Quarter 3 Results – 2010/2011
STANDALONE : Total operating Income at Rs 475 crores up by 5%
Profit before Tax at Rs 65 crores up 23%
CONSOLIDATED : Consolidated operating income at Rs 1608 crores up by 8% at constant exchange rates.
Indian Subsidiary enters into a Non Binding Memorandum of Understanding with Starbucks Coffee Company
Overseas subsidiary increases stake in The Rising Beverage Company LLC, owner of ActivateTM
Tata Global Beverages Ltd. announced its results for the quarter ended December 31, 2010 this afternoon.
Tata Coffee Ltd, the Company’s Indian subsidiary, has entered into a non binding Memorandum of Understanding with Starbucks Coffee International Inc (Starbucks) for a potential strategic collaboration in areas of sourcing of coffee beans, utilisation of coffee roasting facilities to meet the requirement of Starbucks for their proposed retail operation in India and other countries. This arrangement is subject to the execution of definitive agreements by Tata Coffee and Starbucks.
During the quarter the Company’s overseas subsidiary increased its stake in The Rising Beverage Company LLC, the owner of ActivateTM a performance beverage in USA, from 10% to 31% calculated on a fully diluted basis. The subsidiary has the option to further increase its stake in this Company.
The Company’s Consolidated total operating income for the quarter at Rs. 1608 crores increased by 4% as compared to the corresponding period of the previous year despite adverse translation impact. At constant exchange rate the underlying growth is 8%. The Company continues to focus on building new capabilities and invest behind new products and brands. The profit before exceptional has been impacted by higher commodity costs, higher expenditure on growth initiatives and lower interest earnings. Accordingly, Profit before and after Tax is lower compared to the corresponding period of previous year.
The stand alone Tata Global Beverages Ltd results for the quarter reported the total operating income at Rs 475 crores, an increase of 5%, attributable to a strong brand performance. Profit before exceptional items at Rs 65 crores was higher by 23% over the corresponding period of the previous year due to higher dividend from subsidiaries and lower interest costs. Accordingly, the Profit before and after Tax is higher as compared to the corresponding quarter of the previous year.
Issued By : L Krishnakumar
About Tata Global Beverages
Tata Global Beverages is a global beverage business and the world’s second largest tea company. The group’s annual turnover is US$1.5bn and it employs around 3,000 people in over 40 countries worldwide. The company focuses on ‘good for you’ beverages and has a stable of innovative regional and global beverage brands, including: Tata Tea, Tetley, Himalayan natural mineral water, Good Earth and Eight O’clock coffee.