Conference Call with Radico Khaitan Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Breweries & Distilleries company Radico Khaitan announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Total IMFL volume of 7.16 Million Cases (-1.2%) Prestige & Above brands volume of 2.92 Million Cases (+14.2%) Prestige & Above brands net sales of Rs 503.5 crore (+16.1%) Prestige & Above brands contribution to the IMFL volumes of 49.6% (vs. 40.2%) Prestige & Above brands contribution to the Total IMFL sales value of 73.2% (vs. 65.8%) Revenue from Operations (Net) of Rs 1,078.7 crore (+29.7%) Gross Profit of Rs 442.0 crore (+31.0%) at 41.0% margin EBITDA of Rs 125.6 crore (+56.8%) at 11.6% margin Total comprehensive income of Rs 59.1 crore (+62.1%) FY24 Financial Highlights: Total IMFL volume* of 28.73 Million Cases (+1.7%) Prestige & Above brands volume of 11.26 Million Cases (+20.3%) Prestige & Above brands net sales of Rs 1,932.4 crore (+29.2%) Prestige & Above brands contribution to the IMFL volumes of 45.6% (vs. 37.5%) Prestige & Above brands contribution to the Total IMFL sales value of 68.5% (vs. 59.8%) Revenue from Operations (Net) of Rs 4,118.5 crore (+31.0%) Gross Profit of Rs 1,752.0 crore (+33.2%) at 42.5% margin EBITDA of Rs 507.3 crore (+41.6%) at 12.3% margin Total comprehensive income of Rs 256.7 crore (+26.7%) Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said: “FY2024 has been a year of consolidation for Radico Khaitan. During the year, we delivered strong operational performance despite a difficult macroeconomic environment. We ended the year with robust Prestige & Above brand volume growth, underscoring the strength of our brand portfolio and excellent execution capabilities. Radico Khaitan has been strengthening its core brands through focused marketing investments and launching select new brands in the super-premium and luxury segments. We remain focused on implementing our strategic plan by driving operational efficiency, introducing innovative products, and expanding our presence both on-trade and off-trade to sustain long-term profitable growth. During the year, we completed the commissioning of our 350 KLPD distillery at Sitapur. The commissioning of this facility not only secures long-term ENA supplies but also positions us strongly to capitalize on future growth opportunities in the branded business with enhanced bottling capacities. With rising affluence, low per-capita consumption levels, and a strong premiumization trend, we are confident in the mid-to long-term potential of the Indian alcobev sector. To continue serving discerning consumers, Radico Khaitan is progressing well on its brand creation journey with innovation and consumer aspirations at its core, backed by our integrated manufacturing facilities and distribution platform.” Commenting on the results and performance, Abhishek Khaitan, Managing Director said: “Radico Khaitan continues to deliver robust premium volume growth driven by our integrated brand strategy. We remain committed to a focused product portfolio of premium brands where consumer aspirations drive brand choice. From ideation to blend development, packaging, marketing, brand communication, distribution, and delivering value to consumers, we have a well-defined roadmap at each stage of the product life cycle. We are confident that these strategies will continue to help us deliver balanced growth and value creation for all our stakeholders. While the premium segment continued to see strong positive traction, demand trends in the regular category remained below expectations owing to a general up-trending by certain consumers and a slowdown at the lower end. Given our premiumization focus, our Prestige & Above category brands today account for 46% of our IMFL sales volume and 69% of IMFL sales value. In this context, it is heartening to note that the Magic Moments brand family has achieved 6.3 million case sales and crossed the milestone of Rs. 1000 Crore in sales value, growing at 25% over last year. During FY2024, while the prices of certain packaging materials have been stable, the cost of grain, ENA, and glass has been volatile. This has led to significant pressure on our gross margins. However, with our premium product mix and price increases, we have been able to offset the pressure of raw material prices. With the expectations of a normal monsoon and better crop yield, we are seeing early signs of softening grain prices. We believe that the worst of the input cost increases is behind us, and we expect to benefit from any tailwinds in raw material prices in FY2025.” Result PDF