CCL Products brews 110% growth in Q1 net

CCL Products (India) Limited, formerly Continental Coffee Limited, has recorded a 110 per cent growth in net profit at Rs 3.62 crore for the first quarter ended June 2004 as compared to Rs 1.72 crore for the corresponding period of the last financial year.

The growth in net profit was despite a fall of 27 per cent in turnover to Rs 15.16 crore from Rs 20.72 crore.

The company in a press release said that the fall in turnover was mainly due to the strike by the port workers at Chennai in May, which affected exports. As the strike has been called off, the second quarter results are expected to be better.

During the first quarter, the company's production was 1,141 tonnes and exports were 905 tonnes as compared to 886 tonnes of total production and 1,090 tonnes of exports in the first quarter of 2003-04.

The company has commenced works on a freeze-dried coffee manufacturing plant at Duggirala in Guntur district. The plant is expected to commence trial production by October 2005 and commercial production by December 2005. The new plant would have a capacity of 1,500 tonnes.

When the plant goes on stream, CCL will become India's first integrated instant coffee manufacturer and exporter.

CCL managing director C Rajendra Prasad earlier said that the company had earmarked Rs 125 crore for the project to be implemented in phases.

The first phase which involves the freeze-dried coffee plant would be completed by November 2005, he said. The company has tied up with Niro of Denmark and Strategic Soluble Services Limited of the UK for technical support and know-how.

Post-acquisition of the UK-based Associated Coffee Merchants (International) Limited, the consolidated turnover of CCL Products is Rs 47 crore and the net profit is Rs 3.74 crore.

The consolidated figures are not comparable with the last year as CCL acquired the UK company in March 2004.

The third and fourth quarters of the year being the peak coffee consumption period, the subsidiary's earnings' impact on CCL will be evident only at the end of the financial year.