CCL Products

CCL Products Q4FY23 Result Update:

• Vietnam operations are expected to contribute significantly to the company’s revenue growth, with around 40% of total revenue coming from Vietnam in FY2023.
• The Vietnam capacity of 16000 metric tonne has been utilized, and the new capacity which is coming up will be utilized by 50% in the current year.
• The new expansion in India is expected to commercialize operation in Q1 of FY2024-2025, while the new freeze-dried capacity in Vietnam is likely to come into commercialization in Q3 of 2025.
• The company is planning to set up a new facility in India with a capacity of 16000 metric tonnes SD, costing around 400 Crores, with the company contributing 80 Crores and the balance being availed in the form of debt.
• Coffee prices are expected to slowly soften once the new crop starts coming in from Indonesia and other regions.
• Guidance: Volumes and Revenue both are expected to increase by 20% for FY24. The company aims to double its volumes in four years and cross 10% addressable market share globally in the next three to four years. The tax rate for next year is expected to be around 12%.
• The company is looking to aggressively pursue the coffee vending business and is installing machines for large clients on a PAN India basis.