November 14, 2017
Tata Global Beverages announces results for quarter ended September 2017
- Group revenue from operations at Rs1,692 crore, up 6 percent in underlying currency.
- Group profit before exceptional items at Rs208 crore, up 23 percent
- Group consolidated net profit at Rs154 crore, up 11 percent
Tata Global Beverages (TGB), today, announced its results for the quarter ended September 2017.
For the quarter, revenue from operations at Rs1,692 crore, growth of 6 percent in underlying terms. Profit before exceptional items was at Rs208 crore, higher by 23 percent as compared to the corresponding quarter of the previous year due to improved operating performance, good cost management and lower finance costs.
Group consolidated net profit for the quarter was recorded at Rs154 crore, higher by 11 percent as compared to the corresponding quarter of the previous year, reflecting higher profit before exceptional items, partly offset by exceptional expenditure.
TGB has completed the restructuring of its Russia operations, resulting in the sale of two of the company’s overseas subsidiaries (Sunty LLC and Tea Trade LLC), as on November 3, 2017. The quarter saw a number of new product launches across geographies and continued investment to strengthen our brands.
In India, there was strong focus on the second phase of the Tata Tea Jaago Re campaign Alarm Bajne se Pehle Jaago Re, which was launched earlier this year. India market is also evaluating the out-of-home beverage space, with the recent pilot launch of its first tea café Tata Cha in Bengaluru.
Tetley in UK saw market share gains, primarily driven by its focus on the non-black tea category. The brand is celebrating its 180th anniversary this year with a series of initiatives to further drive its heritage, quality and expertise credentials. In the Middle East, two new variants of loose tea – Tetley Strong and Tetley Gold were launched to further strengthen the brand portfolio.
Tata Starbucks, the joint venture between TGB and Starbucks Coffee Company, celebrated the opening of its 100th store in India, located in Mumbai, and its five-year anniversary in India. Eight O’Clock Coffee in the US launched a limited edition called Pumpkin Spice for the autumn season. This medium roasted flavour captures the essence of the season with subtle cinnamon spice, maple brown sugar, and classic pumpkin.
The water portfolio made good progress during the quarter driven by volume growth and acquisition of new key accounts. TGB’s premium natural mineral water brand Himalayan will now enter the US market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company® to distribute and market the brand. This makes Himalayan, which is backed by the trust and credibility of the Tata brand, one of the first premium Indian FMCG brands to target the broader American audience.
Ajoy Misra, managing director and CEO, TGB, said, “We are pursuing an aggressive profitable growth strategy of strengthening our core brands, innovative new launches, category expansion and rationalising non-profitable businesses. The last quarter has seen significant profit growth driven by improved operating performance and good cost management. We will continue to innovate in tea, coffee and water with new blends and beverage experiences. Our joint ventures have clocked good growth during the quarter and are steadily expanding. ”