The FMCG player announced its Q2 September 2019 earnings after market hours on Friday, 25 October 2019.
On consolidated basis, the company's net profit rose 11.3% to Rs 40.13 crore on a 5.5% rise in net sales to Rs 481.23 crore on YoY basis.
The company in an exchange filing stated that the Instant Coffee business, part of the Value-Added business segment, continued its good quarterly sales volume with all the geographies registering higher sales volume over the corresponding quarter of the previous year. However, the margins were under pressure due to the prevailing global environment.
On the global front, Eight O'Clock Coffee Company [EOC], held through the company's overseas subsidiary, Consolidated Coffee Inc., recorded a total income of $38.92 million for the current quarter as against $40.21 Million in the corresponding quarter of the previous year. Despite increase in sales volume in the current quarter compared to the corresponding quarter of the previous year, the turnover was lower largely on account of higher trade spends.
Commenting on the company's performance, Chacko P. Thomas, managing director, Tata Coffee said, "Soluble Coffee business continues to perform well, registering higher volumes during the quarter compared to the corresponding quarter of the previous year. We have seen good performances across geographies. On Plantations, falling coffee terminal and lower pepper prices have had some impact on profitability, but we have been able to keep it in check through efficiency improvements in our operations. Operations at the new state-of-the-art TCVCL Plant at Vietnam continue on a healthy note. Production and dispatches have started, and we are sequentially ramping up each month. The Plant is expected to reach very high capacity utilization in H2FY20. We also have a healthy order book for the coming quarters."
Shares of Tata Coffee were trading 3.93% higher at Rs 81.9. Meanwhile, NSE Nifty 50 index traded 115.4 points higher at 11,742.55.
Tata Coffee, a subsidiary of Tata Global Beverages, is Asia's largest integrated coffee Company and the 2nd largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India.
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