Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Q4 FY2024 Earnings Presentation
50 slides from Associated Alcohols & Breweries's earnings presentation, May 3, 2024
Slide 1: Associated Alcohols & Breweries Limited
Associated Alcohols & Breweries Limited CIN: L15520MP1989PLC049380 03rd May, 2024 To, To, The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited PJ Tower, Dalal Street, Exchange Plaza, C-1, G Block Mumbai – 400 001 Bandra Kurla Complex, Scrip
Slide 2: Q4 & FY24 Investor Presentation - May 2024
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q4 & FY24 INVESTOR PRESENTATION- MAY 2024 1
Slide 3: AABL at a Glance
AABL at a Glance • Largest integrated manufacturing facility situated at a singular location. 14% 15% 24% 10 Years 10 Years 10 Years Revenue CAGR EBITDA CAGR PAT CAGR • Present throughout the entire liquor value (FY15-FY24) (FY15-FY24) (FY15-FY24) chain. o IMFL Proprietary o IMFL Licensed o IMIL o M
Slide 4: Fully Integrated Business Model
Fully Integrated Business Model Varied Feedstock processing Capabilities Single Location, Fungible Manufacturing Plant IMFL (Proprietary) Products Offerings Supply to Major Bottlers/ ENA Plant Manufacturers of Rice - Licensed Capacity: IMFL 180 MLPA -Installed Capacity: IMFL (Proprietary) 45 MLPA By
Slide 5: Present Across Liquor Value Chain
Present Across Liquor Value Chain IMFL (Proprietary) c.15%-18% o Adaptability and Flexibility in using o On Ground Intelligence for Raw varied grains as Feedstock Material Sourcing IMFL (Licensed) Sustainable EBITDA Margin c.12%-15% Total EBITDA Margin ENA c.9%-11% Ethanol Proprietary Manufacturing
Slide 6: AABL IMFL– Gaining Traction
AABL IMFL– Gaining Traction Popular Brands Prestige Brands Super Premium Bombay Special Whiskey Superman Fine Whiskey Central Province Whiskey James Mcgill Nicobar Jamaican Magic Rum Titanium Vodka Lemount 5
Slide 7: Licenced Brands – Preferred Partners
Licenced Brands – Preferred Partners Blue Riband Gin Bagpiper White Mischief Director’s Special McDowell’s 6
Slide 8: Contract Manufacturing – Long Term Relations
Contract Manufacturing – Long Term Relations Black & White Smirnoff VAT 69 Black Dog 7
Slide 9: Distinctive Competitive Edge
Distinctive Competitive Edge 4 Decades of Expertise Integrated Business Transitioning towards Strategic Location Strategic Partnership Model Premiumisation o Largest single-location o 2 Decades of Partnership o Presence across the o Entered the Super o Core focus on liquor facility in the heart of w
Slide 10: Case Study: Kerala Cheers
Case Study: Kerala Cheers Market Entry and Emerged as a Major Focus on Premium Innovative Product Player (FY22-23) Segment and Revenue Launch (2018) Enhancement o Successfully entered the Kerala market in • Ambitious goal to increase 2018. o Achieved an outstanding • Forward-looking revenue from pre
Slide 11: Growing Product Business
Growing Product Business IMFL Proprietary Revenue (Rs Mn) IMFL Licensed Revenue (Rs Mn) IMIL Revenue (Rs Mn) 2,182 2,401 1,069 1,099 1,982 1,915 1,588 1,405 625 640 1,082 980 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 IMFL Proprietary Volume Cases (‘000) IMFL Licensed Volume Cases (
Slide 12: Consistent Commodity Segment
Consistent Commodity Segment o AABL plays a crucial role as a primary provider of high quality Extra Neutral Alcohol (ENA) to other prominent IMFL manufacturers and bottlers o As the quantity of ENA is directed towards the production of value-added goods , there is a corresponding decrease in the ov
Slide 13: Levers for a Strong Growth Outlook
