Coffee Day Enterprises Ltd, a Bengaluru-based espresso and hospitality agency arrange by late entrepreneur V.G. Siddartha, mentioned a international financial context, surrounded by geopolitical uncertainties, fluctuating commodity costs, and evolving trade dynamics, has shaped a challenging environment for the corporate.
Coffee Day Enterprises, in its FY25 annual report mentioned the present international state of affairs impacted market demand, inputs prices and funding priorities.
The firm additionally flagged sure monetary dangers it’d encounter sooner or later saying: If money circulation proves insufficient to fulfill monetary obligations, its standing as a “going concern’‘ might be invoked.
It said it faced competition risk with growing Westernisation and increase in the penetration of global players and growing popularity of individual themed cafés, and therefore it might be a challenge for it to maintain its existing consumer base, it informed shareholders through the annual document.
On economic risk, the firm that owns several subsidiaries including cafe chain Coffee Day, said sluggish growth of the economy impacted the spending power and subsequently reduced coffee consumption. Overall macroeconomic instability resulted in a lower demand and thus fluctuations in the economic scenario possessed a major risk to the business of the company.
On climatic risk, it wrote, bad monsoon might result in lower production of coffee leading to soaring high coffee prices. However, passing it to the customers would incur menu costs and loss in the price sensitive segment of the consumer base, indicating a fall in revenues and profit.
Coffee Day Enterprises, as on 31 March, 2025, had a total loan of ₹ 1,125 crore which consisted of long-term borrowings of ₹201 crore and short-term borrowing of ₹ 925 crore while its net debt stood at ₹ 836 crore.
Its current liabilities (excluding current borrowings of ₹ 925 crores) stood at ₹ 659 crores, comprising of lease liabilities of ₹51 crore, other financial liabilities of ₹348 crores, trade payables of ₹ 60 crores, other current liabilities ₹25 crores, current tax liabilities ₹ 142 crores and others.
The Company’s complete property decreased to ₹4,939 crores in 2024-25 from ₹5,104 crores in FY 2023- 24, representing a lower of three%. This lower in complete property is especially on account of remeasurement deferred tax balances utilizing the revised tax charge of ₹ 132 crore, it mentioned. FY25 additionally witnessed a networth erosion of at 6% to ₹ 2,946 crores, in comparison with ₹ 3,130 Crore within the earlier 12 months. Its reserves and surplus stood at ₹2,379 Crores as at 31 March, 2025.
