Results for Quarter ended December 2017
Consolidated Results for the quarter:
Group Revenue from operations at Rs 1730 crores, after excluding the impact
of sale of Russia business, is up by 3% in underlying currency.
Group Profit before Exceptional Items at Rs 218 crores up by 50%
Group Consolidated Net Profit at Rs 189 crores up by 31%
For the quarter, after excluding the impact of sale of the company’s business in Russia, the underlying Revenue from operations increased by 3%. Profit before exceptional items at Rs 218 Crores is higher by 50% as compared to the corresponding quarter of the previous year due to improved operating performance, good cost management, phasing of advertisement spends and lower finance costs.
Group Consolidated net profit for the quarter at Rs 189 crores is higher by 31% as compared to the corresponding quarter of the previous year reflecting higher profit before exceptional items coupled with lower tax expense, mainly due to a deferred tax credit of Rs 53 crores arising on account of restatement of deferred tax asset/liabilities due to reduction in the US tax rates, partly offset by higher exceptional expenditure.
During the quarter, Tata Global Beverages Limited has divested its holding in its overseas Associate, Estate Management Services Private Limited (EMSPL). Consequently, EMSPL ceases to be an associate of the Company with effect from December 28, 2017.
Tata Global Beverages developed a specially curated range of the finest Indian teas ‘Tata Tea 1868’ which was unveiled during the World Economic Forum (WEF) in Davos, Switzerland last month. The year 1868 refers to the year the Tata group was founded and the tea was developed to commemorate 150 years of the Tata group. The range has three blends of premium and differentiated Indian teas as a celebration of our unique diversity and tea drinking culture- Organic Hathikuli, Kashmiri Kahwa and Masala Chai.
The quarter saw continued focus on category expansion with new product launches while strengthening our base business.
In India, the Tata Tea Jaago Re campaign ‘Alarm Bajne se Pehle Jaago Re’ launched earlier this year progressed into its third phase with the ‘Champions of Tomorrow’ initiative focused on encouraging a sports culture among India’s youth. Tata Tea Masala Chai was launched in India and received good feedback. Tata Tea Gold was launched in the Bangladesh market. In the UK, building on the success of Tetley super teas, the brand entered the squash category with the launch of Tetley Super Squash- a blend of real fruit juices enhanced by added vitamins carrying approved health benefits. The product is available in three flavours- Sunshine with added vitamin D, Boost with vitamin B6 and Immune with vitamin C. In Australia, the Good Earth brand launched Kombucha- a tea based ready to drink product in three flavours- Passionfruit & lime, Pomegranate & acai and Lemongrass & ginger.
The water portfolio made good progress during the quarter. Tata Global Beverages’ premium natural mineral water brand ‘Himalayan’ clocked good growth. Tata Gluco Plus continues to show good results and recently launched a 300ml PET bottle variant in some core markets. Tata Starbucks continues to perform well with good sales growth and is poised to enter Kolkata this year.
Mr. Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said – “We are pleased to announce that Tata Global Beverages has recorded its seventh consecutive quarter of growth in operating profit and group net profit. Growth in the last quarter is primarily due to improved operating performance, lower finance costs and improved performance from our joint ventures and associate companies. We will continue to pursue aggressive profitable growth, innovation based on key trends and category expansion. ”
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