It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.

By the end of the year, coffee lovers will be paying up to $7 for a regular cup as cafes nationwide struggle to absorb growing overhead costs warned David Parnham, president of the Café Owners and Baristas Association of Australia.

“What’s happening globally is there are shortages obviously from catastrophes that are happening in places like Brazil with frosts, and certain growing conditions in some of the coffee growing areas,” Mr Parnham said.

“The cost of shipping has become just ridiculous.”

Key points:

  • Prepare to be paying up to $7 a cup by the end of the year
  • Shipping costs and natural disasters in coffee regions are being blamed for the price increase
  • Australians consume one billion cups of coffee annually, but cafe owners say an increase in price won’t change that

It’s nearly five times the container prices of two years ago due to global shortages of containers and ships to be able to take things around the world.

Frosts in Brazil have impacted supply.(Supplied: Melbourne Coffee Merchants)

The pain will be felt from the cities to the outback, but Mr Parnham said the increase was well overdue, with the average $4 price for a standard latte, cappuccino and flat white remaining stable for years.

“The reality is it should be $6-7. It’s just that cafés are holding back on passing that pricing on per cup to the consumer,” he said.

But roaster Raoul Hauri said it hadn’t made a dent in sales, with more than 300 customers still coming through the doors for their daily fix. “No one really batted an eyelid,” he said. “We thought we would get more pushback, but I think at the moment people understand.

“It is overdue and unfortunately it can’t be sustained, and at some point the consumer has to bear that.”

Paving the way for Australian producers

While coffee drinkers will be feeling the pinch, Australian producers like Candy MacLaughlin from Skybury Roasters hopes the increasing cost of imports will pave the way for growth in the local industry, allowing it to compete in the market.

“[In the ] overall cost of business, we haven’t been able to drop our prices to be competitive, so we’ve really worked on that niche base,” Ms MacLaughlin said.

“All those things will help us to grow our coffee plantation once more.”

Candy and her husband Marion produce 40 tonnes of coffee annually but they are prepared to scale up operations(Supplied)

She said the industry could eventually emulate the gin industry, with boutique operations cropping up across the country.

“I think the demand for Australian coffee at the moment is an ever-changing landscape and more and more Aussies are starting to question where their food comes from, who is growing it”

“What you will get is all these kinds of niche coffee plantations who develop a very unique flavour profile and then market in funky packaging and appeal to certain markets,” she said.

“That’s where I see the next stage of the Australian coffee industry going.”

37.9 C
Delhi

D’Decor Crosses ₹800 Cr Milestone in FY24, Profit Soars 20% Despite Market Challenges

Published:

By- Praveen Kumar | 15 April 2025 | 14:21 IST

In a year where the home décor industry faced stiff competition and global headwinds, D’Decor — India’s leading soft furnishings giant — proved its resilience by crossing the ₹800 crore revenue mark in FY24 and posting an impressive 20% spike in profits.

D’Decor reported ₹816 crore in revenue from operations, growing by 4.2% year-on-year from ₹783 crore in FY23, according to its consolidated financials filed with the Registrar of Companies (RoC). The company also earned an additional ₹37 crore from non-operating income, taking its total income to ₹853 crore — a robust achievement in a fiercely competitive and evolving landscape. D’Decor
D'Decor Furniture

 D’Decor: Designing Global Excellence

Specializing in luxurious soft furnishings — from elegant curtains and plush upholstery to premium bed and bath linens — D’Decor has carved a name for itself in over 65 countries, all while continuing to deepen its roots in the Indian market through a vibrant retail and online presence.

While the brand didn’t disclose its domestic vs. international revenue split, it remained laser-focused on its core offerings: fabrics and made-ups — the sole contributors to its revenue stream this fiscal.

Smart Spending, Sharper Returns

D’Decor showcased operational finesse by holding procurement costs at ₹308 crore (39.2% of total expenses), while simultaneously ramping up its brand visibility — increasing its advertising budget by a whopping 173% to ₹41 crore in FY24. The company’s focus on investing in brand recall while maintaining lean operations paid off handsomely.

Its total expenditure grew only modestly by 4%, rising from ₹755 crore in FY23 to ₹785 crore in FY24 — a testament to prudent financial management amid growth initiatives.

Profitability on the Rise

D’Decor’s bottom line saw a sharp 20.5% jump in net profit, climbing to ₹53 crore in FY24 from ₹44 crore in FY23. The company spent just ₹0.96 to earn every ₹1, underscoring its efficiency. What’s more, its Return on Capital Employed (ROCE) improved to 14.09%, and EBITDA margins stood strong at 17.80% — both signaling a healthy, performance-driven business.

Robust Financial Position

As of March 2024, the Mumbai-based company reported current assets worth ₹547 crore, including ₹224 crore in trade receivables — reinforcing its solid financial foundation as it scales up operations and looks at newer markets.

Competing in a Crowded, But Growing Arena

The home décor market in India is witnessing double-digit growth, buoyed by rising incomes and aspirations for better lifestyles. D’Decor competes with agile startups and digital-first brands like The Yellow Dwelling, Vaaree (backed by Peak XV), Furlenco, and Pepperfry, yet continues to hold its ground with unmatched quality and global reach.

Future Outlook: Steady, Strategic & Strong

While the export markets are currently in flux, D’Decor’s continued profitability places it in a strong position to weather global turbulence. Instead of chasing risky breakthroughs, the company appears to be betting on sustainable growth, enhanced brand recall, and deeper market penetration.

In a fast-paced and ever-evolving industry, D’Decor isn’t just surviving — it’s thriving. With its strategic bets, operational discipline, and unwavering focus on quality, D’Decor is poised to stitch together a future filled with opportunities, both in India and beyond. Entrepreneur Bulletin


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