Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Q3 FY2025 Earnings Presentation
54 slides from Associated Alcohols & Breweries's earnings presentation, Jan 24, 2025
Slide 1: Regulation 30 cover letter to exchanges
Associated Alcohols & Breweries Limited 24th January 2025 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 Code: 507526 Mumbai – 4
Slide 2: Q3 & 9M FY25 Investor Presentation
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q 3 & 9 M F Y 2 5 I N V E S T O R P R E S E N TA T I O N JA N UA RY 2 0 2 5 1
Slide 3: AABL at a Glance
A A B L AT G L A N C E Largest integrated manufacturing facility situated at a singular location 14% 15% 24% Present throughout the entire liquor value 10 Years Revenue 10 Years EBITDA 10 Years PAT chain CAGR CAGR CAGR o IMFL Proprietary (FY15-FY24) (FY15-FY24) (FY15-FY24) o IMFL Licensed o IMIL o M
Slide 4: Fully Integrated Business Model
F U L LY I N T E G R A T E D B U S I N E S S M O D E L Varied Feedstock processing Capabilities IMFL (Proprietary) Raw materials are directly sourced from mandis or manufacturers Products Offerings Rice Maize Jawar Other* * Possibilities to use other starch-based Feedstocks Single Location, Fungible
Slide 5: Present Across Liquor Value Chain
P R E S E N T A C R O S S L I Q U O R VA L U E C H A I N Adaptability and Flexibility in using On Ground Intelligence for Raw varied grains as Feedstock Material Sourcing ENA Manufacturing Ethanol Proprietary Brands Contract - For Captive Manufacturing By Products - IMFL IMFL Licensed Manufacturing
Slide 6: AABL IMFL – Gaining Traction
AABL IMFL – GAINING TRACTION PRESTIGE & ABOVE POPULAR Super Premium Brand C e n t ra l Nicobar – ECONOMY P rov i n c e W h i s ky H a n d c ra f ted Gin T i t a n i u m Vo d k a B o m b ay S u p er m a n S p e c i a l W h i s ky F i n e W h i s ky Status: Roadmap in Place Activities include: — Deplo
Slide 7: AABL's Brand Portfolio
A A B L’ S B R A N D P O R T F O L I O Whisky Vodka Gin Brandy Rum Prestige& Above MRP: Rs 1,400-2,600 Popular MRP: Rs 680-1,000 Economy MRP: Rs 500-560 6
Slide 8: Licensed Brands - Preferred Partners
L I C E N S E D B R A N D S - P R E F E R R E D PA R T N E R S Blue Riband Gin Director’s Special McDowell’s Bagpiper White Mischief 7
Slide 9: Contract Manufacturing – Long Term Relations
C O N T R A C T M A N U FA C T U R I N G – L O N G T E R M R E L AT I O N S BLACK & WHITE SMIRNOFF VAT 6 9 BLACK DOG 8
Slide 10: Industry Leading Financial Position
I ND U ST RY L EAD I NG F I NANCI AL PO SI T I O N Robust Financial Position: Low Gearing and Adequate Interest Coverage Ratio Setting Industry Standards Net Debt/Equity Ratio as on FY24 Interest Coverage Ratio as on FY24 0.16 20.7 12.6 0.04 Associated Alcohols & Peer Group Associated Alcohols and P
Slide 11: Distinctive Competitive Edge
DISTINCTIVE COMPETITIVE EDGE 4 Decades of Strategic Strategic Integrated Transitioning Expertise Location Partnership Business Model towards Premiumisation ✓ Core focus on ✓ Largest single- ✓ 2 Decades of ✓ Presence across liquor location facility in Partnership with the entire Liquor ✓ Entered the
Slide 12: Case Study – Kerala Cheers
CASE STUDY – KERALA CHEERS Fastest to achieve a million cases sale <4 years Market Entry and Remarkable Revenue Emerged as a Major Strategic Vision for Focus on Premium Innovative Product Growth and Sales Player (FY22-23) Future Growth Segment and Revenue Launch (2018) Milestone (FY22-23) Enhancemen
Slide 13: Growing Product Business
GROWING PRODUCT BUSINESS IMFL Proprietary Revenue (Rs Mn) IMFL Licensed Revenue (Rs Mn) IMIL Revenue (Rs Mn) 2,182 1,099 1,982 2,401 1,069 1,915 1,588 1,405 625 640 1,082 980 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 IMFL Licensed Volume Cases (‘000) IMIL Volume Cases (‘000) IMFL P
