Coffee Day Enterprises Limited — Important, 14-11-2024: Financial Result Updates

Coffee Day Enterprises Limited reported its consolidated financial results for the quarter and half-year ended September 30, 2024.

Revenue for Q2 reached ₹269 Cr, reflecting a growth of 4% year-over-year (YoY) and totalling ₹529 Cr for the half-year, marking a 5% increase. The growth is attributed to improved demand for coffee products and increased operational efficiencies.

The consolidated EBITDA for the quarter was ₹50 Cr, compared to a negative ₹75 Cr in the same quarter last year, indicating a recovery in profitability. For H1, EBITDA was reported at ₹93 Cr, a significant turnaround from a loss of ₹11 Cr YoY. The net loss attributable to owners reduced significantly to ₹3 Cr for Q2 from ₹110 Cr, and to ₹15 Cr for the half-year compared to ₹89 Cr last year, suggesting a strong recovery path.

Operational costs increased by 5% to ₹295.63 Cr for Q2 due to higher employee costs and finance charges, which were up significantly from the prior year. This reflects ongoing efforts to control costs while expanding operations.

In the balance sheet, cash and cash equivalents improved markedly to ₹218.45 Cr, up from ₹78.34 Cr at the end of the previous half-year, showcasing enhanced liquidity. The total debt remains a concern, with borrowings highlighted as a focus for management due to ongoing restructuring efforts with lenders.

Outlook seems cautiously optimistic as the company continues to focus on cost management and stabilizing its financial position amidst ongoing challenges. Given the financial performance improvements, investors may consider a buy or hold position depending on their risk appetite and market sentiment.