Shares of Tata Global Beverages advanced 4.49% to Rs 305.Tata Global Beverages (TGBL)'s consolidated net profit fell 18.5% to Rs 153.59 crore on 4.2% rise in net sales to Rs 1,834.06 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours yesterday, 30 October 2019.
The company said that during the second quarter, it had a one-time impact of the tax rate change on the group consolidated net profit with a charge of Rs 9 crore, arising mainly on account of reversal of opening net deferred tax assets.
The group consolidated net profit, excluding the impact of one off items as explained above, is higher by 45% as compared to corresponding quarter of the previous year.
Profit before taxes, excluding one-off items included under other Income in the prior year, is higher by 28%, driven by branded business, both India and International, coupled with stable performance in non-branded businesses.
A rise in revenue from operations was driven by improvements in both branded and non-branded business.
For the quarter, the India tea business clocked a growth of 8% both in volume and value terms. International business witnessed volume growth both in branded tea and coffee in key markets of UK, US and Canada.
For the quarter, the total revenue from Tata Coffee and Vietnam unit recorded 18% growth, due to commencement of sales from Vietnam and higher sales in the Instant Coffee division.
The merger of the consumer products business of Tata Chemicals with TGBL is on schedule and after shareholders' approval, is expected to achieve full closure by end of the current financial year.
Tata Starbucks clocked a 26% growth in revenue for the quarter. It entered Gujarat in August, opening 5 stores, 3 in Ahmedabad and 2 in Surat. It now has 163 stores spread across 10 cities in India. The consumer connection scores are at an all time high.
Ajoy Misra, managing director and CEO of Tata Global Beverages said "The company reported steady revenue growth in the last quarter. Group net profit excluding the impact of one off items recorded a growth of 45% during the quarter. The India business recorded continued value and volume growth. Our flagship brands in India recorded good growth and we will continue to focus on white space opportunities in the Indian market. Our international markets reflected volume growth in both tea and coffee. We will continue to strengthen our innovation agenda while further strengthening our core brands. Our JVs continue to perform well and have posted good revenue growth in the quarter."
Tata Global Beverages is a global beverage business with presence in over 40 countries. The Company has significant interests in tea, coffee and water and is the No.2 player in branded tea in the world.
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