The beverage company reported impressive net profit of 44%, despite subdued revenue growth, largely due to cost interventions and exceptional items
Tata Global Beverages reported a 44% higher net profit during the June quarter on improved cost interventions. For the quarter to end-June, the Tata group company said its net profit rose to Rs84.57 crore from Rs56.1 crore as total revenues, including sales, increased to Rs692.9 crore from Rs576.84 crore, same period last year.
Harish Bhat, managing director and chief executive, said: "Growth trends have been quite different across continents, with Europe presenting the most challenging environment. We will also invest behind our strong portfolio of brands, including Tetley, Tata Tea, Eight O'Clock Coffee, Tata Water Plus and Himalayan water."
For the full year the company’s consolidated total income from operations stood at Rs1,813 crores, 5% higher for the same period, reflecting improved performance in most major businesses. Exceptional items for the quarter represents profit on sale of non-current investment of Rs32 crore, profit on sale of land of Rs2 crore and long-term initiatives aggregating to Rs5 crore.
According to the Tata group company, Eight O Clock Coffee K cups, which were launched last year for Keurig single serve brewing machines in the US, continue to make strong inroads in the market and have gained enthusiastic consumer acceptance. Tata Starbucks, a joint venture between Tata Global Beverages and Starbucks now has 18 Starbucks stores across Mumbai and Delhi. The stores are seeing excellent customer response. Tata Coffee inaugurated a premium coffee extraction plant at its Instant Coffee manufacturing facility in Theni, Tamil Nadu. The new extraction plant will help Tata Coffee position its Freeze dried coffee product at premium levels and increase its overall capacity.
At 3.40pm Thursday, Tata Global Beverages was trading 7.8% down at Rs147.2 on the BSE, while the benchmark Sensex was marginally down at 19,317.2.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
