CCL Products Reports 52.7% Revenue Growth in Q2, Expands FMCG Footprint
CCL Products (India) Limited achieved strong Q2 results with revenue up 52.7% to INR 1,128.21 crores. Net profit increased by 36.4% to INR 100.86 crores. The company reported robust domestic market performance with gross sales of INR 160 crores in Q2. CCL Products is expanding into new product categories like iced tea and snacks, aiming to transform into an FMCG company. The company is investing in renewable energy and plans to double its direct distribution reach in the next three years. CCL Products maintains its guidance of 15-20% EBITDA growth for the full year.
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CCL Products (India) Limited , a leading coffee manufacturer, has reported a strong financial performance for the second quarter, with significant growth across key metrics and expansion into new product categories.
Financial Highlights
The company achieved a 52.7% year-on-year growth in revenue, reaching INR 1,128.21 crores in Q2 compared to INR 738.74 crores in the same quarter last year. This robust performance was accompanied by substantial improvements in profitability:
| Metric | Q2 | Q2 Previous Year | Growth |
|---|---|---|---|
| Revenue | 1,128.21 | 738.74 | 52.7% |
| EBITDA | 198.61 | 137.62 | 44.3% |
| Net Profit | 100.86 | 73.94 | 36.4% |
All figures in INR crores
For the first half, CCL Products reported:
- Revenue of INR 2,186.25 crores, up 44.5% year-on-year
- EBITDA of INR 360.05 crores, a 33.7% increase
- Net profit of INR 173.31 crores, growing by 19.2%
Domestic Market Performance
The company's domestic market showed strong momentum:
- Gross sales of INR 160 crores in Q2 and INR 310 crores in H1
- Branded business contributed INR 210 crores in H1
- Volume growth exceeded 20% for the quarter
Operational Insights
- Capacity Utilization: The company reported a blended capacity utilization of 65-70% for the quarter, with new capacities operating at 15-20% utilization.
- EBITDA per kg: Improved to approximately INR 130, up from INR 120 in the previous quarter, driven by better product mix and operational efficiencies.
- Debt Reduction: The company maintains its guidance of reducing net debt to INR 1,350 crores by December and INR 1,200 crores by March.
Strategic Initiatives
CCL Products is actively pursuing its vision to transform into an FMCG company:
- Expansion into new product categories, including iced tea and snacks
- Test marketing of new products to ensure market fit before full-scale launches
- Direct distribution to 130,000-140,000 outlets, with plans to double this reach in the next three years
- Investment in renewable energy through a 26% stake in Mukkonda Renewables, aiming to meet 50-60% of energy requirements through green sources
Market Outlook
The green coffee market remains volatile, with conflicting reports about crop conditions, particularly in Vietnam. The company is closely monitoring the situation and expects more clarity by December when the new crop starts flowing.
CCL Products maintains its guidance of 15-20% EBITDA growth for the full year, with expectations leaning towards the higher end of this range.
Management Commentary
Praveen Jaipuriar, CEO of CCL Products, stated, "We are seeing strong growth across our business segments, with our branded business and private label operations both contributing significantly. Our strategic initiatives in new product categories and distribution expansion are progressing well, positioning us for sustained growth as we evolve into a comprehensive FMCG company."
As CCL Products continues to diversify its product portfolio and strengthen its market presence, the company appears well-positioned to capitalize on growth opportunities in both domestic and international markets.
Historical Stock Returns for CCL Products
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.42% | -0.18% | +12.20% | +10.60% | +24.13% | +269.79% |
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