Levers for a Strong Growth Outlook Revenue Guidance B2C Business o Strengthening the relationship with Diageo and Inbrew • IMFL (Proprietary) : 15%-18% YoY Growth • IMFL (Licensed) : 12%-15% YoY Growth • Premium Line of Products : 18%-20% YoY Growth o Implementing hedging strategies to mitigate the
Slide 14: Compelling Investment Thesis
Compelling Investment Thesis Diversified Product Portfolio Progressing towards Premiumisation Becoming a Pan India Player Expansion driven by internal accruals , supported by a strong balance sheet with minimal debt Fungibility of Raw Materials and Finished Product 13
Slide 15: Strong Investment Thesis
ASSOCIATED ALCOHOLS & BREWERIES LTD Q4 & FY24 INVESTOR PRESENTATION- MAY 2024 STRONG INVESTMENT THESIS
Slide 16: 1. Diversified Product Portfolio
1. Diversified Product Portfolio Our upcoming IMFL Products in the Premium and Super Premium Segment Q1FY25 Q3FY25 Premium Blended Malt Premium Brandy Whiskey Q3FY24 Q2FY25 Q4FY25 Launched Super Premium Ready to Tequila Premium Crafted Gin Drink “Nicobar” Moving Towards Premiumization 15
Slide 17: 2A. Increasing Focus on IMFL Business
2A. Increasing Focus on IMFL Business The primary emphasis is on premium IMFL products, with an anticipated increase in working capital offset by improved margins. Total Revenue (Rs Mn) & Revenue Contribution (%) EBITDA (Rs Mn) & EBITDA Contribution (%) 4,358 5,126 7,008 7,598 895 822 624 767 36.8%
Slide 18: 3. Becoming a Pan India Player
3. Becoming a Pan India Player In the next 1-2 Years Associated Alcohols is set to spread across key regions of India Current Presence • Dominant Footprint: Significant presence in Madhya Pradesh. With 20-25% Targeted Geographies Market share in IMIL and IMFL Products • Vast Infrastructure: 150-acre
Slide 19: 4A. Expansion Enabled Primarily through Internal Accruals
4A. Expansion Enabled Primarily through Internal Accruals CFO (Rs Mn) & Cash Conversion Ratio (x) Capex (Rs Mn) 1,040 Single Malt 0.97 x 929 Plant 900 0.76 x 0.74 x 800 Bottling Plant 0.40 x 397 305 0.11 x 175 584 667 125 792 68 ENA Plant FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY25E FY26E
Slide 20: 4B. Strong Balance with Minimal Debt
4B. Strong Balance with Minimal Debt Gross Block (Rs Mn) ROCE & ROE 3,425 31% 26% 23% 1,822 1,868 19% 1,664 14% 12% 11% 12% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROCE ROE Net Debt / Equity & Interest Coverage Ratio Net Working Capital (Days) 20 41 42 31 -0.07 0.04 103 64 67 60 FY21 FY22 FY23 FY24
Slide 21: 4C. Comfortable Debt Level : Financial Strength
4C. Comfortable Debt Level : Financial Strength Debt Repayment Schedule (Rs Mn) for Debt Funding of Ethanol Plant 200 200 200 96 50 FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 • Ethanol Plant expansion was funded by Loan taken out under Interest Subvention Scheme • AABL’s strong cash flows guarantee tha
Slide 22: Industry Leading Financial Position
Industry Leading Financial Position Robust Financial Position: Low Gearing and Adequate Interest Coverage Ratio Setting Industry Standards Net Debt/Equity Ratio as on FY23 Interest Coverage Ratio as on FY23 50 0.2 24.68 0.07 Associated Alcohols & Breweries Ltd. Peer Group Associated Alcohols and Bre
Slide 23: 5. Fungibility of Raw Materials and Finished Products
5. Fungibility of Raw Materials and Finished Products Diverse Grain Usage as Feedstock State of the art Manufacturing Facility & Flexible Energy Source Flexible Product Offerings Coal Husk Briquettes IMFL (Proprietary) Rice 01 01 IMFL (Licensed) Maize 02 IMIL 02 Single Manufacturing Facility ENA for
Slide 24: Strong Industry Tailwinds
ASSOCIATED ALCOHOLS & BREWERIES LTD Q4 & FY24 INVESTOR PRESENTATION- MAY 2024 STRONG INDUSTRY TAILWINDS
Slide 25: Growth Catalysts: Driving Alco-bev Industry Expansion
