Tata Coffee saw net profit boosted by 26.55%, in part led by increased sales of instant coffee in India.
The instant coffee business has skyrocketed in terms of export volumes and turnover as compared to the equivalent quarter last year, despite the lack of demand for ‘Out-of-Home’ channels due to the pandemic and higher freight costs.
The company focused their efforts to boost efficiency on internal operations instead, which also helped explain the jump in net profit, even as revenue from operations only nudged upward by 0.56%.
Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved.
Our India Instant Coffee performance has been robust. We have seen stable performances across key geographies.
Managing director of Tata Coffee Chacko P Thomas
Tata Coffee’s Vietnam operations are also stable, in spite of the leap in ocean freight costs. In fact, the company’s total profit for Q2 FY22 grew because of the improved performance.
Our Vietnam operations continue to be healthy despite higher sea freight costs , and order pipeline continues to be encouraging. Our Subsidiary, Eight O’Clock Coffee [EOC] has during the quarter recorded improved performance on account of favourable channel mix and better cost management.
Managing director of Tata Coffee Chacko P Thomas
