Conference Call with Radico Khaitan Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Breweries & Distilleries company Radico Khaitan announced Q3FY24 & 9MFY24 results: Q3FY24 vs Q3FY23: Total IMFL volume reached 7.25 million cases, showing a growth of 3.7%. Prestige & Above brands volume amounted to 3.11 million cases, marking a significant increase of 20.2%. Prestige & Above brands net sales totaled Rs 519.7 crore, reflecting a substantial growth of 29.1%. Prestige & Above brands contributed 49.9% to the IMFL volumes, compared to 42.4% previously. Prestige & Above brands contributed 71.3% to the Total IMFL sales value, compared to 63.4% previously. Revenue from Operations (Net) stood at Rs 1,160.9 crore, exhibiting a notable growth of 46.6%. Gross Profit amounted to Rs 485.8 crore, showing a significant increase of 48.4% with a margin of 41.8%. EBITDA stood at Rs 142.2 crore, showing a growth of 47.6% with a margin of 12.2%. Total comprehensive income amounted to Rs 73.4 crore, showing a growth of 29.5%. 9MFY24 vs 9MFY23: Total IMFL volume reached 21.57 million cases, showing a growth of 2.7%. Prestige & Above brands volume amounted to 8.34 million cases, marking a significant increase of 22.7%. Prestige & Above brands net sales totaled Rs 1,428.9 crore, reflecting a substantial growth of 34.5%. Prestige & Above brands contributed 44.4% to the IMFL volumes, compared to 36.5% previously. Prestige & Above brands contributed 67.0% to the Total IMFL sales value, compared to 57.7% previously. Revenue from Operations (Net) stood at Rs 3,039.8 crore, exhibiting a notable growth of 31.5%. Gross Profit amounted to Rs 1,310.0 crore, showing a significant increase of 34.5% with a margin of 43.1%. EBITDA stood at Rs 381.7 crore, showing a growth of 37.3% with a margin of 12.6%. Total comprehensive income amounted to Rs 197.6 crore, showing a growth of 19.0%. Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said: “Radico Khaitan has delivered another quarter of resilient performance with strong business fundamentals amidst a challenging operating environment. Our commitment to delivering value to our consumers, execution excellence, increasing investments in brands, and driving premiumization remains a cornerstone of our success. While the demand for the regular category brands was muted, premium brands growth remained robust. With positive macro indicators, continued government spending and a favorable consumer sentiment, we believe that the consumption should see an uptrend in the future. We are confident of the mid to long term potential of Indian Alcobev sector and Radico Khaitan remains well positioned to capitalize on this opportunity whilst steering the short-term challenges.” Commenting on the results and performance, Abhishek Khaitan, Managing Director said: “We started the calendar year 2024 on an exciting note with the launch of Spirit of Victory 1999 Pure Malt whisky. Priced at Rs 5000, this brand is targeted at the mid-priced luxury segment. Our Master Blender has travelled over the world to evaluate various single malts and has blended them meticulously together with our Indian single malt to craft this exquisite pure malt. We are confident that 1999 Pure Malt will go on to create a mark of its own as many of our previous luxury brands. During Q3FY24, our Prestige & Above category brands delivered a strong 20% growth and now account for about 50% of total IMFL volumes. It is heartening to note that due to our focus on financial discipline, we have been able to reduce our net debt by over Rs 100 crore on sequential basis. We remain committed to our integrated growth strategy of a focused premium product portfolio, brand innovation, an agile organization and delivering value to our consumers and stakeholders.” Result PDF
Breweries & Distilleries company Radico Khaitan announced Q2FY24 & H1FY24 results: Q2FY24 vs Q2FY23: Total IMFL volume of 6.96 Million Cases (-3.1%) Prestige & Above brands volume of 2.84 Million Cases (+21.8%) Prestige & Above brands net sales of Rs 489.7 crore (+35.6%) Prestige & Above brand's contribution to the IMFL volumes of 47.1% (vs. 37.9%) Prestige & Above brand's contribution to the Total IMFL sales value of 70.0% (vs. 59.2%) Revenue from Operations (Net) of Rs 925.0 crore (+21.5%) Gross Profit of Rs 408.3 crore (+29.1%) at 44.1% margin (+259 bps) EBITDA of Rs 120.6 crore at 13.0% margin (+127 bps) Total comprehensive income of Rs 61.4 crore (+19.3%) H1FY24 vs H1FY23: Total IMFL volume of 14.32 Million Cases (+2.3%) Prestige & Above brands volume of 5.23 Million Cases (+24.2%) Prestige & Above brands net sales of Rs 909.2 crore (+37.7%) Prestige & Above brand's contribution to the IMFL volumes of 41.6% (vs. 33.7%) Prestige & Above brand's contribution to the Total IMFL sales value of 64.7% (vs. 54.6%) Revenue from Operations (Net) of Rs 1,878.9 crore (+23.7%) Gross Profit of Rs 824.2 crore (+27.5%) at 43.9% margin (+132 bps) EBITDA of Rs 239.5 crore at 12.7% margin (+79 bps) Total comprehensive income of Rs 124.2 crore (+13.5%) Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said, “Radico Khaitan continued its robust performance in line with our expectations despite a challenging operating environment. This was led by broad-based growth across our premium portfolio. Industry volume growth, particularly in the regular category, remained muted during the quarter. We expect demand momentum to improve with the upcoming festive season. The recent commissioning of the greenfield grain distillery at Sitapur is a significant milestone development in the history of Radico Khaitan and augurs well for our future growth trajectory. We are committed to our long-term strategy of delivering sustainable premium volume growth. With our strong backward integrated platform and dedication to brand excellence, we are confident in our ability to capitalize on the long-term growth prospects within the Indian spirits industry.” Commenting on the results and performance, Abhishek Khaitan, Managing Director said, “During Q2 FY24, we delivered a strong growth of 22% in our Prestige & Above category brands. We are making remarkable progress in further expanding our brand portfolio and launched the next two whiskies in the Jugalbandi series of eight Indian Single Malt whiskies, i.e. Jugalbandi #3 and #4, at The Whisky Show in London. With our Rampur Indian Single Malt portfolio, we have always strived to take India to the World and the recent launch is a testament to our brand creation capabilities and celebrates an ancient Indian art form. Despite a volatile cost environment, our EBITDA margins have sustained on a sequential basis. We are confident that we are making progress in the right direction with our business strategies. We are focused on delivering value-led growth, managing business with agility, harnessing the strength of our extensive distribution network and manufacturing platform, while consistently improving our profit margins.” Result PDF
Conference Call with Radico Khaitan Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.