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Results for the quarter ended December 2018

Consolidated Results:

Revenue from Operations for the Quarter at Rs.1913 crores increased by 11%

 Tata Global Beverages Ltd. today announced its results for the quarter ended December 2018.

Consolidated Revenue from Operations increased by 11%, compared to the corresponding quarter of the previous year. At constant currency, revenue growth is 6%. Profit before tax at Rs 176 Crores is lower as compared to corresponding quarter of the previous year mainly due to higher commodity cost, increased spends behind brands and discretionary/one off items. The Group net profit for the quarter is lower mainly on account of deferred tax credit of Rs 53 Crores recognised in corresponding quarter of the previous year arising on account of changes in US tax rates, and lower share of profits from Associates and Joint Ventures.

Some of the key Business updates for the Quarter are:

    India update

  • The India Business clocked a 7% volume and value growth of 5% across its brands.
  • Tata Tea Gold was recently relaunched with a bold new pack design in a premium and sophisticated golden hue, backed by an impactful TV campaign.
  • Tetley Green Tea continued to record healthy double digit growth backed by its ongoing marketing campaign.
  • Tata Cha - TGB’s pilot in the Out of Home beverage space, now has 6 stores in Bangalore spanning 3 different formats- high street, kiosk and abbreviated. The latest store opened recently at Phoenix Mall in Whitefield, and all six stores have received very good consumer response.
  • International Update

  • Tetley Super Teas in Canada have clocked excellent growth in the last quarter, backed by a strong marketing campaign. These are Canada’s first line of teas fortified with vitamins and minerals.
  • In the US, Eight O’ Clock Coffee saw continued improvement in K Cups performance driven by change in the pods category operating model.
  • Tetley in the UK had a value growth of 14% (underlying growth of 6%) as our market share recorded growth in the mainstream black tea segment.
  • Tetley Cold Infusions, a recent launch in UK continued to clock good growth during the quarter.
  • JVs Update

  • Tata Starbucks has clocked a growth of ~30% in revenues and now has 136 stores across 8 cities in India. The stores continue to receive very good consumer response.
  • NourishCo recorded a growth of ~30% in sales during the quarter, with continued focus on the national rollout of Tata Gluco Plus. Its recent launches in West Bengal and Jharkhand have received encouraging response.

 

Ajoy Misra, Managing Director and CEO of Tata Global Beverages said “The Company has clocked steady revenue growth in the last Quarter. Profits have been impacted due to higher commodity costs, increased brand investment and one-off items. The India business continues to record good growth and we are focused on further strengthening its growth trajectory. We are investing behind our key brands in international markets in line with market trends and consumer preferences. Our JVs have performed well and have posted good sales growth in the last quarter.”

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

 

 

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