Tata Coffee Vietnam operations continue to deliver robust sales with improved profitability, despite substantially higher ocean freight cost impact. It also has a healthy order pipeline.
Consequent to both the above, the Group’s Consolidated Net Profit for Q1FY22 is lower at Rs46cr compared to Rs62cr for the corresponding quarter of the previous year
Standalone Total Income higher at Rs203cr compared to Rs180cr for the corresponding quarter of the previous year, representing an increase of 13% on increased revenues from Value-added business, despite being impacted by logistics issues and continuing pandemic restrictions in certain markets. The above Total Income includes Dividend received from Overseas Subsidiary of Rs18cr, against 'Nil' in the corresponding quarter of the previous year.
Instant Coffee business registered substantially higher export volumes and turnover. However, near term volume and pricing pressures on Instant Coffee business continue on lower short-term demand with 'Out-of-Home' channels impacted across the globe due to the pandemic and also continued inflationary impacts on input costs and freight costs.
The company had lower Plantations revenues at Rs89cr compared to Rs107cr for the corresponding quarter of the previous year, as Plantation Coffee turnover for the corresponding quarter of the previous year· had the benefit of higher sales owing to deferral of sales to Q1FY21 from March 20, when the pandemic first set-in. Plantations Segment profitability for Q1FY22 higher mainly on higher Pepper and Tea profitability driven by improved realisations on the products.
Commenting on the performance of the Company and the Group, Chacko P Thomas, Managing Director, Tata Coffee Limited, said "Despite challenging conditions, our overall performance has been stable. Our India Instant Coffee exports for the quarter have been higher despite logistics issues and inflationary impacts on input costs and Ocean freight costs. We have seen stable performances across key geographies. Our Vietnam operations continue to improve and order pipeline continues to be healthy. We see slowdown in demand in some geographies in the short-term, especially in the 'Out-of-Home' consumption due to the COVID 19 pandemic.”
Tata Coffee Ltd ended at Rs214.75 per piece down by Rs20.65 or 8.77% from its previous closing of Rs235.40 per piece on the BSE.