India’s Tata Consumer Products missed first-quarter profit estimates on Wednesday, hurt by elevated tea and coffee prices.
Net profit came in at 3.34 billion rupees ($38.7 million) for the quarter ended June, compared with analysts’ average estimate of 3.56 billion rupees, according to data compiled by LSEG.
In the year-ago quarter, the company had incurred a one-time restructuring-related cost of 171 million rupees. Excluding that, profit was unchanged on-year.
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“Operating performance of branded business was impacted by tea and coffee cost inflation in India and international,” said the company, which houses brands such as Tetley Tea and Tata Coffee.
Tata’s tea portfolio, which makes up a significant portion of revenue, has been hit by higher prices due to adverse weather conditions and supply chain disruptions.
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