Tata Coffee’s third quarter consolidated net profit drops 45% to ₹38 crore

Tata coffee reported a 44.71 percent drop in consolidated net profit during the December quarter at ₹38.40 crore on Tuesday. The consolidated net profit of Tata Coffee Ltd (TCL) stood at ₹69.46 crore in the year-ago period, it said in a legal filing.

Consolidated total income for the quarter witnessed a growth of 19.13 percent in the October-December period to ₹754.76 crore as compared to ₹633.52 crore in the corresponding period last year, driven by higher realizations in Eight O’Clock Coffee (EOC) and the company’s instant coffee business.

The company, a subsidiary of Tata Consumer Products formerly known as Tata Global Beveragesstated that the improved price realizations, driven by a superior product mix in the instant coffee businesses in both India and Vietnam, contributed to the company’s quarterly performance.

The operating performance of EOC businesses was impacted during the quarter under review by higher input and other costs, which are expected to ease in coming quarters, the company said.

Tata Coffee’s business in Vietnam continues to deliver strong sales with improved profitability due to higher sales of premium products, the company said.

“The performance of our instant coffee business remains robust. Tata Coffee’s business in Vietnam remains strong with a healthy order pipeline. However, there is ongoing inflationary pressure on costs and impact on instant coffee sales in some regions.

“Our subsidiary, Eight O’Clock Coffee, has recorded higher revenues, although profitability for the quarter has been affected by higher costs,” TCL Managing Director Chacko P Thomas said.

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