The shares of Coffee Day Enterprises Ltd (CDEL) were up almost 6 percent on August 16 morning as investors cheered the Cafe Coffee Day chain operator's return to profit in the June quarter.
The company reported a net profit of Rs 21 crore against a loss of Rs 17 crore in the year-ago period. Revenue rose 18 percent to Rs 247 crore and earnings before interest, tax, depreciation, and amortisation (EBITDA) nearly doubled to Rs 63 crore.
Subsidiary Coffee Day Global Limited’s net revenue rose 23 percent year-on-year to Rs 233 crore and EBITDA surged 58 percent to Rs 26 crore.
The coffee maker’s average sales per day (ASPD) increased to Rs 20,824 from Rs 19,537 in the year-ago period. The same store sales growth (SSSG) stood at 7.6 percent in the quarter.
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The cafe outlets count decreased to 467 from 493 in the same quarter of the previous year but the vending machine count grew to 50,870 from 46,603.
The stock has had a poor run in the past year, shedding nearly 20 percent. The last six months, however, have been better, with the stock gaining 1.2 percent.
In January, SEBI imposed a Rs 26 crore penalty on CDEL for diverting Rs 3,535 crore from seven subsidiaries to Mysore Amalgamated Coffee Estates Limited (MACEL), an entity connected to the company’s promoters.
At 11.06 am, the stock was trading at Rs 39 on the National Stock Exchange, up 5.83 percent from the previous close.
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