Tata Global Beverages announces results for FY 2012-13

Tata Global Consolidated Results: Income from operations at Rs 7351 crores up by 11%.

Profit from operations at Rs 663 crores is up 26%

Tata Global Beverages Limited today announced its results for the year ended 31st March, 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 7351 crores is 11% higher than the prior year reflecting improved performance coupled with favourable foreign exchange translation impact. Operating profit at Rs 663 crores is 26% higher than the previous year reflecting improved performance in major markets and favourable impact of cost interventions.

For the quarter ended 31st March 2013, Income from operations at Rs 1849 crores increased by 6% as compared to the corresponding period of the previous year reflecting improved performance coupled with favourable foreign exchange translation impact. Profit from operations at Rs 193 crores is 19% higher than the corresponding period of the previous year. The results for this quarter include the impact of higher spend on advertising compared with the same period in the previous year. After considering exceptional items Profit after tax is 56% higher than the same period in the previous year. Group consolidated net profit for the quarter at Rs 96 crores is higher by 77% as compared to the corresponding period of the previous year.

Tata Global Beverages continues to make steady progress in the tea, coffee and water categories, through innovation, category expansion and strategic alliances.

The Company’s focus on product innovation continues to be very strong. In the UK, a new blend, Tetley Estate Selection, incorporating the best of Kenyan teas was launched. Tetley’s new “Blend of Both” launched earlier in the UK has also made good progress. This product was created to deliver the delicious taste of black tea with all the benefits of green tea. In Canada we launched two premium tea products- Tetley Ceylon and Tetley English Breakfast tea. In the Green tea category, we launched an exciting new blend in UK- Tetley mango & passion fruit tea. Eight O Clock coffee in the US launched a limited edition Chocolate Mint flavor, a blend of refreshing peppermint swirled with dark chocolate. The Tetley fruit & herbals range launched earlier in Australia, offers a tea for every moment, and has seen good consumer response.

Tata Water Plus- India’s first nutrient water has been launched in Tamil Nadu and Andhra Pradesh in a one litre PET bottle with a new packaging design. The new design incorporates copper hues to highlight the nutrients present in the water. The launch has been supported by an exciting 360 degree campaign. Tata Gluco +, an innovative glucose based drink which provides refreshment and energy, is now available in three exciting flavours- Lemon, Orange and Mango. The Mango flavour was launched recently and has seen very good market response.

In coffee, Tata Global Beverages continues to create memorable beverage moments for its consumers through Tata Starbucks- a joint venture between Tata Global Beverages and Starbucks Coffee Company. Tata Starbucks now has 13 stores in India across Mumbai and Delhi. The stores have seen excellent consumer response. In a key partnership milestone between the Starbucks Coffee Company and Tata Coffee Limited, a new roasting and packaging plant was inaugurated at Kushalnagar in Coorg, Karnataka. This world-class facility enables roasting and packaging of green coffee beans for Starbucks stores in India.

Harish Bhat, Managing Director and CEO of Tata Global Beverages, said –

“We are very pleased to report yet another quarter of good growth and strong profitability. This has been achieved on the back of strong product innovation in all our three categories, tea, coffee and water. Our focus on bringing our consumers delightful new blends continues to remain our topmost priority. The forthcoming quarters will witness many new launches in this direction.

I would like to point out that the global operating environment has varied significantly between continents and countries. Notwithstanding this, we have a robust strategy in place for each market, and we have prioritized sharp execution of that strategy as the route to sustained success. We are happy to report that our brands are in good health, and continue to receive constant attention and investment, even as we create new moments of magic for all our consumers.”