Results for the quarter and year ended March 2017

Consolidated Results:
 

Income from Operations, for the year at Rs 6780 Crores up by 2%

Profit before Tax and Exceptional items for the year at Rs 657 crs up by 31%

Group Consolidated Net Profit for the year at Rs 455 Crores is significantly higher as compared to previous year.

Tata Global Beverages Ltd. today announced its results for the quarter and year ended March 2017.

For the quarter, Income from operations at Rs 1674 crores increased by 5% as compared to corresponding quarter of the previous year. At previous year exchange rate the increase is 7%. Profit before tax and exceptional items at Rs 140 crores is higher by 19% as compared to the corresponding quarter of the previous year despite higher advertising spends. Group consolidated net profit is significantly higher than the prior year due to lower exceptional expenditure in the current year.

For the year, income from operations at Rs 6780 Crores increased by 2% as compared to the corresponding year. At previous year exchange rate the increase is 3%. Profit before tax and exceptional items at Rs 657 Crores is higher by 31% reflecting higher sales, good cost management, lower commodity costs and lower interest cost. Group Consolidated net profit also reflect significant improvement over the prior year.

The results for the quarter and full year is reported under Ind(AS). Group Consolidated Net Profit of the previous year as well as of the corresponding quarter of the previous year, as reported under previous GAAP, had profit from sale of non-core equity investments of Rs 328 Crores, which under Ind AS have been accounted under retained earnings as opposed to it being reflected under Profit and Loss statement in the erstwhile GAAP.

The year saw strong focus on business growth through innovative product launches, impactful marketing campaigns and category expansion.

Leveraging the growing health and wellness trend, Tetley Super Green Tea- green tea fortified with vitamins, was launched in India last year, following its successful launch in the UK. Tata Tea Veda and Tetley Balance were launched in India and Canada respectively. This product range was inspired by the ancient science of Ayurveda and contains the benefit of herbal ingredients. The Tata Tea brand launched a powerful new version of its Jaago Re campaign in India, urging people to stop reacting after tragedies hit and instead start ‘Pre-acting’, and prevent these issues from happening. The campaign is seeing very good response with significant traction in social media. Celebrating 180 years of tea blending, the Tetley Indulgence range was launched in the UK. The range consists of black teas with indulgent flavor twists such as gingerbread and spiced apple, inspired by UK’s favourite treats. In the USA, Good Earth tea was re-launched. The new range consists of premium whole ingredient teas in loose leaf and pyramid sachet format and available in a wide variety of brews from straight and flavoured black and green teas to flavored oolong and fruit & herbal teas. The re-launch uses a direct-to-consumer platform – helping retail the brand via the website’s in-house shop.

In the coffee segment, Eight O’Clock coffee in the USA launched a new ‘Infusions’ line with a multi experiential marketing campaign. Infusions Alert is blended with caffeine and guarana – for a bold, robust hi-caffeine brew while Infusions Relax is blended with chamomile and lavender cuts for those looking for a relaxing decaffeinated coffee experience. In India, Tata Coffee Grand launched new SKUs and a Roast & Ground variant in Tamil Nadu and Kerala.

In the water segment, our premium offering-Himalayan natural mineral water launched a sparkling variant in select markets and also piloted ‘Orchard Pure’ flavoured water in Delhi/NCR. Tata Gluco Plus further strengthened its product offerings with the launch of Jeerai Sip (Cumin flavor) and ‘Panneer Surge’ (Rose flavor) offering consumers a product which provides instant energy in flavours they’re familiar with.

Ajoy Misra, Managing Director and CEO of Tata Global Beverages said “Tata Global Beverages is targeting growth by leveraging key trends such as health and wellness, premiumization and convenience. During the year, we’ve enhanced focus on innovation across categories to deliver exciting new products. We’re tapping white space geographies while strengthening our brands in existing markets and investing in strong marketing campaigns. In the last year, we’ve significantly expanded our offerings in the green and fruit & herbal tea segment and are steadily adding to our portfolio in branded coffee and functional water.”