Tea & Coffee company Tata Coffee announced Q1FY24 results:
- Consolidated Q1FY24:
- Total Income for Q1FY24 higher at Rs 708 crore compared to Rs 666 crore for Q1FY23, an increase of 6%, driven by higher realisations in Plantation Coffee and Instant Coffee businesses both in India and Vietnam.
- Tata Coffee's Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. It has a robust healthy order pipeline.
- The operating performance of the EOC business was impacted during Q1FY24 by lower bag volumes and higher input costs.
- The Group's Consolidated Profit for Q1FY24 is marginally lower at Rs 62 crore compared to Rs 65 crore in Q1FY23 due to the subdued performance of EOC.
- Standalone Q1FY24:
- Total Income higher at Rs 262 crore compared to Rs 243 crore for Q1FY23, representing an increase of 7% on increased revenues from Coffee Plantations.
- The operations of Tea plantations have improved as compared to Q1FY23 on higher crops and better realisations.
- Green coffee turnover and profitability improved over the previous year driven by improved prices and product mix.
Commenting on the performance, Chacko P Thomas, Managing Director, Tata Coffee, said, "The standalone performance of the company has been very good despite inflation and recessionary trends seen in our markets. Our Coffee Plantation performance was good, aided by improved realizations. The monsoon was deficient during the quarter in our Coffee plantations. Tea plantation's performance was robust in the quarter driven by higher crop production & lower cost of production. Tata Coffee's Vietnam operations continue to be robust with a healthy order pipeline and the operations are running at maximum capacity. The profitability of Eight O'clock Coffee [EOC] has been impacted during the quarter due to lower volumes and higher input costs. Overall, it has been a very satisfying performance".