Tata Coffee Limited Q1 FY '24 Earnings Conference Call Summary
Date and Submission
• Date of Call: July 20, 2023
• Submission: Transcript submitted to National Stock Exchange of India and BSE on July 24, 2023
Financial Highlights
• Total Income: Increased by 7.5% year-over-year
• Profit After Tax (PAT): Slight decline to INR 27 crores
• Revenue Drivers: Higher revenues from coffee plantations and instant coffee operations
• Market Challenges: Issues in the spray-dried coffee market, particularly in Southeast Asia and Africa
• Merger Update: Advanced stages with Tata Consumer; final order from NCLT expected this quarter
Performance Insights
• Eight O'Clock Coffee:
• Faced a challenging quarter but maintained market share and added customers
• Strong business fundamentals; expected improvement in consumption patterns
• Downtrading Concerns:
• Temporary phenomenon due to global economic pressures
• Confidence in return to normal consumption levels
Market Dynamics
• Supply and Demand:
• New capacities coming online; manageable imbalances
• Sustainability Commitment:
• Preparedness for new EU deforestation regulations
Pricing Strategy
• Impact of Price Increases:
• Maintained market share despite price hikes
• Future pricing decisions dependent on input costs and market conditions
Avocado Plantation Initiative
• Progress:
• Avocado plantation in Coorg nearing completion; first small harvest underway
• Larger volumes expected in upcoming harvest season
• Emphasis on crop diversification and land use maximization
Capital Expenditure Plans
• Capex:
• Similar spending levels as the previous year
• Larger project decisions pending due to transition to Tata Consumer
Conclusion
• Closing Remarks:
• Chacko Thomas thanked participants for their engagement.

Tata Coffee Limited Q4 FY '23 Earnings Conference Call Summary
Financial Performance
• Q4 Standalone Revenue: Increased by 13%, driven by strong instant coffee and plantation operations.
• Profit After Tax (PAT): Rose by 16.33%.
• Full Year Revenue: Increased by 25%, with notable performance in green coffee sales.
Challenges and Optimizations
• Challenges: Rising input costs and market dynamics.
• Cost Optimization: Successful efforts acknowledged by management.
Merger Update
• Pending Merger: With Tata Consumer Products, expected completion within three months, pending NCLT approvals.
Operational Highlights
• Tata Coffee Grand: Improved sales and franchise performance.
• Vietnam Plant: Operating at full capacity with a strong order book.
Instant Coffee Market
• Demand Growth: Steady growth of 2-2.5% with full capacity utilization in Vietnam and India.
• Freeze-Dried Coffee: Strong demand, particularly in Russia; some slowdowns noted in Africa due to inflation.
Coffee Pricing and Outlook
• Robusta Coffee Prices: Currently around $2,400 per ton due to crop shortages; bullish outlook despite uncertainties.
• Innovation and Distribution: Focus on enhancing the Eight O’Clock brand to drive growth.
Eight O'Clock Coffee Performance
• Brand Position: Fifth largest brand; has not fully passed on raw material cost increases.
• Volume Trends: Decline in bag sales post-COVID, but growth in K-cups.
• Future Efforts: Ongoing innovation and distribution strategies to boost bag volumes.
Conclusion
• Management Outlook: Optimistic about the coffee market with a cautious approach to future price trends and growth opportunities.

Tata Coffee Limited Q3 FY '23 Earnings Conference Call Summary
Date and Submission
• Date of Call: January 25, 2023
• Transcript Submission: January 27, 2023, to BSE and NSE
Financial Highlights
• Standalone Revenue: Increased by 23% due to higher gross margins in Instant Coffee.
• Consolidated Revenue: Rose 19% to INR 747 crores.
• Profit Impact: Rising input costs affected profits, particularly in the Eight O'Clock Coffee segment.
Market Outlook
• Coffee Prices: Soft outlook anticipated due to market pressures.
• Merger Update: Ongoing merger with Tata Consumer expected to conclude regulatory processes in a few months.
Capital Expenditure and Plantation Business
• Capex Plans: Normal capex projected at INR 25-30 crores for instant coffee modernization and plantation replanting.
• Separate Plantation Subsidiary: Aimed at enhancing focus and operational synergies.
Merger Timeline
• Shareholder Meeting: Scheduled for February 3.
• NCLT Process: Ongoing, with completion estimated in three to four months post-approval.
Operational Insights
• Vietnam Order Book: Healthy and covers the next two quarters; both Vietnam and India operating at full capacity.
• Expansion Caution: Evaluating opportunities but cautious about immediate capex due to demand conditions.
Global Demand and Market Conditions
• Demand Resilience: Overall coffee demand remains strong despite slowdowns in specific regions.
• Inflation and Currency Fluctuations: Considered cyclical issues with expectations for market rebound.
Capacity Expansion and Pricing
• Vietnam Capacity: Full capacity; long-term demand assessment required before substantial capex decisions.
• Robusta Coffee Collection: 17% contraction compared to last year, current prices at $1,941 per ton.
Margin Recovery
• Eight O'Clock Coffee Margins: Estimated recovery timeline of two to three quarters due to inventory management.
Management Changes Post-Merger
• Merger Benefits: Synergies in distribution, reduced compliance costs, and a focused plantation entity.
Conclusion
• Investor Acknowledgment: Management thanked investors for their interest.