Tata Coffee, a subsidiary of Tata Consumer Products, recorded a consolidated profit of Rs 48.8 crore for the January-March FY23 quarter, growing 19.7 percent over the year-ago period, despite a fall in operating numbers. The profitability was driven by higher other income and lower tax expenses.
Consolidated revenue for the quarter at Rs 723 crore increased by 10.2 percent over the corresponding period last fiscal.
"The topline was driven by higher realisations in Eight O' Clock Coffee (EOC), instant coffee as well as plantation coffee businesses. The improved price realisations driven by superior product mix in instant coffee business both in India and Vietnam has aided the company's quarter performance," Tata Coffee said in its filing to exchanges.
The instant coffee business comprising both India and Vietnam improved its revenue by 18 percent compared to the corresponding quarter of the previous year.
The operating performance of the EOC business was impacted during the quarter by lower bag volumes and higher input costs, but Tata Coffee's Vietnam operations continued to deliver strong sales with improved profitability driven by higher sales of premium products, the company said.
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On the operating front, Tata Coffee reported a 4.8 percent year-on-year fall in EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 105.72 crore with the margin declining 230 bps compared to the year-ago period impacted partly by higher input cost.
"While sales to certain geographies like Africa are still muted, we have opened alternate markets and we are hopeful of recovery in the African markets too," Tata Coffee Managing Director Chacko P Thomas said.
He further said the coffee plantation performance was good, aided by improved realisations due to premiumisation, though Robusta crop was negatively impacted due to adverse weather conditions.
For the full year, Tata Coffee recorded a massive 78 percent year-on-year growth in profit at Rs 262.84 crore and the revenue grew by 20.6 percent to Rs 2,850.2 crore compared to the previous year.
The company has announced a dividend of Rs 3 per share for the financial year 2022-23.
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