INDIA: Tata Global Beverages Q1 sales up, but profits slip
- Q1 net profits slip 12.9% to INR9.7bn (US$161.3m)
- Net sales up 5% to INR19.1bn
- Operating profits fall 6.8% to INR6.6bn
Tata Global Beverages has seen a rise in first-quarter sales, but profits were dragged down by investments in new ventures.
The India-based tea, coffee and water brand owner said net profits in the three months to the end of June fell by 12.9% to INR9.7bn (US$161.3m). Sales in the period increased 5%, while operating profits fell 6.8% to INR6.6bn.
“While (our) branded business performed well, profitability was impacted by lower crop available for sale in the plantation business and investment in new ventures,” the company, a subsidiary of Tata Group, said.
Ajoy Misra, Tata Global Beverages's newly-appointed MD & CEO admitted that the unit is operating in a “challenging market environment”.
He added: “Tata Global Beverages is leveraging key consumer trends like health & wellness and convenience to develop and market differentiated product offerings in tea, coffee and water. In addition to organic growth, innovation, category expansion and strategic alliances will drive growth for the business.”
Misra was appointed in April.
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