Profit before tax, at Rs 189 crore, is marginally lower as compared to Rs 196 crore in the corresponding quarter of the previous year due to the higher commodity cost and higher investment behind brands and listings.
Group net profit for the quarter at Rs 184 crore is higher by 19 per cent than that for the corresponding quarter of the previous year on account of lower tax and higher profits from associates and joint ventures.
The quarter saw continued support on innovative products and initiatives to strengthen our core brands in the international business and good volume growth in the India branded business. The plantation business was impacted by lower realisation and lower crop.
Some of the key business updates for the quarter are that the India business clocked growth across its national as well as regional brands. Tetley Green Tea continued to grow market share, aided by the launch of its new television commercial earlier this year.
Cha by Tata Tea, TGB’s pilot in the out-of-home beverage space, opened its fourth store during the quarter at Church Street in Bangalore. All four stores have received a very good consumer response.
From an international perspective, Tetley Super Teas were launched in Canada with three variants, namely Immune, Boost and Antioxidant. These are Canada’s first line of teas fortified with vitamins and minerals.
In the United States, Eight O’Clock (EOC) Coffee clocked good growth in revenue, aided by the change in the pods category operating model.
The EOC plant in Landover, Maryland has been named one of the top champions of manufacturing by the Maryland Regional Manufacturing Institute (RMI). The recognition reflects EOC’s focus on automation, process improvement, training and development and employee engagement resulting in significant productivity growth.
In the United Kingdom, there has been continued focus on recent launches, Tetley Squash and Tetley Cold Infusions.
Tetley Iced Tea was launched in Portugal in a range of flavours to appeal to younger consumers and build on the brand’s strengths.
Tata Starbucks has clocked good growth and now has 129 stores across eight cities in India, Chandigarh being the latest.
Starbucks in India commemorated the International Coffee Week in October with Starbucks Brewtober. This offered consumers a unique way of celebrating coffee, with various immersive coffee experiences and was very well received.
NourishCo continues to focus on the national rollout of Tata Gluco Plus with launches in West Bengal and Jharkhand last quarter.
In order to cater to consumer preferences and demand in the premium segment, Himalayan mineral water launched a premium glass bottle packaging for its still water and has received excellent consumer feedback.
“The company has clocked steady growth in the last quarter and we are starting to see the benefits of better cost efficiencies and brand portfolio management. The India business has clocked good volume growth, and we are strengthening our key brands in international markets in line with consumer trends and preferences. Our joint ventures (JVs) have done well and growth plans are on track,” said Ajoy Misra, managing director and chief executive officer, Tata Global Beverages.
