CCL products –
Q4 and FY 24 results and concall highlights –
Q4 outcomes –
Revenues – 727 vs 520 cr
EBITDA – 118 vs 113 cr
PAT – 65 vs 85 cr ( due higher interest and depreciation charges )
FY 24 outcomes –
Revenues – 2654 vs 2071 cr
EBITDA – 445 vs 400 cr
PAT – 250 vs 269 cr ( due higher interest and depreciation charges )
Current Debt @ 1620 cr
Company is one of the largest private label coffee manufacturers in the world. Currently exporting to over 90 countries
A total of 04 Manufacturing facilities –
Duggirala, AP
Kuvvakoli, AP
Switzerland Plant
DakLak, Vietnam
Domestic business sales @ 320 vs 250 cr YoY. Out of this, 210 cr was branded business and 110 was private label business. Branded business grew by 40 pc in FY 24. Aim to grow @ > 30 pc for FY 25 as well
Full FY 24 volume growth @ 14 pc
Guiding for a volume growth of 18-20 pc for next 2-3 yrs
Coffee prices continued to remain at all time highs in Q4 which made new customer acquisition a big challenge. Also, it deterred the existing customer to get into long term contracts. Company hopes that as the Indonesian, Ugandan and Brazilian crop comes in, prices may moderate
Company believes that the current coffee prices ( at record highs ) are untenable and are likely to correct
Currently running at max capacity utilisation in India and around 60-65 pc utilisation in Vietnam
Aim to grow India branded sales by 30-40 pc in FY 25. In South India, Company’s brands have already reached 4 pc mkt share
Company had acquired 02 coffee brands in UK – Percol ( about 1 pc mkt share in UK ) and Rocket Fuel. Currently revamping their packaging and graphics for a re-launch. Also looking to take these brands to some other geographies
Despite the record high coffee prices, not seeing any demand moderation at the end consumer level. This gives the company the confidence that they should be able to clock the high teens volume growth that they are guiding for
Looking to enter newer export markets markets as more manufacturing capacities come on-stream
High coffee prices are causing the smaller players in the Industry to go through extremely tough times. Company keeps getting sell out proposals from smaller players on a frequent basis because of such tough operating environment Company hasn’t acted on them because their organic additional capacity is coming on stream in Vietnam in Sep-Oct 24
Out of a total debt of 1600 cr, 1000 cr is short term debt to fund the working capital requirements. Since this working capital is against firm orders, hence the company is not worried about high debt levels
Once the Vietnam Freeze Dried capacity comes on stream in Sep-Oct 24, company will hit 77k MT of capacity.
Current capacity ( post the expansion in India which was completed in Mar 24 ) stands at 71k MT
Post that, company won’t need to invest in incremental capex for next 2-3 Yrs
Once this facility comes up, company will start targeting LATAM mkts more aggressively. Previously they were capacity constrained and were going slow on expansion into newer geographies
Disc: holding, biased, not SEBI registered
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