Results for the Quarter ended 31st December 2019

Results for the Quarter ended 31st December 2019
04 February 2020 664 words 4-MINUTE READ
Q3-Results
Corporate
Financial-Results
Results for the Quarter ended 31st December 2019

Consolidated revenue from Operations for the Quarter at Rs 1962 crores is up by 4% in constant currency

India branded tea business for the quarter is up by 6% in value and 7% in volume terms

Group Net Profit for the Quarter at Rs 136 crores up by 25%

Tata Global Beverages Ltd. today announced its results for the Quarter ended December 2019.

For the quarter, Revenue from operations increased by 3% as compared to corresponding quarter of the previous year driven by improvement in branded and non-branded business. At constant currency revenue growth is 4%.

Profit before tax at Rs 196 Crores is higher by 11% as compared to corresponding quarter of the previous year mainly due to revenue and operational improvement and lower commodity cost partly offset by increased spends behind brands.

Group Consolidated Net Profit is higher by 25% as compared to corresponding quarter of the previous year aided by lower tax rate and improvement in the performance of Associates & Joint Ventures.


    Some of the key Business updates are:

    India update

    • For the Quarter, the India branded tea business clocked a growth of 7% in volume and 6% in value terms.
    • Our national brands saw growth led by Tata Tea Spice Mix, Tata Tea Agni and Tata Tea Premium.
    • Tata Tea Premium, the flagship brand for the India Business, kicked off its restage with the launch of a localized multi-regional campaign across its core markets. The restage aims to reinforce brand love by evoking regional pride, while emphasizing its national stature.

    International Update

    • The UK and US markets launched new products aimed at revitalizing the black tea market. In Canada, we recorded volume growth in branded tea.
    • Tetley continued its 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 in UK launched an ‘Ethnic’ range of specialty Indian flavoured tea aimed at the South Asian diaspora living in the UK and Europe. The range offers an authentic ‘Desi Chai’ experience in a tea bag format.
    • Our tea brand in the USA, Good Earth tea, introduced a range of Ayurveda teas to further strengthen its wellness proposition. Good Earth Ayurveda comprises of three caffeine-free teas carefully crafted to help promote balance between mind, body and spirit for holistic well-being.

    Other Businesses Update

    • The merger of the Consumer Products Business of Tata Chemicals Limited (TCL) with Tata Global Beverages Limited is on schedule and is expected to be completed during the fourth quarter of this financial year. The Hon’ble National Company Law Tribunal (“NCLT”), Kolkata Bench, has by its order dated January 8, 2020 sanctioned the Scheme. The Scheme will become effective on completion of various activities, the last of which is filing of the certified copies of the NCLT orders for TCL and the Company with the respective Registrars of Companies, as provided in the Scheme.
    • In January 2020, we completed the sale of the Tata Global Beverages Czech Republic a.s, including trademark rights, to Dr. Müller Pharma, an established Czech company respected in the fields of medicine, cosmetics and food supplements.

    JVs Update

    • Tata Starbucks clocked a 27% growth in revenue for the Quarter, opening 28 new stores. It now has 174 stores spread across 11 cities in India.
    • NourishCo recorded positive momentum for the Himalayan brand. There is continued focus on the national rollout of Tata Gluco Plus.

    Ajoy Misra, Managing Director & CEO of Tata Global Beverages said “The Company recorded steady revenue growth despite challenging macroeconomic conditions in India and some key international markets. Our new launches in India are geared towards unlocking white space opportunities through greater localization. In international markets, we have launched products aimed at revitalizing the black tea category. Our focus on health and wellness continues and we will further strengthen our innovation agenda while investing behind our core brands.”

    For more information, please refer to the full results by clicking here.