India's Tata Coffee posts strong Q2 pre-tax profit on lower costs, higher prices

Tata Coffee

19/10/2023 16:08

BENGALURU, Oct 19 (Reuters) - India's Tata Coffee
 TACO.NS  on Thursday reported a near 63% rise in second-quarter
profit, as lower costs and higher prices for its premium brands
such as Gold and Eight o'clock coffee more than offset subdued
sales. 
    Consolidated profit before exceptional items and tax for the
July-Sept quarter stood at 820.4 million rupees ($9.86 million),
compared with 503.8 million rupees a year earlier, the company
said.
     The company, which is a supplier to a joint venture between
U.S. coffee chain Starbucks  SBUX.O  and parent Tata Consumer
Products  TACN.NS , reported a 51.5% rise in pre-tax profit of
its value-added business. 
    The business accounted for 82% of Tata Coffee's pre-tax
profit in the latest quarter.
    However, total revenue from operations fell 3.1% to 6.96
billion rupees. 
    "Coffee Plantation performance was subdued due to lower
volumes sold, though realizations have improved," Managing
Director Chacko Thomas said in a statement. 
    Expenses fell 5.3% to 6.37 billion rupees, as raw material
costs eased. 
    Separately, Tata Coffee renamed K Venkataramanan as chief
financial officer. 
    Tata Consumer Products will report earnings next week. 
    Earlier in the day, consumer major Nestle India  NEST.NS 
beat estimates with a 37.3% rise in September-quarter profit on
higher demand for its chocolates and instant noodles. 

($1 = 83.1729 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Anil D'Silva)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))