November 15, 2016
Tata Global Beverages announces results for quarter ended September 2016
- For the second quarter in a row, Tata Global Beverages announces significant increase in operating profits and group net profits
- Consolidated results for the quarter: Profit from operations at Rs162 crore up by 47 percent; group consolidated net profit at Rs140 crore up by 60 percent
Tata Global Beverages (TGB) today announced its results for the quarter ended September 2016.
For the quarter, income from operations at Rs1626 crore is marginally behind the corresponding quarter of the previous year. While the underlying business saw volume growth, this was offset by price reductions and adverse impact of currency translation. However, on a YTD basis, income from operations reflect a marginal improvement as compared to previous year. For the quarter, profit from operations at Rs162 crore is higher by 47 percent than the corresponding quarter of the previous year mainly due to lower commodity costs and lower spends on new initiatives. Group consolidated net profit for the quarter at Rs140 crore is higher by 60 percent as compared to the corresponding quarter of the previous year reflecting both improved operating performance and better performance by joint ventures and associate companies.
The quarter saw a continued focus on the global health and wellness trend and innovative product launches.
Tetley in Canada recently launched the ‘Tetley Ayurvedic Balance’ range of teas. Working with Ayurvedic experts, the blends were carefully crafted to help consumers meet their need for balance at all stages of life. The product range comprises of three variants: Vata- a calming tea, Pitta- a cooling tea and Kapha - an invigorating tea.
TGB and Tata Trusts announced a partnership with Smile Train - the international children's cleft charity, to raise awareness and extend support for cleft lip and palate repair and comprehensive cleft care. The Tetley brand is amplifying this by running a digital campaign called, the ‘Tetley Smile Challenge’ across the UK, Australia, US and Canada to raise awareness among consumers about Smile Train and invite their participation. In India, TGB will further build on this partnership by using its unique ‘Gaon Chalo’ initiative to spread awareness about cleft lip and palate repair. This will help the initiative reach nearly 60 percent of the rural population.
Eight O’ Clock coffee in the US launched a new coffee Infusions line, which offers thoughtfully crafted coffees blended with added ingredients to help enhance your day. Through this launch, Eight O’ Clock is delivering an enhanced coffee drinking experience to consumers. The product is available in two variants - Alert and Relax. Infusions Alert is blended with caffeine and guarana – for a bold, robust hi-caffeine brew while Infusions Relax is blended with chamomile and lavender for those looking for a relaxing decaffeinated coffee experience. The launch is being supported through a multi-faceted marketing campaign.
Ajoy Misra, managing director and CEO, TGB, said, “The company recorded significant profit growth last quarter, despite a challenging market environment. Our product launches leverage the health and wellness trend across geographies. Consumers are seeking enhanced beverage experiences which are also healthy choices and we are leveraging this insight across our product categories. Our joint ventures Tata Starbucks and NourishCo continue to show steady growth and we are committed to growing them further.”