Tata Global Beverages announces results for the first quarter 2013-14

Consolidated Results: Income from operations at Rs 1813 crores up by 5%.

Group Consolidated Net Profit at Rs 112 crores is up 44%

Tata Global Beverages Limited today announced its results for the year ended 30th June, 2013. It reported steady growth in revenues and significant increase in operating profits.

For the year, the Company’s consolidated total income from operations at Rs 1813 crores is 5% higher than the corresponding period of the previous year reflecting improved performance in most major businesses. Profit before exceptional items at Rs 176 crores is 15% higher than the corresponding period of the previous year reflecting underlying performance and the impact of cost interventions. After considering exceptional items Group Consolidated Net Profit is 44% higher than the same period in the previous year.

Tata Global Beverages continues to create magical beverage moments for consumers in the tea, coffee and water categories through its exciting products, strategic alliances and innovative marketing campaigns.

In Poland, Tetley and Vitax launched a range of exciting flavours in Cold Brew teas which are specially created to brew in cold water. Tetley Tea with Vitamin C was also launched. This is a black tea based product which contains additional ingredients that are perceived as a natural source of Vitamin C, such as lemon, honey, ginger and elderberry. In Kuwait, Tetley drawstring teabags were launched with customized blends, urging consumers to ‘Squeeze more out of life.’ The Tetley Tassimo T Discs launched earlier in Canada for use in Tassimo singe serve brewing machines, continue to receive excellent consumer response. In France, the Tetley range which was launched with new packaging emphasizing the British heritage of the brand, is making very good progress. In India, Tata Tea partnered with IIFA (International Indian Film Academy Awards) to launch the ‘Power of 49’ campaign. Women constitute 49% of the voter base in India. The objective of this campaign is to awaken women to the power within them and encourage them to exercise their right to vote at the next general elections. This marks a new phase in Tata Tea’s iconic ‘Jaago Re’ series of campaigns.

Tata Water Plus- India’s first nutrient water continues to consolidate its presence in Tamil Nadu and Andhra Pradesh. The new campaign launched last quarter which encourages consumers to treat every occasion of thirst as an occasion to improve one’s health, has helped strengthen the brand further and drive significant growth.

Eight O Clock Coffee K cups which were launched last year for Keurig single serve brewing machines in the USA, continue to make strong inroads in the market and have gained enthusiastic consumer acceptance. Tata Starbucks- a joint venture between Tata Global Beverages and Starbucks now has 18 Starbucks stores across Mumbai and Delhi. The stores are seeing excellent customer response. Tata Coffee inaugurated a premium coffee extraction plant at its Instant Coffee manufacturing facility in Theni, Tamil Nadu. The new extraction plant will help Tata Coffee position its Freeze dried coffee product at premium levels and increase its overall capacity.

Harish Bhat, Managing Director and CEO of Tata Global Beverages, said – “We are happy to report steady growth in a very competitive global market. Growth trends have been quite different across continents, with Europe presenting the most challenging environment. We continue to focus on product innovations in tea, coffee and water, to bring joy and great value to millions of our consumers across more than forty countries. We will also invest behind our strong portfolio of brands, including Tetley, Tata Tea, Eight O’Clock Coffee, Tata Water Plus and Himalayan water. Consumers can look forward to many more exciting products from our Company, in the months and years ahead.”