How the tariff on Brazil will impact the coffee price ?, US has put 50% tariff on Brazil and brazil is the biggest exporter, will it make coffee price to go up?
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Any thoughts on the results? Seems high coffee prices has hit the P&L but business seems strong revenue wise.
I feel this is the beginning of their journey of turning into a midcap. Lower coffee prices effect will be seen in next few quarters as working capital requirement will be lower, leading to interest cost savings. With more capacity utilisation from the new plant, scale should aid profitability. Looking at cash flows, I feel debt could come down by 50% in 3 years which would lead to better valuations.
I have a large holding and am biased. have a look at my video uploaded few posts ago on CCL.
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How do you compare this with Vintage coffee ? Especially as Vintage coffee results have been quite stronger since last few quarters.
Disclosure - Not invested in either
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Only issue is the equity dilution. CCL has never diluted, but look at the level of dilution done in Vintage Coffee. And the business models are quite different too. My bet stays with CCL for now.
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Vintage coffee is a wrong comparison.
CCL has been a big player in the whole coffee space. They cater to lot of startups in the indian coffee space whereas vintage is just emerging.
Having said that, u can very well figure out the scale and then the capex being done by CCL vs vintage. And management has clarified that ebitda/kg is the correct metric to check for them. And with volume rising they are able to maintain these margins for sure.
Depreciation has stayed high and tax too. And management told that these things will come down as no capex is in works. Also, if coffee prices remain stable clients will lock in contracts vs in a volatile coffee price environment.
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My question is during Q4 concall did they mentioned the PAT will go up from Q1 and onwards. From when are we going to see PAT growing on yoy basis to create value creation for shareholders
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