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.
