Tata coffee reported its Q3FY23 results; Net profit declined by 45%

Tata Coffee on Tuesday reported a 44.71 per cent decline in consolidated net profit during the December quarter at INR 38.40 crore. The consolidated net profit of Tata Coffee Ltd (TCL) stood at INR 69.46 crore in the year-ago period, it said in a regulatory filing.

Consolidated total income for the quarter witnessed a 19.13 per cent growth during the October-December period at INR 754.76 crore as compared to INR 633.52 crore in the corresponding period previous year, driven by higher realisations in Eight O’ Clock Coffee (EOC) and instant coffee businesses of the company.

The company, a subsidiary of Tata Consumer Products formerly known as Tata Global Beverages, stated that the improved price realisations driven by superior product mix in instant coffee business both in India and Vietnam has aided the company’s quarter performance.

The operating performance of EOC business was impacted during the quarter under review by higher input and other costs, which are expected to ease over coming quarters, it said. Tata Coffee’s Vietnam operations continue to deliver robust sales with improved profitability driven by higher sales of premium products, it said.

“The performance of our instant coffee business continues to be robust. Tata Coffee’s Vietnam operations continue to be strong with a healthy order pipeline. There is, however, continuing inflationary pressure on costs and impact on instant coffee sales in some geographies. “Our subsidiary, Eight O’ Clock Coffee, has registered higher revenues though the profitability for the quarter has been impacted due to higher costs,” TCL Managing Director Chacko P Thomas said.