Cafe Coffee Day reports growth in Q3 despite demonetisation

first_img[Representational image]Reuters fileCoffee Day Enterprises Ltd. (CDEL) posted modest increase in its coffee business for the December 2016 (Q3) quarter, though the consolidated net profit rose 146 per cent YoY. The stock was trading 2.15 per cent higher at Rs 230 on the BSE at around 2.20 pm, lower than its issue price of Rs 328 when it raised funds through its IPO in October 2015.Read: CDEL shares near 52-week lowThe coffee business (Coffee Day Global Limited, or CGDL) reported net profit of Rs 7.6 crore and revenues of Rs 408 crore in Q3 in comparison to Rs 7.1 crore and Rs 359 crore, respectively, in the corresponding quarter the last financial year. “For Q3FY17, CDGLreported 6.08% SSG and an ASPD of Rs 14,815 (vs. Rs 14,043 for Q2FY17 and Rs 13,747 for Q3FY16) – a significant increase in the backdrop of demonetisation announced on November 8. Specifically on demonetisation, we did see some impact in our cafe sales in the pt and 2nd week post the announcement of demonetisation but subsequently our sales recovered with the ASPD approaching the Rs15,000 mark,” V G Siddhartha, CMD of CEDL, said in a statement.SSG refers to same store sale while ASPD is average sale per day.On a consolidated basis, CCDL reported net profit and revenues of Rs 12.3 crore and Rs 866 crore, translating into growth of 146 per cent and 14 per cent, respectively, on a year-on-year (YoY) basis.Coffee business contributes about 48 per cent to CDEL’s total revenues, with the rest coming from financial services (Way2Wealth), logistics (Sical), leasing of office space (Tanglin) and hospitality business.The company added 19 Cafe Coffee Day (CCD) oultets during Q3 to take the total number of outlets to 1,654 while vending machines stood at 40,013, an addition of 1,489 during the quarter.To put things in perspective, Starbucks had 22,557 global coffee shops at the end of calendar year 2015, followed by McCafe at 5,044, according to The Statista.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *