Coffee Day Enterprises reports 60% fall in consolidated net profit

 Coffee Day Enterprises (CDEL) announced a significant 59% increase in its net revenues for the fiscal year ending on March 31, 2023.

This marks a notable upturn from the previous fiscal year when the company reported revenues of Rs 582 crore.                  

In the fiscal year 2022-23, the company's integrated coffee division contributed Rs 869 crore to its total revenue.

The coffee segment accounted for 94% of the company's net income, while the hospitality sector 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 insights into the company's revenue, sales, debt status, and other pertinent information.

The publicly traded organization, established by the late VG Siddhartha, operates cafes, vending machines, and the hospitality sector under the Serai brand name.

During the fiscal year ending on March 31, 2023, the average daily sales per café experienced a substantial 42% rise, reaching Rs 20,622.

Additionally, the same store sales growth (SSSG) surged by 50.59% within the same timeframe. Chairman Ranganath also mentioned that the cafe network underwent further streamlining, with a total of 469 outlets now operating in 154 cities.

In the past year, the number of functioning vending machines grew by 26%, and the average daily revenue per machine saw a remarkable increase of 65.80%, reaching Rs 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, Coffee Day Enterprises' (CDEL) net debt decreased to Rs 1,524 crore, which is a decline from the Rs 1,694 crore reported a year earlier.

The company's debt structure consisted of long-term borrowings amounting to Rs 1,297 crore and short-term borrowings of Rs 303 crore as of March 31 this year.

An appeal has been lodged with the National Company Law Appellate Tribunal (NCLAT) contesting the NCLT's decision to commence insolvency proceedings against Coffee Day Global Ltd. (CDGL), the company that owns and manages the renowned Cafe Coffee Day chain.

Malavika Hegde, the Director of CDGL who is currently under suspension, has appealed to the Chennai bench of NCLAT opposing the NCLT's order to commence the Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global.

On Friday, the application requesting a stay on the NCLT order was scheduled for a hearing before an NCLAT bench consisting of Justice Rakesh Kumar Jain and Shreesha Merla.

On July 20, the Bengaluru bench of the NCLT issued a ruling regarding a petition submitted by IndusInd Bank, a financial creditor of the company, seeking payment of Rs 94 crore in dues.

Following the suspension of the board, the NCLT appointed Shailendra Ajmera as the interim resolution professional.

Malavika Hegde, who serves as a director on the suspended board of CDGL and is the wife of late VG Siddhartha, has contested the order.

During the fiscal year 2022-23, CDGL recorded a consolidated total income of ₹920.41 crore, while reporting a loss of ₹67.77 crore for the same period.

According to Coffee Day Enterprises Ltd's annual report for FY22, CDGL possesses 495 cafes operating in 158 cities and 285 CCD Value Express kiosks.

Additionally, the brand has 38,810 vending machines providing coffee services in corporate workplaces and hotels.

Coffee Day Enterprises has faced difficulties since the passing of its founder Chairman V. G. Siddhartha in July 2019.

To address its financial challenges, the company has been reducing its debts through asset resolutions and has considerably downsized its operations since the onset of these troubles.