Fratelli Vineyards Limited · BSE:FRATELLI
Fratelli Vineyards — Q1 FY25 Earnings Presentation
33 slides from Fratelli Vineyards's earnings presentation, Aug 13, 2024
Slide 1: Investor and Earnings Presentation cover letter
Date: August 16, 2024 To, To, The Listing Compliance Department The Secretary BSE Limited Calcutta Stock Exchange Limited P. J. Tower, Dalal Street 7, Lyons Range, Kolkata 700001 Mumbai – 400001 Scrip Code: 541741 Subject : INVESTOR AND EARNINGS PRESENTATION Dear Sir/ Madam, Pursuant to Regulation 3
Slide 2: Q1 FY25 Results Presentation
VINEYARDS LIMITED Q1 FY25, Results Presentation August 13, 2024
Slide 3: Disclaimer
Disclaimer This presentation includes forward-looking statements regarding the business, financial performance, strategy, and outcomes of Fratelli Vineyards, as well as the industry it operates in. These statements are subject to risks, uncertainties, and assumptions, which may cause actual results
Slide 4: Contents
CONTENTS Introduction to India’s finest winemaker Growth strategy- ready to scale Quarterly review, Q1 FY25 Journey of growth 5
Slide 5: Introducing India's Finest Winemaker
INTRODUCING INDIA’S FINEST WINEMAKER Actual image of the site 6
Slide 6: Introducing India's Finest Wine Company
INTRODUCING INDIA'S FINEST WINE COMPANY Ownership of Best wines get Where premium Building a wine Family driven, ‘grapes-to-bottle’ made at family run is consumption but professionally value chain vineyards standard lifestyle managed 7
Slide 7: Raising a Glass to the Journey So Far
RAISING A GLASS TO THE JOURNEY SO FAR – BUILT BRICK BY BRICK OVER THE LAST 16 YEARS… Added 100 acres under active farming in Jambhali, Maharashtra • Sette – India’s • Launch of TiLT - Wine in a #1 luxury wine was can • Launch of J’NOON in launched Launch of M/S range collaboration with Jean • Noi sp
Slide 8: Attributes of a Best-in-Class Wine-Making Business
ATTRIBUTES OF A BEST-IN-CLASS WINE-MAKING BUSINESS Facets of industry Harvesting Moats created by Fratelli Wines Vineyard development associated with significant 15 years of innovation in viticulture and oenology. capital and time investment; select brands matured Adapting best imported varietals to
Slide 9: Our Complete Portfolio
by ih Wh The OUR COMPLETE PORTFOLIO
Slide 10: Luxury Range
LUXURY RANGE Distinctive brands for special occasions J'NOON is a luxury wine launched in collaboration with Jean Charles Boisset; Only Indian winery to attract international partnerships J’NOON J’NOON Red White Sette is the flagship of Fratelli which is a result of barrel-aged wine nurtured with me
Slide 11: Super Premium
SUPER PREMIUM Master Selection is inspired by the Hariyal, the state Gran Cuvée Brut bird of Maharashtra Approachable blends curated by international experts which showcase the finesse of Fratelli's winemaking capability. Approachable complexity makes it well suited for enthusiasts and experts Gran
Slide 12: Premium
PREMIUM Unique Single varietals made from the finest clones of grapes from France and Italy Cabernet Franc Shiraz Sangiovese Pinot Noir Merlot Cabernet Sauvignon Wide range of 11 offerings across red, white Shiraz and rosé wines The label is inspired from the seven brothers of Fratelli Renovated in
Slide 13: Premium
PREMIUM noi is an easy and approachable sparkling wine which is fruity, vibrant and bubbly noi noi Rosé Especially created to suit the Indian Palette Classic range of wines is the entry range of wines into the world of Fratelli Easy and well suited for everyday consumption Classic Shiraz Classic Mer
Slide 14: Value
VALUE Pocket friendly wines creating category Ziva range Mosso Peach Wine difference in various markets Ziva offers a full range of red, white and rosé Strong penetration in interior & T2 markets Mosso – peach wine, launched to cater to specific geographies Kyra Reserve Sidus Port 15
Slide 15: Cans
CANS Market leader in the wine in a can segment India's only Vegan & Gluten Free wine TiLT White TiLT Red Specially targeted to early drinkers, enabling the expansion of wine category TAM Embodies the spirit of fun and spontaneity – Noi Spritzer Classico made for anyone, anywhere, anytime Awarded on
Slide 16: Strong Presence in HoReCa
STRONG PRESENCE IN HORECA Market share in key HoReCa markets* Prestigious listings across HoReCa 57% 50% 43% 36% 29% Rajasthan Karnataka West Bengal Odisha Delhi HoReCa market share YoY* 38% 37% 34% 32% FY21 FY22 FY23 FY24 *Based on market share in markets where excise data is available 17
Slide 17: Growth in Modern Retail & Hospitality to Accelerate Penetration
GROWTH IN MODERN RETAIL & HOSPITALITY TO Penetration in Tier 2 & 3 towns set to increase dramatically ACCELERATE PENETRATION Increase in modern retail outlets will lead to more points of sale* Small-town India now a big draw for major hospitality players Wine is a natural addition to F&B India’s ret
