Tata Global Beverages announced its results for the year ended March 31, 2012, this afternoon.
In India, the company has retained volume and value leadership due to a realignment of the marketing mix focusing on distribution as well as investment in brands. Tata Tea’s Soch Badlo marketing campaign to commemorate 25 years of the brand has struck a chord with consumers and increased brand pull. In Canada, the company continues to be volume and value leader. New chai blends: dark chocolate and vanilla bean, Perk high-caffeine orange pekoe, and Green Pomegranate tea launched earlier in Canada, are gaining distribution. Tetley Chai Latte, an exciting product combining both coffee and tea has done very well in Australia, and Tetley Red Bush continues to be a market leader in the UK. Tata Global Beverages' strategic alliances are a key element of its growth strategy. The company announced a joint venture with Starbucks recently to open Starbucks cafes across India. NourishCo, the company's JV with PepsiCo has launched Tata Water Plus — India’s first nutrient water — and Tata Gluco Plus, a glucose-based lemon flavoured drink, both of which have been well received.
The company’s consolidated total operating income for the year at Rs6,631 crore was 10 percent higher than the previous year, aided by improved performance in most major markets coupled with favourable foreign exchange translation impact. Profit after finance cost but before exceptional items at Rs551 crore is 14 percent higher, reflecting the improvement in the operating performance and lower finance costs. Profit from ordinary activities before tax and profit after tax are higher than the previous year by 16 percent and 48 percent respectively, mainly due to favourable impact of higher exceptional income and lower effective tax rate.
In the stand-alone Tata Global Beverages results for the year, total operating income for the year at Rs2,035 crore increased by 12 percent over the previous year driven by higher volumes and improved performance in branded tea operations. The profit before tax at Rs370 crore, and the profit after tax at Rs303 crore, are also higher compared to the previous year driven by improvement in operations, lower finance costs, higher exceptional income partly offset by lower other income.