Tea And Coffee company Tata Coffee declares Q3FY22 result: Consolidated Total Income for Q3FY22 higher by 18% Consolidated Profit Before Tax for Q3FY22 higher by 35% Consolidated Profit for Q3FY22 higher by 38% Instant Coffee business registered strong performance with substantially higher export volumes and turnover compared to the corresponding quarter of the previous year. Sales to all key markets have been robust. The consumption and demand in 'Out-of-Home' channels are not fully normalized due to the continuing pandemic situation in some regions. Further, there is continuing inflationary pressures on ocean freight costs and input costs, including power & packing material. To mitigate the impact of these external factors on the business, focus on internal operating efficiencies continue. Plantations Segment profitability for Q3FY22 was flat in relation to the corresponding quarter of the previous year. Coffee and Pepper have shown improved performance driven by substantially higher volumes sold during the quarter as well as due to improved realisations on improved commodity prices compared to the corresponding quarter of the previous year. However, the Company's tea operations have been adversely impacted due to lower crop, lower sales and realisations vis-a-vis the corresponding quarter of the previous year. Consolidated Total Income for the quarter higher at Rs.634 crore compared to Rs.538 crore for the corresponding quarter of the previous year, an increase of 18% driven primarily by improved performance in the value-added businesses. Tata Coffee's Vietnam operations continue to deliver improved operating performance, despite inflationary ocean freight costs. Both production and sales volume continue to show steady improvements over the corresponding quarter of the previous year. The Group's Consolidated Profit for Q3FY22 is higher at Rs.69 crore compared to Rs.50 crore for the corresponding quarter of the previous year driven by improved operating performance in the value-added businesses. Commenting on the performance of the Company and the Group, Mr. Chacko P Thomas, Managing Director, Tata Coffee Limited, said "Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved. Our India Instant Coffee performance has been robust. We have seen stable performances across key geographies. Our Vietnam operations continue to be healthy despite higher sea freight costs and order pipeline continues to be encouraging. Our Plantation performance of Coffee and Pepper have also been good. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded improved performance on account of better realisations and favourable channel mix". Result PDF
Conference Call with Tata Coffee Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Consolidated Total Income for Q2FY22 higher by 1% Consolidated Profit Before Tax for Q2FY22 higher by 22% Consolidated Profit for Q2FY22 higher by 27% Instant Coffee business registered substantially higher export volumes and turnover compared to the corresponding quarter of the previous year. This has been despite lower demand with 'Out-of-Home' channels impacted across the globe due to the pandemic and also continued inflationary pressures on ocean freight costs and input costs, including power & packing material. To mitigate the impact of these external factors on the business, focus on internal operating efficiencies continue. Plantations Segment profitability for Q2FY22 was higher driven by higher volumes sold during the quarter, improved realisations on Coffee and Pepper crop, offset partially on lower profitability in Tea attributable to lower crop and prices. Consolidated Total Income for the quarter higher at Rs.554 crore compared to Rs.547 crore for the corresponding quarter of the previous year, an increase of 1%, driven primarily by improved sales of Instant Coffee business in India. Tata Coffee Vietnam operations continue to deliver stable operating performance, despite inflationary ocean freight costs. The Group's Consolidated Profit for Q2FY22 is higher at Rs.54 crore compared to Rs.42 crore for the corresponding quarter of the previous year driven by improved performance in the value-added businesses. Commenting on the performance of the Company and the Group, Mr. Chacko P Thomas, Managing Director, Tata Coffee Limited, said "Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved. Our India Instant Coffee performance has been robust. We have seen stable performances across key geographies. Our Vietnam operations continue to be healthy despite higher sea freight costs , and order pipeline continues to be encouraging. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded improved performance on account of favourable channel mix and better cost management. Result PDF