Slide 18: Building Vineyard Tourism
BUILDING VINEYARD TOURISM STAY VINEYARD TOUR WINE TASTING WEDDINGS WINE SHOP F&B OFFERINGS 01 Building brand salience 02 Direct-to-consumer sales 03 Margin multiplier 04 Business mix diversification Experience centre & Extending presence to last Elimination of distribution/ Builds new revenue stream
Slide 19: Growth Strategy - Ready to Scale
GROWTH STRATEGY- READY TO SCALE Actual image of the site 01 02 03 04 05 Expanding vineyard Augmenting winery Investing in technology & Developing luxury Introducing new brands acreage and cultivation capacity to ramp up automation across value- vineyard tourism at Akluj of wines in premium & above o
Slide 20: Setting Global Standards - 200+ Lifetime Awards
SETTING GLOBAL STANDARDS - 200+ LIFETIME AWARDS Harvesting awards in both Indian and top tier global platforms First Indian winery to win gold and double gold awards First Indian winery to win gold for liquid and packaging in canned wine competition Master Selection Late harvest scores 92 points in
Slide 21: Quarterly Review, Q1 FY25
QUARTERLY REVIEW, Q1 FY25 22
Slide 22: History of Performance
HISTORY OF PERFORMANCE Segment wise contribution to sales (by revenue) FY21 FY22 FY23 FY24 6% 7% 5% 3% 24% 24% 23% 25% 70% 70% 70% 73% Premium Value Cans Delivering consistently superior growth with high contribution to revenues from premium & above • Consistency in contribution from premium & above
Slide 23: Highlights of Performance, FY24 & Q1 FY25
HIGHLIGHTS OF PERFORMANCE, Performance in Rs. Lakhs* FY 24 & Q1 FY25 19,672 21,557 16,678 14,378 14,752 Quarterly performance reflects 10,471 seasonality, overall growth trend 2,723 2,865 maintained 888 838 930 57 FY22 FY23 FY24 FY 2022 Revenue Gross Profit EBITDA PAT • Gross margin momentum was mai
Slide 24: Quarterly Financial Table
In Rs. Lakhs Q1 FY25 Q4 FY24 Q1 FY24 QUARTERLY Net revenue from 4,409.30 3,294.39 4,642.18 operations FINANCIAL TABLE COGS 725.43 847.15 896.84 Fratelli Wines EBIDTA 435.74 (0.68) 541.45 -standalone results EBIDTA margin 9.9% - 11.7% Depreciation 179.95 171.21 150.41 Finance cost 271.30 274.03 217.8
Slide 25: Listing Timeline
LISTING TIMELINE Shareholders approve As the Holdco, Tinna Fratelli Vineyards' amalgamation of Trade commences business covers vineyards and winery. Fratelli Wines with process to wind down Wind-down of trading Tinna Trade at EGM on trading in agri and non- operations nearly April 1, 2024 agri produ
Slide 26: Journey of Growth
JOURNEY OF GROWTH 27
Slide 27: Fostering Natural Moats in Business
FOSTERING NATURAL MOATS IN BUSINESS Commanding 30% market share in a market where entry barrier of time is a very strong moat 01 400 acres 02 ~1,000 acres 03 12 varietals under active supported by long imported from farming in Akluj term contract farmers France Imported 12 grape These varietals were
Slide 28: Getting Future Ready
GETTING FUTURE READY Fratelli’s facilities in Maharashtra & Karnataka Within 100 km radius Key enabler in producing quality wines Increasing installed capacity by a third to ~5.6 Mn liters by H2 HY25 Akluj, Maharashtra 4.7 Mn liters Hampi, Karnataka 0.5 Mn liters Canning facilities at Akluj, Maharas
Slide 29: Translating Principles into Action
TRANSLATING PRINCIPLES INTO ACTION Before After Local employment Resources conservation Mitigating logistics Responsible marketing Deep farmer connect at the Invested in water security 95% of packaging material Building world class brands heart of end-to-end presence and holistic waste domestically
Slide 30: Record of Sustained Performance
RECORD OF SUSTAINED PERFORMANCE FW (FY21 to FY24) PARTICULARS GROWTH DRIVERS CAGR Volume growth backed by higher capacity and Net Revenue 24% better product mix Gross Profit 26% Higher share of premium & above in sales Operating leverage at work. Increasing A&P EBITDA 100% spends to temper margins P
Slide 31: Geared for Progress
GEARED FOR PROGRESS 01 underlining consistent Robust operating model 02 sustain growth Exercising levers to 03 of the next tier of Laying the foundation financial performance momentum performance Family driven and Expanding business through Grow vineyard tourism professionally managed, enhanced capa
Slide 32: Focus of Strategy
FOCUS OF STRATEGY 1 2 3 4 Premiumization Expanding the total Building further Developing first of through brand addressable market capability in its kind, luxury building and wine culture in research to improve vineyard tourism & India viticulture hospitality business 5 6 7 Accent on strong Growing
Slide 33: Q1 FY25 Results Presentation
Q1 FY25, Results Presentation August 13, 2024