INDIA: Tata Global Beverages records FY profits decline
- Full-year net profits drop by 53.7% to INR1.81bn (US$39.9m)
- Net sales slide by 4.2% to INR19.14bn
- Rising input costs and increased advertising spend hurt profits
Tata Global Beverages records a drop in full-year profits
Tata Global Beverages has recorded a decline in full-year profits, hurt by an increase in input costs and a rising advertising spend.
For the year to the end of March, net profits dropped by 53.7% to INR1.81bn (US$39.9m). Sales slid by 4.2% to INR19.14bn, the company said in a Bombay Stock Exchange filing yesterday (24 May).
During the year, Tata increased its investment behind new products and existing brands. This investment and the impact of higher commodity costs, affected profits, the firm said.
“The business put in a good performance, despite intense cost pressure from commodities and a challenging trading environment,” said Tata Global Beverages' managing director, Percy Siganporia. “Where possible we took price increases to sustain margins, continuing to invest behind our brands and so protect share and the long term health of our brands.”
Yesterday, Tata announced that its CEO, Peter Unsworth, has resigned after 15 years with the company. He will step down from his role on 30 June for "personal reasons".
Click here to view the Bombay Stock Exchange filing.
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