CCL Products Targets 22% Revenue, Profit Growth For FY25

Continental Coffee maker CCL Products India Ltd. expects to clock a revenue and profit growth of around 22% in the current financial year, despite challenges of high global coffee prices, the company’s Chief Executive Officer Praveen Jaipuriar said.

CCL Products reported a 21.5% year-on-year increase in its consolidated revenue for the September quarter to Rs 738 crore from Rs 608 crore in the same quarter a year ago.

Ebitda rose 24.6% to Rs 137 crore, while margins stood at 18.6%. The company’s net profit, however, slipped 21% YoY at Rs 73.9 crore versus Rs 60.9 crore.

Jaipuriar told NDTV Profit that the company expects to sustain the Q2 revenue growth rate for the full year. “We have finished half a year and are around 21–22% value growth. We hope to continue similar trends. If you add that, we are looking at probably Rs 3,200 to Rs 3,300 levels of topline.”

Overall, Jaipuriar highlighted that the company expected a similar trajectory for profit after tax. “At Ebitda levels too, we are experiencing similar kinds of growth. Last year, we were around Rs 450 crore of Ebitda. So there will be a 21–22% top line growth and bottom lines may also be in a similar range. Margins will also be similar,” he added.

Dismissing concerns about high coffee prices affecting revenue growth, the CEO said, “We don’t see much of a stress (of coffee price spike) in the top line or bottom line.”

However, Jaipuriar acknowledged that there were challenges in terms of volume growth. “If you track our quarter-on-quarter performance of the last 2–3 years, you will see we were very aggressive on volumes at about 20%. That becomes a little bit of a challenge, which is why we gave the guidance of 10–20% volume growth.”

The long-term contracts for the company have not really revived and the trend continues to be the same, Jaipuriar noted. “Actually, long-term contracts come in when there is stability in the market. Our challenge is that the market has been volatile. There have been ups and downs. So people get into a wait-and-watch mode. That is what we are experiencing.”

Referring to long-term contracts, CCL Products CEO said, “We are expecting that post-December when the Vietnam crop comes in, there will be a sense of stability. That is when we will get the long-term contracts.”

Shares of CCL Products India Ltd. closed 6.36% higher at Rs 712.05 apiece on the NSE on Wednesday. In comparison, the benchmark Nifty 50 closed 1.12% higher at 24,484.05.