Losses incurred through the sale of its overseas subsidiary have dragged Tata Coffee’s group consolidated profit down by 35.28 per cent to ₹16.32 crore for the quarter ended March 31.
The company’s total income from operations, however, rose 2.43 per cent to ₹397.3 crore during the fourth quarter compared with the year-ago period.
Tata Coffee has attributed the loss to the sale of Consolidated Coffee Inc. The US-based subsidiary had invested in a US-based functional beverage company. Based on changed market conditions, its performance and significant future funding requirements, Tata Coffeedecided to divest its holdings in Consolidated Coffee during the second quarter of the fiscal 2013-14. The losses on this account are included under exceptional items and net of tax and minority interest, the impact on group consolidated profits is ₹33 crore.
The board of directors has recommended a dividend of ₹13 a share of ₹10 each, aggregating to ₹24.28 crore for the year ended March 31.
Coffee and pepper continued to record encouraging performance throughout the year. Instant Coffee recorded improvement in sales volumes during Q4, from new customers and new markets, said a company release.
“Its focus on high value specialty coffee helped neutralise the fall in both the robusta and arabica prices during the year. The pepper business has generated substantial margins, underlining our strength of being a multi-product plantation company,” it added.
Eight O’ Clock Coffee During the 12-month period, Eight O’ Clock Coffee Company (EOC), a subsidiary of Consolidated Coffee, recorded a total income of $170.69 million, compared with $202.84 million in the previous year.
The operating profit of EOC stood at $25.89 million against $29.85 million.
The growth in single serve coffee business has impacted the sale of coffee in conventional bags and cans across the US.