Sula Vineyards Ltd. · NSE:SULA
Sula Vineyards — H1 FY24 Earnings Presentation
19 slides from Sula Vineyards's earnings presentation, Nov 9, 2023
Slide 1: Exchange submission letter for investor presentation
Date: 9th November 2023 To, To, National Stock Exchange of India Limited (“NSE”), BSE Limited (“BSE”), Corporate Relationship Department, The Listing Department 2nd Floor, New Trading Ring, “Exchange Plaza”, 5th Floor P.J. Towers, Dalal Street, Plot No. C/1, G Block, Bandra-Kurla Complex Mumbai – 40
Slide 2: Investor Presentation Q2 & H1 FY24
Investor Presentation Q2 & H1 FY24 1
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by Sula Vineyards Limited (the “Company”) solely information purpose only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or sub
Slide 4: Contents
Contents 1 Q2 & H1FY24 Highlights 2 Business Overview 3
Slide 5: Highlights Q2 & H1FY24
Performance Highlights Q2 & H1FY24 4
Slide 6: Management Comments
Management Comments “We are pleased to report another quarter of double-digit growth leading to an all- time high Q2 Revenue and EBITDA. “Our premiumization efforts have succeeded in taking our Elite and Premium wine share to an unprecedented 73.5% in Q2, up from 71.6% a year ago, resulting in our E
Slide 7: Key Highlights – Q2 FY24
Key Highlights – Q2 FY24 Revenue from operations: Rs. 142.8 Cr 11.6% YoY EBITDA: Rs. 45.1 Cr 18.1% YoY Financials EBITDA margin: 31.6% 174bps YoY PAT: Rs. 23.1 Cr 18.4 % YoY EPS: Rs. 2.74 14.2% YoY Own Brands Revenue: Rs. 126.8 Cr 12.0 % YoY Own Brands Elite & Premium now at 73.5% of Own Brands 15.0
Slide 8: Key Highlights – H1 FY24
Key Highlights – H1 FY24 Revenue from operations: Rs. 259.4 Cr 15.6% YoY EBITDA: Rs. 77.0 Cr 19.8% YoY Financials EBITDA margin: 29.7% 102bps YoY PAT: Rs. 36.8 Cr 20.5% YoY EPS: Rs. 4.36 15.8% YoY Own Brands Revenue: Rs. 228.5 Cr 19.3% YoY Own Brands Elite & Premium now at 73.6% of Own Brands 24.5%
Slide 9: Own Brands Growth
Own Brands Growth Q2 FY24 H1 FY24 Value Volume Value Volume +12.0% +3.1% +19.3% +8.3% Elite & Premium Elite & Premium Elite & Premium Elite & Premium +15.0% +13.3% +24.5% +20.2% Revenue Breakup Revenue Breakup 26.5% 26.4% 73.5% 73.6% Elite & Premium Elite & Premium Economy & Popular Economy & Popula
Slide 10: Strong Financial Performance
Strong Financial Performance (INR Cr) Revenue Split Gross Profit and % margin 4.0% 2.7% 5.8% 2.8% 7.5% 8.5% 8.8% 9.1% 73.1% 73.3% 73.0% 71.9% 88.5% 88.8% 85.4% 88.1% 92.1 104.5 163.8 190.1 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Own brands Wine tourism Others (INR Cr) (INR Cr
Slide 11: Wine Tourism – H1 FY24
Wine Tourism – H1 FY24 Vineyard resorts with 100+ Keys! in Nashik 180,000+ 96,000+ Footfall of visitors Tastings up 17% YoY up 40% YoY 150,000+ INR 9,800+ Bottles sold via D2C Avg. room revenue channel up 13% YoY down -4% YoY Added three stylish villas and 16 rooms overlooking the picturesque Gangap
Slide 12: Profit & Loss Statement – Q2 & H1FY24
Profit & Loss Statement – Q2 & H1FY24 (INR Cr) Particulars Q2FY24 Q2FY23 Y-o-Y H1FY24 H1FY23 Y-o-Y - Own Brands 126.8 113.3 12.0% 228.5 191.6 19.3% - Wine Tourism 12.1 9.6 26.9% 23.6 19.8 19.3% - Others 3.9 5.2 -24.9% 7.3 13.0 -43.8% Revenue from Operations 142.8 128.0 11.6% 259.4 224.3 15.6% Less:
Slide 13: The Source Story
The Source Story The Source range has truly stood out, succeeding in bringing higher-end wine drinkers back to drinking world class Indian wines. Our Source Pinot Noir is the latest release in this iconic range, the most successful premium Indian wine brand launched in the past decade New Launch 12
Slide 14: Business Overview
Business Overview 13
Slide 15: Executive Summary
Executive Summary Market leader with close 31.6% EBITDA margin India’s best-selling red, to 60%+ market share in for Q2FY24 vs. 29.8% white, rosé & sparkling premium wines1 for Q2FY23 wines Sourcing from 2,800+ acres Winery capacity of 16.7 Sula’s Shiraz Cabernet - of vineyards, significantly Mn lit
Slide 16: Our Brand Profile
Our Brand Profile Elite Premium Economy Popular INR 1000 - 2100 INR 700 - 950 INR 400 - 700 <INR 400 21 labels 14 labels 10 labels 6 labels Labels Brands Note: All pricing are as per the state of Maharashtra 15
Slide 17: Sustainability is Key Focus Area
Sustainability is Key Focus Area ~3MW installed solar PV capacity, providing 50%+ of annual energy needs in FY23 Generated around 4 million kWH from solar energy at Sula’s owned and leased facilities in Maharashtra and Karnataka in FY23 Rainwater harvesting reservoirs at all facilities with storage
Slide 18: Key Business Strategies for Future
Key Business Strategies for Future Continuous focus on Own Brands Continue to focus on wine tourism to Focus on premiumization of product bring in new consumers portfolio Strategies Pursue strategic investments and Effectively use digital media to acquisitions in the Indian wine industry increase aw
Slide 19: Thank You
Thank You Ernst & Young LLP Runjhun Jain | Runjhun.jain1@in.ey.com Rhea P Dharia | Rhea.Dharia@in.ey.com 18