For the quarter, revenue from branded business increased by seven per cent, and after excluding the impact of business restructuring and at constant currency the increase is eight per cent, as compared to the corresponding quarter of the previous year. However non-branded sales were lower than the corresponding quarter of the previous year.
Consolidated profit before exceptional items at Rs 235 crore is higher by eight per cent compared to the corresponding quarter of the previous year due to the improved performance of the branded business and higher other incomes, partly offset by the adverse performance of the non-branded business.
The group net profit for the quarter was impacted by exceptional items, and excluding the impact of these items, the group net profit grew by eight per cent.
The quarter saw continued focus on innovative product launches and initiatives to strengthen our core brands with good volume growth in the India business.
Some of the key business updates for the quarter are as follows:
India updates
• Tata Tea launched variants under its Chakra Gold and Kanan Devan brands to help drive growth in key regional markets in South India
• Tata Tea Chakra Gold Activ+ is a novel combination of kokum and amla, blended with Assam tea, and Tata Tea Kanan Devan Duet is a unique blend combining the taste of black tea and the goodness of green tea
• Tetley Green Tea in India clocked good improvement in market share, following the launch of its new television commercial
• Tata Coffee Grand in India saw good growth both in the Hot Tea Shop (HTS) segment as well as the Roast & Ground (R&G) segment
International updates
• In the United Kingdom, Tetley is the highest-ranked tea brand in a recent ranking of the most chosen beverage brands by Kantar Worldpanel, a global expert in shoppers’ behaviour
• The Kantar brand footprint report also mentioned that Tetley has increased the number of younger shoppers in the 18-34 years category and tapped into consumer demand for health benefits
• In the last month, Tetley has been rated number one in volume market share by Nielsen
• Tetley Cold Infusions, designed to be brewed in cold water for a refreshing drink, was recently launched in the UK and is available in a range of delicious fruit flavours
• Eight O’ Clock Coffee in the United States saw good sales improvement aided by the pods category and higher private label sales
Joint venture (JV) updates
• Tata Starbucks launched three new stores during the quarter. There are now a total of 119 Starbucks stores in India. To commemorate 150 years of the Tata Group, Tata Starbucks launched a limited-edition beverage Tata 150. It is a blend of signature Starbucks espresso and the classic Italian dessert, the Tiramisu Cake
• Nourishco: Tata Gluco Plus continues to clock steady growth. Tata Water Plus showed improved performance during the quarter aided by distribution expansion
Ajoy Kumar Misra, managing director and chief executive officer, Tata Global Beverages, said, “Last quarter saw a number of new product launches focused on the health and wellness and convenience trends. We’ve seen steady growth in operating profits, aided by improvement in our operating performance. Our JVs and associate companies have performed well. We will continue to focus on aggressive profitable growth through base business rejuvenation, innovation and cost-effectiveness.”