Slide 14: Growing Product Business
GROWING PRODUCT BUSINESS ❑ AABL plays a crucial role as a primary provider of high quality Extra Neutral Alcohol (ENA) to other prominent IMFL manufacturers and bottlers ❑ As the quantity of ENA is directed towards the production of value-added goods , there is a corresponding decrease in the overal
Slide 15: Levers for a Strong Growth Outlook
LEVERS FOR A STRONG GROWTH OUTLOOK B2C B2B Business Business IMFL (Proprietary): 15%-18% YoY Growth B2B segment expected to progress steadily REVENUE in congruence with inflation rate IMFL (Licensed): 12%-15% YoY Growth GUIDANCE Ethanol segment, a recent addition, is Premium Line of Products : 18%-2
Slide 16: Compelling Investment Thesis
COMPELLING INVESTMENT THESIS 1 Diversified Product Portfolio 2 Progressing towards Premiumisation 3 Becoming a Pan India Player 4 Expansion driven by internal accruals , supported by a strong balance sheet with minimal debt 5 Fungibility of Raw Materials and Finished Product 15
Slide 17: Strong Investment Thesis
Strong Investment Thesis Strong Industry Tailwinds Q3 & 9MFY25 - Earnings Annexure 16
Slide 18: Diversified Product Portfolio
DIVERSIFIED PRODUCT PORTFOLIO Q1FY25 Q1FY26 Launched Premium Premium Brandy Blended Malt Whiskey “Hillfort” Q3FY24 Q4FY25 Q2FY26 Launched Super Premium Ready Tequila Premium Crafted to Drink Gin “Nicobar” Moving Towards Premiumisation 17
Slide 19: Increasing Focus on IMFL Business
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 8,334 895 822 624 767 926 3
Slide 20: Becoming a Pan India Player
B E C O M I N G A PA N I N D I A P L A Y E R In the next 1-2 Years Associated Alcohols is set to spread across key regions of India Dominant Footprint: Significant presence in Vast Infrastructure: 150-acre Madhya Pradesh. With 20-25% Market land bank provides ample space share in IMIL and IMFL Produ
Slide 21: Expansion Enabled Through Internal Accruals
E X PA N S I O N E N A B L E D T H R O U G H I N T E R NA L ACC RUA L S CFO (Rs Mn) & Cash Conversion Ratio (x) 0.97 x 0.76 x 0.74 x Single Malt Working Capital for the company as on FY24 : Plant Rs 998 Mn and FY23: Rs 1,451 Mn 0.40 x 0.11 x CFO declined in FY23 as the Company utilised 584 667 792 3
Slide 22: Strong Balance Sheet with Minimal Debt
STRONG BALANCE WITH MINIMAL DEBT Gross Block (Rs Mn) ROCE & ROE 3,425 ROCE ROE 31% 26% 23% 19% 1,822 1,868 1,664 14% 12% 11% 12% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Net Debt / Equity & Interest Coverage Ratio Net Working Capital (Days) 20 41 42 31 -0.07 0.04 67 103 64 60 46 43 45 FY21 FY22 FY23
Slide 23: Comfortable Debt Level: Financial Strength
C O M F O R TA B L E D E B T L E V E L : FINANCIAL STRENGTH Debt Repayment Schedule (Rs Mn) for Debt Funding of Ethanol Plant 200 200 200 96 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 th
Slide 24: Fungibility of Raw Materials and Finished Products
F U N G I B I L I T Y O F R AW M AT E R I A L S A N D FINISHED PRODUCTS State of the art Manufacturing Diverse Grain Usage as Feedstock Facility & Flexible Energy Source Flexible Product Offerings Coal Husk Briquettes IMFL (Proprietary) Rice 1 1 IMFL (Licensed) Maize 2 2 IMIL Single Manufacturing EN
Slide 25: Strong Industry Tailwinds
Strong Investment Thesis Strong Industry Tailwinds Q3 & 9MFY25 - Earnings Annexure 24
Slide 26: Growth Catalysts
G R O W T H C A TA LY S T S Driving Alco-bev Industry Expansion Premiumisation Trends Urbanisation o India's alcohol market among fastest-growing o Accelerated urban Young Population Influence globally. development, improved o More than 88% of individuals in accessibility, and o Rising urban populat
Slide 27: Low Per Capita Alcohol Consumption India