Growth Catalysts: Driving Alco-bev Industry Expansion Young Population Influence • More than 88% of individuals in India aged below 25 either buy or consume alcoholic beverages • India is home to one of the largest young populations globally, with 67.45% falling within the age range of 15 to 64. Urb
Slide 26: Per capita alcohol consumption in India remains at a low level
Per capita alcohol consumption in India remains at a low level Per Capita Alcohol Consumption (in Ltr) 140.7 25.2 116.5 111.7 101 3.5 11.7 14.2 28.9 52.8 110.5 51.8 42.2 78.4 8.5 69.9 1.6 5.4 11.8 49.6 32.7 32.5 4.8 6.9 5 5.7 8.4 5.9 7.1 5.4 India Germany France USA UK China Rest of World Spirit Bee
Slide 27: Urbanization & Shift Towards Premiumisation
Urbanization & Shift Towards Premiumisation Growing Proportion of Urban Population Growing Premium Liquor Market in India (USD Bn) 28 30 31 32 33 36 53% 40% 35% 28% 21 19 20 26% 18 17 17 17% 1.5 1.3 1.4 0.4 1.2 1.2 5.5 5.7 6 6.3 5 5.2 1.7 1.8 2 2.1 2.2 1.6 4 4 4 4 4 4 1950 1990 2000 2022 2030 E 2050
Slide 28: Young Population Growth and Rising Disposable Income
Young Population Growth and Rising Disposable Income Growing Proportion of Young Population Growing Disposable Income (In Trillion USD) 4.2 9.7% 9.9% 10.2% 10.4% 10.5% 10.8% 11.1% 11.4% 11.8% 12.1% 3.9 3.4 3.5 3.2 3.2 2.9 2.9 2.7 2.7 63.2% 63.5% 63.7% 64.0% 64.2% 64.5% 64.7% 64.9% 65.1% 65.3% 27.1%
Slide 29: Billion Dollars Opportunities – Driving Alcohol Sector
Billion Dollars Opportunities – Driving Alcohol Sector Size of IMFL Market in India (Billion USD) Indian Alcobev Sector to Grow (‘000) (Rs Cr) 32 366 13 163 2015 2025 2015 2025 o India's alcohol market surging with urbanization, lifestyle shifts, and a burgeoning middle class. o Cultural ties link a
Slide 30: Upswing in Liquor Sales Volume
Upswing in Liquor Sales Volume Indian Liquor Market Outlook: Sales Volume (in Mn Ltrs) IMFL Market Outlook in India : Sales Volume (in Mn Ltrs) 8,174 7,974 4,586 7,727 4,267 4,439 3,884 4,081 7,451 3,679 7,151 6,830 2022 2023 2024 2025 2026 2027 2022 2023 2024 2025 2026 2027 o India stands as the wo
Slide 31: Product Wise Break Up – Whiskey the Most Popular
Product Wise Break Up – Whiskey the Most Popular Product Wise Volume CAGR % 2022-2027 Product Wise Market Share 2027E 1.70% 0.50% 1.40% 7.60% 0.10% 6.90% 2.10% 14.50% 5.90% 5.60% 5.20% 4.80% 4.30% 3.80% 18.90% 60.90% AABL Segments Sources : IMARC 30
Slide 32: Q4 & FY24 Earnings
ASSOCIATED ALCOHOLS & BREWERIES LTD Q4 & FY24 INVESTOR PRESENTATION- MAY 2024 Q4 & FY24 Earnings
Slide 33: Q4FY24 Performance Highlights
Q4FY24 Performance Highlights Business Update o Receipt order of IMIL for FY 24 from MP government, the quantity is in line with FY 23 o Commenced Commercialization of 130 KLPD Grain Based Ethanol plant in Jan 24 o During the Quarter the Revenue from the Ethanol Segment Amounted to Rs. 431 Million D
Slide 34: Financial Highlights
Financial Highlights Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 5% 5% 8% 8% Q4FY24 123 2,422 98 1,848 185 147 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 9% 7% 10% 6%
Slide 35: IMFL (Proprietary)
IMFL (Proprietary) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 11% Q4FY24 10% 408 384 276 276 719 676 30 27 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases)
Slide 36: IMFL (Licensed)
IMFL (Licensed) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 9% Q4FY24 8% 629 1,202 1,199 475 524 571 54 53 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY23 Q4FY23 Q4FY24 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases)
Slide 37: IMIL
IMIL IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 6% Q4FY24 1,536 598 5% 491 493 995 389 33 31 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn
Slide 38: Merchant ENA
