Improved operating performance, higher exceptional income and lower losses from its JV associates saw Tata Global Beverages (TGBL) net profit jump by 13.2 per cent in the April-June quarter to Rs 142 crore from Rs 126.29 crore in the corresponding period last year. The net revenues for the first quarter stood at Rs 1718.76 crore, down marginally from Rs 1756 crore in the comparable quarter last year. "Sales growth during the quarter was muted due to introduction of GST and phasing of promotions in developed markets," L Krishnakumar, chief financial officer of TGBL, told PTI here. TGBL has disposed its stake in its Chinese joint venture, Zhejiang Tata Tea Extraction Company. The firm has also decided to restructure its operating model in Russia by entering into an agreement to transfer ownership and operational responsibility of its business unit in that country to Skodnya Grand and to grant, post completion of the transaction, a 5-year renewable licence agreement for its Russian brands to Tea Trade, the company said. "The Russian restructuring should be completed in the next few months," Krishnakumar said. TGBL will continue to retain ownership of its brands in Russia. The new owner will manufacture and sell TGBL's existing brands and products for which the Indian firm will receive royalties. The company's joint ventures, Tata Starbucks and NourishCo, had a strong quarter with a turnover growth in excess of 20 per cent each, Krishnakumar added. Asked about growth plans for the fiscal, he said, "We are looking at further avenues of growth.
We piloted ready to drink teas under the brand 'Fruski' in the north and will launch it in other markets too. We have also seen strong growth in our branded teas and are looking to expand our water portfolio." Health and wellness continues to be a key focus area for TGBL and its recent innovations are built around this trend, he said.
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