India-based conglomerate Godrej Industries saw revenue from its food and beverages division more than halve during the second quarter of the year.
Godrej saw food and drink sales fall to INR350m (US$7.8m) during the three-month period from INR820m in the previous year.
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However, the division’s losses before interest and tax remained flat compared with the same period of the previous year, with a INR40m loss reported for the quarter.
Godrej said that during the second quarter, beverage sales from its Godrej Hershey joint venture rose 23%, while Hershey Syrup sales grew by 63% when compared with the same period last year.
Additionally, sales of Hershey Syrup grew by 63% when compared with the same quarter last year.
During the quarter, Godrej commissioned a new lollipop machine, which has significantly improved the delivery quality and it entered the rupee category, with the launch of the Nutrine 1-2-3 fruit candy.
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By GlobalDataMeanwhile, the company said its Godrej Tyson partnershp continued “delighting its customers”, posting a 41.9% sales increase for the second quarter. Volumes in its Real Good Chicken line improved 16% and prices increased by 5.5%, while volumes in its Yummiez range improved 69% and prices rose 6%.
The company added that significant cost reductions in Godrej Tyson division have been “sucessfully implemented”.
Elswhere, Godrej’s Natures Basket fine-food retail chain posted a 70% increase in revenue compared to the same quarter of the previous year, while it saw faster growth in its Delhi stores, with 18% growth compared to the previous quarter.
The group plans to open a further four outlets in the third quarter, to reach 14 stores by the end of the quarter.
The conglomerate’s consolidated net profit increased by 12.5% to reach INR750.3m over the quarter, while consolidated net sales rose 19.1% to INR9.8bn.
