Tata Global Beverages’ Net Profit shrinks by 45.6 Percent

Kolkata, May 28 (IANS): Hit by adverse macroeconomic factors in Russia and Eastern Europe and delays in its operations in China, Tata Global Beverages’ net profits fell by 45.6 percent during the 2014-15 fiscal at Rs.284.36 crore against Rs.522.37 during the previous year.

The consolidated net income, however, during the period under review remained almost flat at Rs.1,922.65 crore compared with Rs.1,909.93 crore during the 2013-14 fiscal, the company said in a statement on Thursday.

It said the company recognised a non-cash impairment loss under exceptional items relating to its businesses in China and Eastern Europe. “The impairment relating to the China business is on account of delays in start up and stabilisation of technology for an enhanced product range,” it said.

According to the company, an adverse macroeconomic situation in Russia and, to an extent, in eastern Europe impacted its business. “The year saw a strong focus on the green and specialty tea category, innovative product launches and strong marketing campaigns,” it said.

Its tea business, in the review period, recorded sales of 100 million kg — its highest sales in a year — while under the Tetley brand it expanded the flavoured tea portfolio in Britain and Canada.

During the 2014-15 fiscal, the company entered the premium black tea segment in Australia with a range of single origin teas. The earnings from tea business grew by 3.14 percent from April 2014 to March 2015 at Rs.5,880.24 crore against Rs.5,701.20 crore in 2013-14. Its revenues from the coffee business and others also grew to Rs.2,010.33 crore in 2014-15 from Rs.1,947.49 crore in 2013-14.