L O W P E R C A P I TA A L C O H O L CONSUMPTION INDIA Per Capita Alcohol Consumption (in Ltr): India vs World; India remains relatively at lower level 142 25.5 116 112 3.5 101 11.7 14.3 28.9 53 111.4 52 44 78.1 8.4 69.9 1.7 5.5 49.8 11.9 33.5 32.6 5 6.9 5.1 5.8 8.5 5.9 7.5 5.5 India Germany France
Slide 28: Young Population Growth and Rising Disposable Income
Y O U N G P O P U L AT I O N G R O W T H A N D RISING DISPOSABLE INCOME Growing Proportion of Young Population Growing Disposable Income (In Trillion USD) 4.2 3.9 9.7% 9.9% 10.2% 10.4% 10.5% 10.8% 11.1% 11.4% 11.8% 12.1% 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%
Slide 29: Urbanization and Shift Towards Premiumisation
U R B A N I Z AT I O N A N D S H I F T T O WA R D S P R E M I U M I S AT I O N Growing Proportion of Urban Population Growing Premium Liquor Market in India (USD Bn) 36 32 33 31 53% 30 28 40% 21 35% 19 20 18 17 28% 17 26% 1.5 17% 1.3 1.4 0.4 1.2 1.2 5.7 6 6.3 5 5.2 5.5 1.8 2 2.1 2.2 1.6 1.7 4 4 4 4
Slide 30: Rapid Growth in Premium Alcohol Segment
RAPID GROWTH IN PREMIUM ALCOHOL SEGMENT Whiskey Sales Breakdown by Segment (Mn Cases) Whiskey Sales Breakdown by Segment (Rs. Lac Cr ) 190 205 183 243 355 0.71 1.22 1.12 1.51 2.45 3% 9% 10% 10% 10% 10% 2% 2% 3% 4% 7% 10% 11% 11% 12% 16% 21% 21% 23% 24% 42% 50% 50% 51% 54% 50% 53% 53% 53% 55% 49% 37%
Slide 31: Indian Alco-Bev Industry Poised for Growth
I ND I AN ALCO - BEV I ND U ST RY PO I SED FOR GROWTH Alco-Bev Volume in India (Mn Cases) and CAGR Indian Alco- Beverage market (Rs. Lac Cr) 960 1,018 1,068 1,491 560 CAGR : 1.2 % CAGR: 1.6% CAGR:6.9 % 355 385 325 445 5 330 340 350 3.2 3 2 480 300 320 330 2015 2020 2023 2028P 2015 2020 2023 2028P Be
Slide 32: Product Wise Break Up
PRODUCT WISE BREAK UP Product Wise Volume CAGR (2023-2028) Product Wise Volume Split (2023-2028) 14.7% 5% 20% Whisky 7.8% 560 Mn Brandy Cases Rum 6.1% 5.9% 12% Wine Spirits 63% Whisky Brandy Rum Wine Spirits AABL Segments 31 Sources : Technopak Report January 2024
Slide 33: Q3 & 9MFY25 - Earnings
Strong Investment Thesis Strong Industry Tailwinds Q3 & 9MFY25 - Earnings Annexure
Slide 34: Q3 & 9M FY25 – Performance Highlights
Q3 & 9M FY25 – P E R F O R M A N C E H I G H L I G H T Business Update Q3 FY 25 Financial 9M FY 25 Financials Business Outlook ❑ IMFL Proprietary Volumes In Q3 FY25 reported: In 9M FY25 reported: ❑ Grain prices are stabilizing, grew 23% YoY, driven by the supporting margins. ❑ Net Revenues from stro
Slide 35: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 12% 8% 11% Q3FY25 395 7% 3,270 261 204 1,909 126 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT 11% Margin % 11% 7%
Slide 36: IMFL (Proprietary)
I M F L ( P R O P R I E TA R Y ) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 17% Q3FY25 13% 63 469 785 36 382 733 368 280 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisat
Slide 37: IMFL (Licensed)
IMFL (LICENSED) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 15% 11% Q3FY25 770 116 684 1,200 1,250 570 616 75 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Case
Slide 38: IMIL
IMIL IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 14% 9% Q3FY25 617 86 1,086 568 1,005 503 500 45 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs
Slide 39: Merchant ENA
MERCHANT ENA ENA Volume (Mn Litres) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % 10% Q3FY25 7% 6 359 392 39 67 65 25 5 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 ENA Volume (Mn Litres) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA
Slide 40: Ethanol
ETHANOL Ethanol Volume (Mn Litres) Ethanol Revenue (Rs Mn) 28 2,025 Q3FY25 (Q-o-Q) & 9MFY25 10 10 688 719 Q2FY25 Q3FY25 9MFY25 Q2FY25 Q3FY25 9MFY25 Ethanol Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % 9% 7% 5% 142 72 72 72 65 34 Q2FY25 Q3FY25 9MFY25 Q2FY25 Q3FY25 9MFY25 39 Note : Ethanol Pl
