Tata Global Beverages : Results for Quarter ended September 2017

Consolidated Results for the quarter:

Group Revenue from operations at Rs 1692 crores up by 6% in underlying currency.

Group Profit before Exceptional Items at Rs 208 crores up by 23%

Group Consolidated Net Profit at Rs 154 crores up 11%

For the quarter, Revenue from operations at Rs 1692 Crores grew by 6% in underlying terms. Profit before exceptional items at Rs 208 Crores is higher by 23% as compared to the corresponding quarter of the previous year due to improved operating performance, good cost management and lower finance costs.

Group Consolidated net profit for the quarter at Rs 154 crores is higher by 11% as compared to the corresponding quarter of the previous year reflecting higher profit before exceptional items partly offset by exceptional expenditure.

The Group has completed the restructuring of its Russia operations, resulting in the sale of two of the company's overseas subsidiaries (Sunty LLC and Tea Trade LLC), as on November 3, 2017.

The quarter saw a number of new product launches across geographies and continued investment to strengthen our brands.

In India, there was strong focus behind the second phase of the Tata Tea Jaago Re campaign 'Alarm Bajne se Pehle Jaago Re' which was launched earlier this year. India market is also evaluating the Out of Home beverage space with the recent pilot launch of its first tea café Tata Cha, in Bangalore.

Tetley in UK saw market share gains, primarily driven by its focus on the non-black tea category. The brand is celebrating its 180th anniversary this year with a series of initiatives to further drive its heritage, quality and expertise credentials. In the Middle East, two new variants of loose tea- 'Tetley Strong' and 'Tetley Gold' were launched to further strengthen the brand portfolio.

Tata Starbucks, the joint venture between Tata Global Beverages and Starbucks Coffee Company, celebrated the opening of its 100th store in India, located at Mumbai, and its five-year anniversary in India. Eight O Clock coffee in the USA launched a limited edition flavor 'Pumpkin Spice' for the autumn season. This medium roasted flavor captures the essence of the season with subtle cinnamon spice, maple brown sugar, and classic pumpkin.

The water portfolio made good progress during the quarter driven by volume growth and acquisition of new key accounts. Tata Global Beverages' premium natural mineral water brand 'Himalayan', will now enter the USA market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company®, to distribute and market the brand. This makes Himalayan, which is backed by the trust and credibility of the Tata brand, one of the first premium Indian FMCG brands to target the broader American audience.

Mr. Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said - 'We are pursuing an aggressive profitable growth strategy of strengthening our core brands, innovative new launches, category expansion and rationalizing non profitable businesses. The last quarter has seen significant profit growth driven by improved operating performance and good cost management. We will continue to innovate in tea, coffee and water with new blends and beverage experiences. Our joint ventures have clocked good growth during the quarter and are steadily expanding.'

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