With higher expenditure on new brands and new initiatives, Tata Global Beverages Ltd (TGBL) on Thursday posted a decline of 15.35 percent in its net consolidated profit for the first quarter of the current fiscal at Rs.82.31 crore as against Rs.97.23 crore last year.
Net consolidated revenue of the firm increased by 6.19 percent at Rs.2,028.99 crore in the period under review against Rs.1,910.66 crore in the year-ago period.
Its percentage rise in expenditure, however, mounted more than its revenue increase percentage.
The company's total expenditure in the first quarter surged by 7.53 percent at Rs.1,875.778 crore compared to Rs.1,744.36 crore in the same timeframe in 2014.
Its tea division continued to churn revenue which increased by 5.08 percent in the review period while income from the coffee and other division rose by 9.58 percent.
In a statement, the company said the period under consideration saw strong performance by the business in India while markets like Canada, Middle East and Russia performed well. Its continued focus on the green and specialty tea category across geographies enabled TGBL gains market-shares in key markets.
"Consumer trends point to a growing market in green & specialty tea. We will continue to leverage this trend while strengthening our core black tea markets. We continue to invest behind our brands and remain focused on growth through innovation, category expansion and our strategic alliances," said managing director and CEO Ajoy Misra.
