In a gruelling work cycle, it is hard to imagine the day without a coffee mug in your hand on week days; on the weekends, the enticing aroma of coffee beans from that little cafe across the street may have you spending a buck or 10 more.
Coffee is a near-necessity for most of us in the every day hustle, and as the economy would have it, Robusta prices have stabilised in the past one year, sliding down around 35% from their all-time highs.
However, a particularly unpredictable climate may lead to some spikes in these prices, according to Vintage Coffee CMD Balakrishna Tati.
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Even as coffee prices eased, they still remain 70% above their 20-year average. In the recent month, though, they have broadly to a range.
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'“The prices have slightly stabilised now. Actually, it has come down slightly to the levels where we were expecting, at around Rs 3,400 to Rs 3,500, and I think this is the level which we settled at," Tati outlined.
He added that going ahead, prices will most likely remain the same because information and reports point to healthy crops, which is will hardly change in the months to come.
Notably, he flagged a possibility of any adverse effect on the environment impacting crops in Brazil. In this case, he said, "the prices may slightly move upwards."
Vintage Coffee Outlook
The CMD gave a bullish outlook for vintage coffee and said that capacities have been ramped up from 4,500 metric tonnes to 6,500 metric tonnes and now stand around 11,000 metric tonnes.
"We are moving now to specialty coffees, adding premium products like a freeze-dried coffee plant, which is likely to come up next year. Once that comes up, we will enter the premium products market," Tati explained.
He underlined that going ahead in FY27, margins are also going to improve on the back of steady capacity expansion.
Vintage Coffee Q1FY27
Vintage Coffee reported a 58.5% year-on-year rise in revenue to Rs 161 crore in the first quarter of the current fiscal, compared to Rs 101.6 crore a year ago.
Ebitda rose 75.2% to Rs 31.6 crore from Rs 18 crore, with Ebitda Margin improving to 19.6% from 17.7% year-on-year, in a traditionally lean season for the soluble coffee business.
Net profit increased 46% to Rs 20.8 crore from Rs 14.2 crore. The company recorded sales volume of 1,856 MT during the quarter.
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