Tata Coffee, the Bangalore-based publicly-held coffee grower, has doubled its net profit to Rs 28 crore for the fourth quarter of FY12 compared to the corresponding previous quarter. Revenues were up 33 per cent to Rs 127 crore.
The company, explaining the good growth, said its instant coffee division has shown a dramatic turnaround as a result of the successful process-centric business transformation it undertook with a focus on consolidation and growth. In addition to this, the company’s focus on the premium segment for speciality and certified coffees resulted in 28 per cent increase in volumes sold, compared with the previous year. The company also targeted the US market for its Robusta coffee and saw a manifold increase in volumes. “Domestic coffee consumption has been growing steadily over the last several years driven by a double digit growth in the instant coffee category and out-of-home consumption. Tata Coffee is gearing up to supply coffee beans to cafes and the tie up with Starbucks will propel this growth in the coming years,” a statement from the company said.
As a result of these steps, Tata Coffee's net profit for FY12 increased by 43 per cent to Rs 78 crore, while its topline grew by 27 per cent to Rs 508 crore. Commenting on the overall performance, Hameed Huq, Managing Director, Tata Coffee Ltd, said, “We are very happy with our performance for the financial year 2011-12. We are also pleased to see a steady growth in our plantation business that has been a cornerstone of our success this year.”