Merchant ENA ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % 7% Q4FY24 4% 6,300 422 5,227 330 67 63 23 17 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (R
Slide 39: Quarterly Income Statement
Quarterly Income Statement Particulars (Rs Million) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q Gross Revenues 2,443 1,858 31% 1,927 27% Excise duty 21 10 97% 18 15% Net Revenue from Operations 2,422 1,848 31% 1,909 27% Total Operating Expenses 2,238 1,701 32% 1,706 31% EBITDA 185 147 25% 204 -9% EBITDA Margin
Slide 40: FY24 Income Statement
FY24 Income Statement Particulars (Rs Million) FY24 FY23 Y-o-Y Gross Revenues 7,645 7,028 9% Excise duty 47 20 136% Net Revenue from Operations 7,598 7,008 8% Total Operating Expenses 6,831 6,384 7% EBITDA 767 624 23% EBITDA Margins (%) 10% 9% 100 bps Other Income 96 89 8% Depreciation 144 144 0% In
Slide 41: Annexure
ASSOCIATED ALCOHOLS & BREWERIES LTD Q4 & FY24 INVESTOR PRESENTATION- MAY 2024 Annexure
Slide 42: Our Milestones
Our Milestones •Launched Franchise Partnership at • Sold 1 million cases, 114% The Company was Redesigned 600,000 cases per annum Entered the dynamic Kerala revenue growth. established as a public manufacturing plants •Established presence in Delhi and Market • Secured fifth-largest position limited
Slide 43: Board of Directors
Board of Directors Mr. Prasann Kumar Kedia Debashis Das Managing Director Independent Director With over three decades of industry expertise and a A graduate engineer with 42 years of extensive experience, postgraduate qualification, he excels in Business out of which 21 years at the USL (Diageo). H
Slide 44: Leadership Team
Leadership Team Mr. Ankit Agrawal Mr. Arun Sahni Chief Financial Officer Unit Head A Chartered Accountant and Company Secretary with over Mr. Arun Sahni, A seasoned operations leader with over 39 14 years of diverse experience in finance, audit, taxation, years of experience in Project Management, O
Slide 45: Historical Income Statement
Historical Income Statement Particulars (Rs Million) FY21 FY22 FY23 FY24 Gross Revenues 4,532 5,142 7,028 7,645 Excise duty 174 16 20 47 Net Revenue from Operations 4,358 5,126 7,008 7,598 Total Operating Expenses 3,463 4,304 6,384 6,831 EBITDA 895 822 624 767 EBITDA Margins (%) 21% 16% 9% 10% Other
Slide 46: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs Mn) FY24 FY23 FY22 Particulars (Rs Mn) FY24 FY23 FY22 ASSETS EQUITY & LIABILITIES Non-current Assets Equity Property, Plant & Equipment 2,480 1,055 1,116 Equity Share Capital 181 181 181 Capital Work in progress 633 1,105 236 Other Equity 4,048 3,453 2,948 In
Slide 47: Historical Cash Flow Statement
Historical Cash Flow Statement Particulars (Rs Mn) FY24 FY23 FY22 Particulars (Rs Mn) FY24 FY23 FY22 CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES Profit Before Tax 683 555 812 Purchase of Property Plant & Equipment, CWIP Adjustments for: and Intangible Assets -1,041 -929 -
Slide 48: Financial Overview
Financial Overview Net Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % PAT (Rs Mn) & PAT Margin % 7,598 7,008 21% 13% 12% 5,126 16% 4,358 9% 11% 6% 7% 895 580 608 822 800 416 500 624 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROCE & ROE Shareholders’ Equity (Rs Mn) Net Debt to Equi
Slide 49: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 50: Thank You
THANK YOU Company Contact Investor Relation Contact Ankit Agrawal Priya Sen Sheetal Khanduja Chief Financial Officer – Associated Go India Advisors Go India Advisors Alcohols and Breweries Ltd Email: priya@goindiaadvisors.com Email: sheetal@goindiaadvisors.com Email: aagrawal@aabl.in Phone : +91 833
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