CCL Products share slides after equipment break down at its Vietnam firm
The company said in its BSE filing on Friday (August 25, 2023) that interruption due the breakdown of equipment is likely to impact about 6 -10 per cent of its normal net profit on a consolidated basis.
In the first trading session after CCL Products announced that there was a breakdown of one of the key equipment at its Ngon Coffee Company Limited, Vietnam, the company's share slid in early trading hours on Monday (August 28, 2023). The share that opened at Rs 605.75 went as low as Rs 586.25 on Monday. The share was down 2.79 per cent at Rs 589.70.
The company that produces different brands of coffee informed the BSE on Friday (August 25, 2023) that there was a breakdown of one of the key equipments at its Ngon Coffee Company Limited, Vietnam, a material wholly owned subsidiary of CCL Products.
"Due to this, there will be production interruption during the quarter. This is likely to impact about 6 -10% of the normal net profit on a consolidated basis. However, the damage to the equipment and loss of profit are covered by insurance," the company said in the BSE filing on Friday.
"The exact loss/impact of the said breakdown can only be assessed and intimated in due course upon normalisation of operations," it further said.
The company sells its products under the brand name Continental. The company claims to have 900+ blends of coffee, four factories, and 400+ clients in 100+ countries
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