homebusiness Newscompanies NewsCCL Products on track to achieve branded segment revenue of over ₹200 crore in FY24
CCL Products on track to achieve branded segment revenue of over ₹200 crore in FY24
CCL Products (India) Managing Director Challa Srishant said the company had set a target of achieving over ₹200 crore in revenue from its branded consumer business in FY24.
Instant coffee manufacturer, CCL Products is on track to achieve the branded consumer (B2C) segment target of over ₹200 crore for FY24, the company's Managing Director, Challa Srishant told CNBC-TV18.
The company will also be able to meet its volume growth guidance of 18-20% in FY24, he said. "This year, the company did not focus much on volume growth in the domestic market due to capacity constraints. But new capacity will be available from April next year helping grow at 30-35% from next year," Srishant said.
Srishant also discussed advertising expenditures, noting that as the brand strengthens, it can command better pricing. He expressed optimism, saying, "In the next year, we anticipate significant growth. This year, we are allocating around ₹14-15 crore to brand spending, and next year, our target is to increase that to roughly ₹20-25 crore."
In Q2 of fiscal year 2024, CCL Products saw a 20% increase in revenue from operations, reaching ₹607.57 crore, compared to ₹506.56 crore in the previous year. EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin decreased to 18.1% from 19.3%. The profit after tax also increased by 5% to ₹60.86 crore, compared to ₹57.79 crore in the previous year.
Srishant mentioned that the lower volumes in Q2 were primarily due to a breakdown in their plant in Vietnam. However, he reassured investors that the Vietnam plant is now operational, and the company is confident of maintaining its volume growth for FY24 in the range of 18-20%.
In an interview in July, Shrishant outlined the company’s ambitious plan to double its revenue and profit over the next four years. He highlighted the positive global demand for their products and expressed confidence in CCL Products’ ability to gain market share through effective strategies.
Shares of CCL Products have declined more than 2% over the past month. The company's market capitalisation is around ₹8,446.61 crore.
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(Edited by : Shweta Mungre)
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