Coffee Day Enterprises Ltd's Q1FY19 consolidated net profit declines 20.2% yoy to Rs21cr

The company’s consolidated revenue stood at Rs979.1cr, up 20.2% yoy, but down 13.4% qoq.

Aug 09, 2018 12:08 IST India Infoline Research Team

Coffee Day Enterprises Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 979.1 20.2
EBITDA 153.4 3.4
EBITDA Margin (%) 15.7 [256]
Net Profit (adjusted) 21 [20.2]
***EBITDA margin change is bps
Coffee Day Enterprises reported a mixed set of numbers for Q1FY19. Consolidated revenue for the company grew 20.2% yoy to Rs979.1cr. Though the gross margin for the company expanded significantly by 639bps yoy, higher logistics cost and other expenses led to lower EBITDA growth of 3.4% yoy to Rs153.4cr. EBITDA margin contracted by 256bps to 15.7%. Further, higher depreciation, interest, and tax outgo led to loss of Rs6.5cr before accounting for share of equity accounted investees (against Rs3.6cr profit in Q1FY18). Share of profit from equity accounted investees for the quarter was up by 21.1% yoy. Thus, adjusted PAT declined by 20.2% to Rs21.0cr. 
  • The strong revenue growth was led by broad-based growth across verticals except coffee and leasing businesses.
  • Coffee and related business segment remained flat on a yoy basis at Rs521cr. Revenue from financial services, logistics, and hospitality was up by 70.0%, 29.7%, and 10.3% yoy, respectively.
  • On the contrary, only the coffee business reported EBIT margin expansion on a yoy basis by 161bps. EBIT margin contracted by 761bps, 523bps and 463bps yoy for financial, logistics and hospitality segments, respectively.
  • The subsidiary, Coffee Day Global (CDGL), reported 7.1% yoy revenue growth with 172bps EBITDA margin expansion to 16.5%. PAT grew by 6.8% yoy to Rs10.5cr.
  • SSG for the quarter stood at 10.4% yoy, against 6.9% in Q1FY18 and 8.2% in Q4FY18. However, the other QSR players like Jubilant Foods and Westlife Development have reported strong double digit growth of 25.9% and 24.1%, respectively for the quarter.
  • As of June 2018, the Cafe network stood at 1,742 across 246 cities in India. The company added 30 cafes during Q1FY19. Further, the average sales per day (ASPD) grew 15.6% yoy (ex-GST impact) to Rs15,739 during the quarter.
  • CDGL continues to lead in the vending machine segment with a total of 49,397 machines, having added a gross of ~2,576 machines during Q1FY19.
  • During the quarter, the company entered an agreement with UBER (UberEats App) for the distribution of food products and beverages. It also launched a completely new "Totally Worth it Menu" starting at Rs29 to capture the mass market. 

Technical View:

Coffee Day Enterprises Ltd ended at Rs. 271.95, down by 0.85 points or 0.31% from its previous closing of Rs. 272.80 on the BSE.
The scrip opened at Rs. 277 and touched a high and low of Rs. 277.95 and Rs. 270.05 respectively. A total of 1,09,506 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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