Q1 2027 Vintage Coffee and Beverages Ltd Earnings Call Transcript
Key Points
- Revenue for Q1 FY27 grew 58.4% year-over-year to INR 161 crore, driven by strong demand and improved operating scale.
- EBITDA increased 75.2% year-over-year to INR 31.6 crore, with PAT rising 46.1% to INR 20.8 crore, demonstrating robust profitability.
- Successfully expanded total installed capacity by 69% to 11,080 metric tons, funded entirely through internal accruals, with the new capacity fully operational in Q1 FY27.
- NCLT approved the amalgamation of wholly-owned subsidiaries, which is expected to improve operational efficiency, reduce administrative costs, and create economies of scale.
- Secured land and advanced equipment orders for a new 5,500 metric ton freeze-dried coffee plant, with letters of intent covering 70-80% of its capacity from both existing and new customers.
- Maintained high customer retention (98%) by developing exclusive blends, providing strong volume visibility for the full year despite quarterly price resets.
- Geographical diversification is strong, with sales spread across West Africa (30%), Russia/CIS (22%), Southeast Asia (20%), Europe (10%), and Central America (15%), reducing dependence on any single market.
- Management guided for a positive operating cash flow for FY27 and expects consolidated EBITDA margins to improve to 23-24% with the freeze-dried coffee expansion.
- Q1 FY27 revenue declined sequentially due to the seasonal lean period, which is typical for the industry but still impacts short-term performance.
- Green coffee prices remain volatile, with management expecting them to stay in a broad range of $3,500-$3,800 per metric ton, posing a risk to input costs.
- Geopolitical tensions in the Middle East led to higher LPG and diesel prices and modest increases in transit times, though the impact was noted as negligible.
- Working capital days are high at 120-130 days, which is a significant cash flow drag, though management expects to maintain this level.
- The freeze-dried coffee project is still under construction, with production not expected to start until Q2 FY28, delaying potential revenue and margin benefits.
- EBITDA per kg can be negatively impacted if the product mix shifts more towards bulk packaging rather than consumer packs, which carry higher margins.
- The company has not added new customers in Q1 FY27 due to the lean period, indicating a potential slowdown in customer acquisition during this phase.
Ladies and gentlemen, good day and welcome to Q1 FY27 conference call to discuss operational and financial performance for Vintage Coffee and Beverages Limited with it by Novama Wells. As a reminder, all buy-spin lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch tone form. Please note that this conference is being recorded.
I now hand the conference over to Mr. Palash Kawale from Novama Wealth.
Thank you and over to you, Mr. Kawale.
Thank you. Good morning, everyone. I welcome you all on behalf of Novama Wealth. I thank the management of Vintage Coffee and Beverages Ltd for the opportunity to host their Q&A FY 27 earnings call.
We have with us today Mr. Balakrishna Tati, Chairman and MD, Mr. Sai Teja Tati, Executive Director, Mr. Kranti Kumar Yerkali, Chief Financial Officer
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