May 30, 2017
Tata Global Beverages announces results for the quarter and year ended March 2017
- Income from operations for the year at Rs6780 crore, up 2 percent
- Profit before tax (PBT) and exceptional items for the year at Rs657 crore, up 31 percent
- Group consolidated net profit for the year at Rs455 crore, significantly higher than the previous year.
Tata Global Beverages (TGB) today announced its results for the quarter and year ended March 2017.
For the quarter, income from operations was at Rs1674 crore, a five percent increase compared to the corresponding quarter of the previous year. At previous year exchange rate the increase is seven percent. PBT and exceptional items are at Rs140 crore – a 19 percent rise 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 stood at Rs6780 crore, which was a two percent year-on-year rise. At previous year exchange rate the increase is three percent. PBT and exceptional items are at Rs657 crore – a rise of 31 percent – reflecting higher sales, good cost management, lower commodity costs and lower interest cost. Group consolidated net profit also reflects significant year-on-year improvement.
The results for the quarter and full year are 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 Rs328 crore, which under Ind-AS have been accounted under retained earnings as opposed to it being reflected under the 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, and following its successful launch in the UK, Tetley Super Green Tea – green tea fortified with vitamins – was launched in India last year. 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 receiving an extremely 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 flavour twists, such as gingerbread and spiced apple, inspired by UK’s favourite treats. In the US, Good Earth tea was re-launched. The new range consists of premium whole ingredient teas in loose leaf and pyramid sachet format and is available in a wide variety of brews from straight and flavoured black and green teas to flavoured oolong, and fruit and herbal teas. The relaunch uses a direct-to-consumer platform, helping retail the brand via the website’s in-house shop.