Coffee Day Enterprises recently disclosed its financial performance for the fiscal year ending on March 31, 2023. The company reported a substantial increase in net revenues, surging by 59% to reach Rs 924 crore compared to Rs 582 crore in the previous fiscal year. Notably, the company’s consolidated coffee business played a pivotal role, contributing Rs 869 crore to its total revenue. In fact, coffee business accounted for a remarkable 94% of CDEL’s net revenues, while hospitality and other operations made up the remaining 5% and 1%, respectively.
CCD Revenue Surges By 59% Share Price Seems Very Bullish
During the annual general meeting (AGM) held in Bengaluru, SV Ranganath, the Chairman of the company provided insights into various aspects of CDEL’s performance. The company known for its cafes, vending machines and hospitality operations under the Serai brand, achieved a 42% increase in the average daily sales per café, reaching Rs 20,622. Additionally, the same-store sales growth surged by 50.59% during the same period.
CDEL’s café network witnessed further expansion, with 469 outlets spanning 154 cities. Operational vending machines also increased by 26%, and the average daily revenue per machine saw a substantial 65.80% boost, reaching Rs 431. As of March 31, the company had 48,788 operational vending machines.
A notable highlight was the reduction in net debt, which decreased to Rs 1524 crore compared to Rs 1694 crore the previous year. This reduction in debt was attributed to the company’s long-term borrowings of Rs 1297 crore and short-term borrowings of Rs 303 crore as of March 31, 2023.
Ranganath acknowledged the growth in the urban café market, driven by a receptive working population embracing Western cuisines and baked goods. He also highlighted the recovery of the hospitality industry in fiscal year 2023 after facing setbacks due to the pandemic. CDEL’s adoption of state-of-the-art technology, including AI for video analytics to understand customer preferences, has contributed to its success.
Furthermore, the introduction of new snacks and beverages, along with cafe and resort renovations, has enhanced the company’s revenue. CDEL’s net worth stood at Rs 3,376 crore as of March 31, 2023, marking an 11% decrease from the previous year’s Rs 3,775 crore. This net worth included paid-up equity share capital, non-controlling interests and company reserves and surplus.
Regarding recovery of dues, CDEL was in consultation with Crest Law, an independent law firm appointed by the NSE, to recover outstanding dues from Mysore Amalgamated Coffee Estates Ltd as per a SEBI order dated January 24, 2023. Crest Law is in the process of finalizing the draft suit to be filed against MACEL on behalf of CDEL’s subsidiaries.