws (Amendment) Ordinance, 2019.
The one time impact of the tax rate change on the Group Consolidated Net Profit of the current quarter is a charge of Rs 9 Crores, arising mainly on account of reversal of opening net deferred tax assets (inclusive of impact referred to below).
Share of profits in Associates and joint ventures for the current quarter includes a charge of Rs 14 Crores due to reversal of opening deferred tax assets as a result of reduced tax rate whereas the quarter ended 30th September 2018 had a credit of Rs 37 Crores on recognition of deferred tax assets in a Joint Venture.
Group Consolidated Net Profit, excluding the impact of one off items as explained above, is higher by 45% as compared to corresponding quarter of the previous year.
For the Quarter, the total revenue from Tata Coffee and Vietnam unit recorded 18% growth, due to commencement of sales from Vietnam and higher sales in the Instant Coffee division.
Tata Coffee won the ‘Best Indian Coffee’ recognition at the 4th Ernesto Illy International Coffee Awards, which recognises excellence in producing the highest quality coffee through sustainable means.
Tata Starbucks clocked a 26% growth in revenue for the Quarter.
It entered Gujarat in August, opening 5 stores - 3 in Ahmedabad and 2 in Surat.
It now has 163 stores spread across 10 cities in India.
NourishCo recorded a total revenue growth of 8% during the Quarter, with continued focus on the national rollout of Tata Gluco Plus.
A new Lychee flavor variant was launched and has received very good consumer response, accroding to the company.
For the Quarter, the India tea business clocked a growth of 8% both in volume and value terms.
According to the company, its flagship brands Tata Tea Premium, Gold, Agni and Spice Mix saw growth, led by investment behind brands and promotions.
Tata Tea Gold launched the #DilkiSuno campaign, which, according to the company, strengthened its brand equity by being the official brand partner for the prestigious IIFA (International Indian Film Academy) Awards,
To leverage the health & wellness and convenience trends, the company launched two new products - Tata Tea Tulsi Green Tea and Tata Tea Quick Chai Lite (a 3 in 1 tea mix, a ‘low sugar’ variant).
The company consummated the acquisition of the branded business of Dhunseri Tea and Industries Limited that includes the ‘Lal Ghoda’ and ‘Kala Ghoda’ brands.
The merger of the Consumer Products Business of Tata Chemicals Limited with TGBL is on schedule and after shareholders’ approval, is expected to achieve full closure by end of the current financial year.
In the international market, the company saw volume growth both in branded tea and coffee in key markets of UK, US and Canada.
Tetley recently launched a strategic master brand refresh campaign in the UK.
The brand is aiming to revitalise the tea category and strengthen its position in tea with the ‘Now we’re talking’ campaign.
Tetley Cold Infusions was launched in Australia.
Ajoy Misra, Managing Director & CEO of Tata Global Beverages said, “The company reported steady revenue growth in the last quarter. Group Net Profit excluding the impact of one off items recorded a growth of 45% during the quarter. The India business recorded continued value and volume growth. Our flagship brands in India recorded good growth and we will continue to focus on white space opportunities in the Indian market. Our international markets reflected volume growth in both tea and coffee. We will continue to strengthen our innovation agenda while further strengthening our core brands. Our JVs continue to perform well and have posted good revenue growth in the quarter.”
Image Credit: Tata Global Beverages/company website
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