Results for quarter ended June 2012
CONSOLIDATED : Total Operating income for quarter at Rs 1725 crores up by 18%.
Profit before exceptional items for the quarter at Rs 153 crores up by 55%
STANDALONE : Total operating Income for the quarter at Rs 570 crores up by 10%.
Profit from operations for the quarter at Rs 76 crores up by 31%
Tata Global Beverages Ltd. announced its results for the quarter ended June 30, 2012 this evening. It reported significant increase both in turnover and operating profits.
The Company’s Consolidated total operating income for the quarter at Rs. 1725 crores was 18% higher than the corresponding quarter of the previous year reflecting improved performance in most major markets coupled with favourable foreign exchange translation impact. Profit from ordinary activities after finance cost but before exceptional items at Rs 153 crores is 55% higher than the corresponding quarter of the previous year reflecting the improved operating performance. Profit from ordinary activities before tax at Rs 148 crores and profit after tax at Rs 99 crores are lower than the corresponding period of the previous year primarily due to the impact of exceptional income. Exceptional income in the corresponding quarter of the previous year represents profit arising on sale of non core investments partially offset by exceptional expenditure.
Tata Global Beverages continues to make steady progress in category expansion and innovation. Tata Water Plus- India’s first nutrient water - now has a presence in Tamil Nadu and Andhra Pradesh. Supported by a 360 degree marketing campaign, the brand is fulfilling its promise of going beyond quenching thirst to promoting everyday good health.
Eight O’Clock Coffee entered the fast growing and ultra convenient world of single serve coffee through a partnership with Green Mountain Coffee Roasters, Inc. (GMCR), a leader in specialty coffee and single serve brewing systems in North America. The agreement will make Eight O’Clock Coffee, Tetley tea, and Good Earth tea available for GMCR’s Keurig Single Cup Brewing systems.
Tetley Chai Latte an indulgent tea drink, giving consumers an alternative to powdered milk coffees and hot chocolates, posted a strong performance in Australia along with distribution gains. This unique product is also planned to be rolled out in other key markets.
In the stand alone Tata Global Beverages Limited results, the total operating Income for the quarter at Rs 570 crores increased by 10% over the corresponding quarter of the previous year driven by higher volumes and better price realizations. Profit from operations at Rs 76 crores is higher by 31% than the corresponding quarter of the previous year driven by improved performance in the branded tea operations. The Profit before Tax at Rs 80 crores and the Profit after Tax at Rs 56 crores are lower than the corresponding quarter of the previous year primarily due to the impact of exceptional income. Exceptional income in the corresponding quarter of the previous year represents profit arising on sale of non core investments partially offset by exceptional expenditure.
Harish Bhat, Managing Director and CEO of Tata Global Beverages Ltd., said – “Our operating results for the first quarter of this financial year represent significant progress over the same quarter of the previous year. We have seen good volume growth and performance in key global markets including the United Kingdom and India, notwithstanding selective price increases which were implemented in response to higher commodity costs. In addition, we continue to drive a range of operating efficiencies, which is yielding good results.
Our focus on category expansion and innovative new beverage products such as Tata Water Plus and Tetley Chai Latte will continue to drive our Company’s growth. These beverages are designed to delight our consumers, and add significant value to their lives. Alongside these products, our key strategic alliances will also create big new opportunities for the future.”