Results for the Quarter ended June 2019

31 July 2019 609 words 2-MINUTE READ

Revenue from operations increased by 5% driven by improvements in both branded and non-branded business while Group net profit increased by 11%

Consolidated Results:

Revenue from Operations for the Quarter at Rs.1897 Crores, increased by 5% Group Net Profit for the Quarter at Rs. 142 Crores, increased by 11%span>

Tata Global Beverages Ltd. today announced its results for the quarter ended June 2019.

Revenue from operations increased by 5% driven by improvements in both branded and non-branded business.
Profit before taxes increased by 3%. While profits of international and non-branded businesses were higher, profits in India were lower due to higher commodity costs and increased spends behind brands and lower exceptional items.
Group net profit reported an increase of 11%

Some of the key Business updates for the Quarter are:

India update

For the quarter, the India tea business clocked an 8% volume growth and 7% value growth.
Our flagship brands Tata Tea Premium, Agni and Spice Mix saw double digit value growth, led by focused promotions.
Tata Steel Special Economic Zone Ltd. (TSSEZL) held a ground-breaking ceremony to start construction of an industrial shed for a TGB tea packing unit with 36 million kgs capacity. The unit is expected to be operational by end of 2020.

International Update

For the quarter, the UK, USA and Canada businesses recorded volume growth.
Tetley Cold Infusions- a recent innovation which takes tea out of the hot consumption category and into a new usage occasion, clocked good market share growth in UK.l.
Tetley Super Teas in Canada have gained market share in the Specialty tea segment. These are Canada’s first line of teas fortified with vitamins and minerals.
In the US, Eight O’ Clock Coffee launched ‘Flavors of America’ and the ‘Barista Blends’ range made with 100% Arabica beans that are uniquely roasted and blended with flavors to deliver an enhanced coffee drinking experience.

Other businesses Update

Tata Coffee recorded improved sales with higher sales in the Instant Coffee division.

JVs Update

Tata Starbucks clocked a b ~30% growth in revenues for the Year. It added 30 new stores during the Year, taking the current store count to 146 stores across India. It recently opened its largest coffee forward store in Bengaluru, celebrating every aspect of the coffee journey through live coffee brewing experience.
NourishCo recorded a good topline growth of ~10% during the year, with continued focus on the national rollout of Tata Gluco Plus. Himalayan natural mineral water was launched in a premium glass bottle packaging for both its still and sparkling variants.

Acquisition of branded tea business of Dhunseri Tea & Industries Limited (DTIL)

The Company had in April 2019 entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries Limited. The Board of Directors in its meeting held on July 31, 2019 approved entering into binding agreements
The Dhunseri branded tea business currently has the brands “Lalghoda” and “Kalaghoda” which are among the leading local brands in Rajasthan, a market dominated by local players. This move is in line with Tata Global Beverages’ ambition to grow its branded tea business in India.

Ajoy Misra, Managing Director & CEO of Tata Global Beverages said “The Company clocked steady revenue and profit growth in the last quarter. The India business recorded continued value and volume growth. Our flagship brands in India recorded a double digit growth and we will increase our focus on white space markets and the opportunities they present. Our international markets have recorded a mixed performance with volume growth in the UK, USA and Canada despite competitive intensity. We will further strengthen our innovation agenda across markets in addition to investing behind our core brands. Our JVs have performed well and have posted good revenue growth in the quarter.”

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