NOTES FROM EDELWEISS CONFERENCE - 02-FEB-18
- For Q3FY18, excluding Russia, revenue from operations grew 3% YoY, attributable to improvement in India and UK with underperformance mainly in non-branded business.
- Everyday Black Tea category declined and retailer pressure continues in developed markets.
- As per Nielsen data, Tata Global Beverages (TGB) is gaining traction in volumes of tea business—45% of total tea consumed is unbranded and the company expects some shift.
- Within the domestic branded business, volumes have improved. Post GST, growth has been in high single digits or double digits in a few months.
- UK’s market share continues to expand, predominantly in non-black tea category.
- In the Starbucks JV, total number of stores stands at 106. From six cities moving to seventh city—Kolkata. Top line run rate of INR3,000-3,500mn p.a. Starbucks JV is now EBITDA positive.
- Nourish Co achieved break even during the year.
- Exit from China, restructuring of Russian operations and internal restructuring have been completed. Divestment of holding in its associate EMSPL, Sri Lanka in Q3FY18, was part of the company’s overall strategy.