Tata Global Beverages FY19 PAT dips 16.4% to Rs 474 cr; to acquire Dhunseri Tea biz for Rs 101 cr
BusinessToday.In April 23, 2019
Tata Global Beverages, a subsidiary of Tata Group, has posted 16.4 per cent year-on-year decline in consolidated profit after tax (PAT) at Rs 474 crore for the year ended March 31, 2019, dented by weak retail participation due to adverse global and political developments.
"The company's consolidated PAT stood at Rs 553.50 crore in the year-ago period, Tata Global Beverages (TGBL) said in a statement.
Revenue from operations for the fiscal slipped by 6.4 per cent to Rs 7,252 crore as compared to Rs 6,815 crore in the previous year.
For the financial year 2019, the company's operating profit (EBITDA) also fell to Rs 838 crore as compared to Rs 851 crore in FY18.
The company reported a 49.70 per cent decline in consolidated net profit at Rs 35.99 crore for the fourth quarter ended March 31, 2019, as compared to Rs 71.56 crore in the year ago period, weighed down by Lower sales in US Coffee and Tea.
"Group net profit for the quarter and full year is lower mainly due to higher exceptional items, higher share of losses from JVs and associates and higher one-time tax credits in the previous year," the company said.
In January-March period, total income of the company increased to Rs 1,810.69 crore from Rs 1,714.12 crore in the same quarter of the previous fiscal, helped by higher sales, lower commodity cost in international markets and improved performance of non-branded business.
The company's board recommended a final dividend of Rs 2.50 per equity share for the financial year 2018-19. The dividend, if approved by the members at the ensuing Annual General Meeting, will be paid on or after June 13, 2019, it added.
For the full year, the India tea business clocked a 9 per cent volume growth and 7 per cent value growth across its brands. For the quarter, India registers a 12 per cent volume growth and 11 per cent value growth.
Commenting on earnings, Ajoy Misra, Managing Director and CEO of Tata Global Beverages said "The Company has posted steady revenue growth in the last year. Profits have been impacted due to one off items, commodity costs and increased brand investment."
In a separate development, Tata Global Beverages announced that it will acquire the branded tea business of Dhunseri Tea & Industries for Rs 101 crore. The branded tea business of Dhunseri Tea and Industries is presently carried out under the brands "Lalghoda" and "Kalaghoda" which are among the leading local brands in Rajasthan.
Edited by Chitranjan Kumar