Slide 41: Quarterly Income Statement
Q U A R T E R LY I N C O M E S TA T E M E N T Particulars (Rs Million) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q Gross Revenues 3,343 1,927 73% 2,583 29% Excise duty 72 18 300% 37 95% Net Revenue from Operations 3,270 1,909 71% 2,546 28% Total Operating Expenses 2,875 1,706 69% 2,296 25% EBITDA 395 204 94% 2
Slide 42: 9MFY25 Income Statement
9 M F Y 2 5 - I N C O M E S TA T E M E N T Particulars (Rs Million) 9MFY25 9MFY24 Y-o-Y Gross Revenues 8,481 5,202 63% Excise duty 147 27 444% Net Revenue from Operations 8,334 5,176 61% Total Operating Expenses 7,408 4,593 61% EBITDA 926 583 59% EBITDA Margins (%) 11% 11% - Other Income 39 63 (38)%
Slide 43: H1FY25 Balance Sheet
H1FY25-BALANCE SHEET Particulars (Rs Mn) H1FY25 FY24 Particulars (Rs Mn) H1FY25 FY24 ASSETS EQUITY & LIABILITIES Non-current Assets Equity Property, Plant & Equipment 2,428 2,480 Equity Share Capital 181 181 Capital Work in progress 854 633 Other Equity 4,341 4,048 Intangible Assets 2 2 Total Equity
Slide 44: H1FY25 Cash Flow Statement
H 1 F Y 2 5 - C A S H F L O W S TA T E M E N T Particulars (Rs Mn) H1FY25 H1FY24 Particulars (Rs Mn) H1FY25 H1FY24 CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM OPERATING ACTIVITIES Purchase of Property Plant & Equipment, CWIP and Intangible Profit Before Tax 448 347 Assets (396) (448) Adjustme
Slide 45: Annexure
Strong Investment Thesis Strong Industry Tailwinds Q2 & H1FY25 - Earnings Annexure
Slide 46: Our Milestones
OUR MILESTONES -Launched “Nicobar” -Set up 40 MLPA ethanol plants with - Increased ENA plant - Increased the - Achieved 1 co-generation - Increased capacity to 30 MLPA - Entered franchise bottling line Million cases of -IMFL sales : 43% of capacity of the - Started bottling with arrangement with cap
Slide 47: Board of Directors
BOARD OF DIRECTORS Mr. Prasann Kumar Kedia Mr. Anshuman Kedia Mr. Tushar Bhandari Debashis Das Managing Director Whole Time Director & CEO Whole Time Director & Independent Director With over three decades of industry A Regent's University London Chief Financial Officer A graduate engineer with 42 e
Slide 48: Leadership Team
LEADERSHIP TEAM Mr. Ankit Agrawal Mr. Arun Sahni Mr. S.R. Dubey Mr. Abhinav Mathur Group Chief Financial Officer Unit Head Group Sales Head Company Secretary A Chartered Accountant and Company Secretary Mr. Arun Sahni, A seasoned With over 30 years of experience at A qualified Company Secretary with
Slide 49: Historical Income Statement
H I S T O R I C A L I N C O M E S TA T E M E N T Particulars (Rs Million) FY24 FY23 FY22 Gross Revenues 7,645 7,028 5,142 Excise duty 47 20 16 Net Revenue from Operations 7,598 7,008 5,126 Total Operating Expenses 6,831 6,384 4,304 EBITDA 767 624 822 EBITDA Margins (%) 10% 9% 16% Other Income 96 89
Slide 50: 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 51: Historical Cash Flow Statement
H I S T O R I C A L C A S H F L O W S TA T E M E N T 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 and (1,041) (929) (397) Intang
Slide 52: Financial Overview
F I NANCI AL OV ERV I EW 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 10% 9% 6% 7% 895 822 580 608 506 624 767 416 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROCE & ROE Shareholders’ Equity (Rs Mn) Net Debt t
Slide 53: 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 54: Thank You!
T H A N K YO U ! INVESTOR RELATION CONTACT ➢ Priya Sen Go India Advisors Email: priya@goindiaadvisors.com COMPANY CONTACT Phone : +91 8334841047 Ankit Agrawal Group Chief Financial Officer ➢ Sheetal Khanduja Associated Kedia Group Go India Advisors Email: cfo@aabl.in Email: sheetal@goindiaadvisors.c
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