The equipment malfunction is likely to impact approximately 6-10% of the normal net profit on a consolidated basis for CCL Products (India). However, the company has assured stakeholders that the damage to the equipment and resulting loss of profit are fully covered by insurance.
CCL Products (India) further advised that an accurate assessment of the financial impact caused by the equipment breakdown will only be feasible once operations are back to normal. The timeline for the restoration of operations has not been specified at present.
CCL Products is a leading manufacturer and exporter of instant coffee and private label coffee products. It has become the largest exporter of instant coffee worldwide with a global clientele base in over 90 countries. It reported 7.3% fall in consolidated net profit to Rs 28.51 crore on an 8.4% increase in net sales to Rs 361.79 crore in Q1 FY24 over Q1 FY23.
