Results for Quarter ended December 2014

Consolidated Results:

Income from Operations for the quarter at Rs 2144 crs, up by 3%
Profit from ordinary activities before tax at Rs 146 crs up by 6%

Tata Global Beverages Ltd. today announced its results for the quarter ended 31st December 2014. The company reported a steady growth in revenue and maintains operating profits as compared to the same period in the prior year. Both tea and coffee segments performed well.
 

For the quarter, Income from operations at Rs 2144 crores increased by 3% as compared to the corresponding quarter of the previous year. Profit from operations at Rs 161 crores is 2% lower than the corresponding quarter of the previous year. The decrease in Profit from Operations is mainly attributable to lower profits in the plantation business due to lower crop available for sale. Though Profit from ordinary activities before tax at Rs 146 crores is higher than the corresponding quarter of the previous year, Group Consolidated Net Profit at Rs 84 crores is lower mainly on account of a one-time tax credit of Rs 46 cores accounted in the corresponding quarter of the previous year.

Tata Global Beverages continues to strengthen its focus on the green tea category and grow its coffee and water businesses.

In India, the Company retains market leadership in branded tea and has recorded its highest ever monthly production in December. There is exponential growth in the green tea segment. Tata Global Beverages has a portfolio of green tea brands across consumer segments in India, with Tetley Green Tea and Tata Tea Acti Green. In the UK, we recently launched a range of Tetley Super Green Teas in delicious flavours. They are the first functional green teas in the UK with proven health benefits.  The range consists of Tetley Super Green Tea Immune with added vitamin C for immune system support and Tetley Super Green Tea Boost with vitamin B6 to reduce tiredness. The ‘Quality Cuppa’ campaign in UK showcased Tetley’s tea blending expertise and reinforced its credentials in delivering quality products.

In Canada, a premium line of Specialty teas, called the Tetley Signature collection was launched in January.  This range was created to reinforce the brand’s leadership in specialty teas in Canada and is available in four fun flavours- High Tea ( Black Tea with Vanilla), Keep Calm & Sip On (Camomile, Spearmint & Orange), Mint To Be (Peppermint, Spearmint & Apple Mint), Citrus Kiss (Green Tea with Lemon & Grapefruit).

In the water segment, Tata Water Plus- India’s first nutrient water, Tata Gluco Plus, available in five exciting flavours and Himalayan natural mineral water, which recently launched a sparkling variant, are seeing good market response and focusing on expanding reach.

Tata Starbucks – a joint venture between Tata Global Beverages and Starbucks now has 65 Starbucks stores spread across Mumbai, Delhi NCR, Bangalore, Pune, Chennai and Hyderabad. The stores continue to witness very good customer response. Eight O’ Clock coffee K cups in the USA, are making good progress in the fast growing pods market.

Mr. Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said – “We will focus on growing segments such as green tea, specialty teas, functional water and pods while continuing to strengthen our core markets & brands, based on key consumer trends.

We remain committed to sustainable growth through innovation and strengthening our brands in key markets, in the face of a challenging market environment and economic volatility in some parts of the world.”