The Indian coffee and tea giant has attributed the strong performance of its wholesale hospitality channel as driving fourth quarter sales growth
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Tata Coffee reported 20% year-on-year consolidated net profit growth to reach Rs 48.8 crore ($5.9m) | Photo credit: Tata Coffee
Tata Coffee has seen revenues and profits rebound in its fourth quarter following a recovery in consumer footfall at hospitality venues across India.
The Tata Group-subsidiary, whose wholesale hospitality channel supplies coffee to hotels, cafés and restaurants, reported 20% year-on-year consolidated net profit growth to reach Rs 48.8 crore ($5.9m) and 10% revenue growth to Rs 723 crore ($87.9m).
Increased sales were attributed to higher sales of Tata Coffee’s Eight O' Clock Coffee whole bean brand, as well as the strong performance of its instant coffee businesses, which includes Tata Coffee Grand and Tata Coffee Gold.
In its third quarter Tata Coffee reported a 45% fall in profits to Rs 38.4 crore ($4.7m).
Tata Coffee, which also exports to more than 40 countries, posted 78% full year consolidated net profit growth to reach Rs 262 crore ($32m) and a 21% increase in year-on-year revenue to Rs 2,850 crore ($346.5m).
Founded in 1922, Tata Coffee is Asia's largest integrated coffee company and India’s second largest exporter of instant coffee. The company also produces tea and pepper.
Increased out-of-home coffee consumption was also cited as the main driver of Tata Consumer Products' third quarter revenues. In February 2023, the Indian coffee and tea group said revenue growth for Tata Starbucks reached 42% in the three months ended 31 December 2022.
Tata Starbucks currently operates approximately 320 stores across India.
Further highlighting opportunities for coffee shops across the country amid increasing out-of-home coffee consumption, domestic café chain Barista recently reached its 350-store milestone and outlined plans to reach 500 stores across the country within two years.
Fellow Indian café chain Blue Tokai Coffee Roasters is seeking to open 200 new stores over the next three years having raised $30m in Series B funding round.
Meanwhile, Costa Coffee, operated across India by Devyani International Limited, reported its revenues for the first nine months of its 2023 fiscal year exceeding its full-year 2022 sales by 67%, reaching Rs 68.8 crore ($8.3m).