On Friday, Coffee Day Enterprises (CDEL) announced a significant increase in its net revenues for the fiscal year ending on March 31, 2023. The company reported a remarkable 59% surge, reaching INR 924 crore, in contrast to the INR 582 crore recorded in the preceding fiscal year.
In the fiscal year 2022-23, the company’s consolidated coffee business played a significant role in its financial performance by contributing INR 869 crore to the top line. This segment accounted for a substantial 94% of the company’s net revenues, while hospitality contributed 5%, with the remaining 1% coming from other operations.
During the annual general meeting (AGM) held in Bengaluru on Friday, Company Chairman SV Ranganath provided a comprehensive overview of the company’s financials, including revenue, sales, debt status, and other pertinent information. The company, established by the late VG Siddhartha, is publicly listed and operates cafes, vending machines, and its hospitality venture under the Serai brand name.
During the fiscal year ending on March 31, 2023, the average daily sales per café experienced a notable surge, rising by 42% to reach INR 20,622. Simultaneously, the same-store sales growth (SSSG) surged by an impressive 50.59% over the same period. Ranganath reported that the café network achieved further consolidation, boasting 469 outlets spread across 154 cities.
In the past year, the number of operational vending machines saw a notable uptick, surging by 26%. At the same time, the average daily revenue per vending machine experienced a substantial increase of 65.80%, reaching INR 431. As of March 31 of this year, the total count of operational vending machines stood at 48,788.
As of March 31 this year, CDEL’s net debt decreased to INR 1,524 crore, which is a decline from INR 1,694 crore reported a year earlier. Specifically, the company had INR 1,297 crore in long-term borrowings and INR 303 crore in short-term borrowings as of March 31 this year.
The cafe market has been witnessing significant growth in the urban areas where a larger working population is inclined to accept western cuisines as well as baked products, Ranganath said. “Our vending business has also strongly benefited from our Café Network and Customer brand loyalty, apart from its world class range of products and machines…The hospitality industry, which suffered a significant setback due to the pandemic in the past two years, has experienced a reversal of fortunes in the fiscal year 2023 and is now steadily heading towards its growth path.”
The company, as highlighted by the CDEL Chairman, is leveraging cutting-edge technology to maintain a competitive edge. By implementing AI, they have enabled video analytics for a more insightful understanding of customer preferences and choices in cafes. Furthermore, the introduction of new snacks and beverages has contributed to revenue growth. The revitalized designs and renovations of cafes and resorts are enhancing the ambiance for both formal meetings and casual gatherings.
As of March 31, the Company’s net worth amounted to INR 3,376 crore, marking an 11% decrease from the INR 3,775 crore reported on March 31, 2022. This net worth was composed of a paid-up equity share capital of INR 211.3 crore, non-controlling interests amounting to INR 158 crore, and the company’s reserves and surplus totaling INR 3,007 crore as of March 31, 2023.
According to the SEBI order dated January 24, 2023, the company was in discussions with Crest Law, an independent law firm appointed by NSE, to initiate actions aimed at recovering outstanding dues owed to CDEL’s subsidiaries by Mysore Amalgamated Coffee Estates Ltd (MACEL). Crest Law is currently in the final stages of preparing the draft lawsuit to be filed by the company’s subsidiaries against MACEL.
