Quarter summary

• The new F&B facility in India commenced operations in March '24, and the FD facility in Vietnam remains on schedule for commercial operations by Sep/Oct '24.
• The domestic branded business demonstrated strong performance, achieving INR 210 crores in sales (out of INR 320 crores India sales) and establishing itself as the #3 player in South India with 4-4.5% market share.

Rationale

• Despite robust top-line growth (FY24 revenue up 28% YoY, Q4 up 40% YoY) and 12% YoY EBITDA growth for FY24, the company reported a decline in PBT (INR 276 crores vs. INR 305 crores last year) and PAT (INR 250 crores vs. INR 283.96 crores last year) for the full fiscal year, primarily due to higher interest costs and depreciation from recent expansions.
• FY24 volume growth of ~14% significantly missed the previously guided 18-20%, attributed to a Q2 unit breakdown and challenging customer acquisition in Q3/Q4 due to unprecedented coffee price volatility.

Quarter summary

• The company demonstrated strong operational performance with significant growth in top-line and EBITDA, particularly driven by robust domestic branded sales.
• Persistent high and volatile global coffee prices are causing customers to defer long-term commitments, resulting in low visibility for future contracts and increasing working capital needs.

Rationale

• Group turnover increased by a healthy 18% YoY to Rs. 773 crores, and EBITDA grew by an even stronger 23% YoY to Rs. 131.6 crores, indicating good operational leverage and execution.
• The domestic market demonstrated robust performance, with branded sales growing approximately 45-50% YoY to Rs. 65 crores, contributing to the overall India business growing 40% YoY to ~Rs. 95 crores.

Quarter summary

• Strategic shift towards higher-margin clients and value-added products is driving profitability and EBITDA expansion beyond volume growth.
• The domestic B2C branded coffee business (Continental Coffee) is demonstrating exceptional growth and market outperformance, becoming a significant future value driver.

Rationale

• Consolidated turnover grew 21.5% YoY in Q2 FY25 to INR 738.2 crores and 20% YoY in H1 FY25 to INR 1,511.49 crores, demonstrating strong top-line momentum.
• EBITDA significantly outpaced volume growth, increasing 24.3% YoY in Q2 FY25 to INR 137.6 crores (vs. ~10% volume growth), driven by a strategic shift towards higher-margin clients and value-added products.

Quarter summary

• Robust growth in revenue and EBITDA driven by strong domestic business performance and market share gains.
• Navigating persistent green coffee price volatility through B2B cost-plus model and calibrated B2C price increases, though B2B long-term visibility is impacted.

Rationale

• CCL Group achieved strong revenue growth of 14.13% YoY in Q3 FY25 (Rs. 758.4 crores) and 17.8% YoY YTD (Rs. 2,269.9 crores), indicating robust top-line performance despite a challenging environment.
• EBITDA increased by 13.53% YoY in Q3 FY25 (Rs. 127.22 crores) and 20.37% YoY YTD (Rs. 396.46 crores), leading to an improvement in EBITDA margin YTD (17.47% vs 17.09% previous year YTD) and per-kg margins.

Quarter summary

• CCL Products achieved a significant milestone by crossing INR 3,000 crores in full-year turnover for FY25.
• The company demonstrated exceptional profitability growth and margin expansion, particularly in Q4, driven by a strategic shift towards higher-value customer segments and optimized product mix.

Rationale

• **Exceptional Profitability Growth & Margin Expansion:** Achieved 56.2% YoY net profit growth in Q4 FY25 (INR 101.87 crores) and 24.1% YoY net profit growth for FY25 (INR 310.34 crores). Q4 FY25 EBITDA grew by an estimated 38% YoY, signaling significant margin expansion driven by mix shift and internal efficiencies.
• **Strong Revenue Growth & Milestone Achievement:** Recorded a Q4 FY25 turnover of INR 839.65 crores (+14.9% YoY) and crossed the INR 3,000 crores milestone for FY25 with a turnover of INR 3,114.2 crores (+17.1% YoY).

Quarter summary

• Record quarterly turnover crossing INR 1,000 crores for the first time, reflecting strong operational scale-up.
• Aggressive market share gains and growth momentum in the domestic branded business, positioning it as a key driver for future profitability.

Rationale

• Revenue grew robustly by 37% YoY to INR 1,058 crores, marking the first time the company achieved INR 1,000 crores in a quarter, indicating strong top-line momentum.
• EBITDA grew by 23% YoY to INR 161.43 crores, meeting and exceeding the guided 15-20% volume/EBITDA growth despite market volatility.

Quarter summary

• Exceptional top-line and bottom-line growth driven by robust volumes in both B2B and B2C segments.
• Significant market share gains and strategic expansion in the domestic branded coffee business, alongside a clear long-term vision to evolve into a broader FMCG company.

Rationale

• Financial performance is exceptional with Q2 FY26 turnover growing 52.7% YoY to INR 1,128.21 crores, and net profit growing 36.4% YoY to INR 100.86 crores. H1 FY26 also saw robust growth with turnover up 44.5% and net profit up 19.2%.
• Volume growth is strong and sustainable, with Q2 volumes up 20%+ and H1 volumes up ~15%, indicating fundamental demand rather than just price inflation.