Coffee chain operator Tata Starbucks Ltd reported a 76 per cent progress in income to Rs 636 crore for 2021-22 and “significantly” lowered its web loss, pushed by normalisation of operations following the easing of COVID-related restrictions.
Its income progress was led by greater realisation from current shops and new shops added throughout the monetary yr ended on March 31, 2022, as per Tata Consumer Products Ltd (TCPL).
“Revenue from Operations at Rs 636 crores, grew by 76 per cent and net loss declined significantly,” TCPL stated whereas sharing particulars of the efficiency of its JV.
However, it didn’t specify the online loss for FY22.
It “saw a strong recovery since re-opening following the second wave of the pandemic” and accelerated its retailer openings throughout the yr with 50 new shops, the best variety of retailer openings in a single yr.
The firm now has 268 shops throughout 26 cities.
Formed in 2012, Tata Starbucks is a 50:50 three way partnership between Starbucks Corporation and Tata group’s FMCG arm Tata Consumer Products Ltd (TCPL).
“During the financial year 2021-22, the Company has invested an amount of Rs 86 crore towards equity capital,” TCPL added.
“As COVID restrictions eased through the year, robust sequential sales recovery was achieved and added 50 new stores with expansion into eight new cities. The new stores are a mix of landmark store openings viz., Golden Temple complex in Amritsar, Jio World Drive in Bandra Kurla Complex in Mumbai and Brahmaputra Riverfront in Guwahati, and smaller footprint stores,” it stated.
Moreover, the loyalty programme My Starbucks Rewards’ member base witnessed a progress of 21 per cent final yr. It boasts of a loyalty base of near 1.1 million prospects.
“Tata Starbucks focused on innovation, digital and deep customer connections to navigate this pandemic and make the Starbucks experience as engaging and personalised as ever,” it added.
Its supply vertical continues to carry out effectively even after the easing of dine-in restrictions.
“The business was able to deliver breakeven at the operating profit level before depreciation and amortisation (EBITDA),” it stated.
As COVID restrictions eased by means of the yr, Tata Starbucks witnessed a sturdy sequential restoration of gross sales within the enterprise, and by March, the shop operation index reached 95 per cent.
“We also saw an increase in average daily transactions on our delivery channel with the restrictions. The levels stabilised higher versus pre-COVID even as the restrictions eased,” the corporate stated.