Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Q1 FY2025 Earnings Presentation
51 slides from Associated Alcohols & Breweries's earnings presentation, Jul 29, 2024
Slide 1: Exchange filing cover letter
Associated Alcohols & Breweries Limited CIN: L15520MP1989PLC049380 29th July, 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, Scri
Slide 2: Associated Alcohols & Breweries Ltd. Q1 FY25 Investor Presentation
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q1 FY25 INVESTOR PRESENTATION- July 2024
Slide 3: Business Overview
BUSINESS OVERVIEW Q1 FY25 INVESTOR PRESENTATION- July 2024
Slide 4: AABL at a Glance
A A BL AT G LA NCE • 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
Slide 5: Fully Integrated Business Model
F U L LY I N T E G R AT E D B U S I N E S S M O D E L 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 (P
Slide 6: Present Across Liquor Value Chain
P R E S E N T AC RO S S L I Q U O R VA L U E C H A I N 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 Propr
Slide 7: AABL IMFL – Gaining Traction
A A B L I M F L – GA I N I N G T R AC T I O N Economy Popular Premium Central Province Whisky Lemount Bombay Special Nicobar – Handcrafted Gin Whisky Titanium Vodka Superman Fine Hillfort Premium blended Malt Whisky Whisky 6
Slide 8: 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 Premium MRP: Rs 1,400-2,600 Popular MRP : Rs 680-1,000 Economy MRP :Rs 500-560 7
Slide 9: Licensed Brands - Preferred Partners
L I C E N C E D B R A N D S - P R E F E R R E D PA RT N E R S Blue Riband Gin Bagpiper White Mischief Director’s Special McDowell’s 8
Slide 10: Contract Manufacturing – Long Term Relations
CONTRACT MANUFACTURING – LONG TERM RELATIONS Black & White Smirnoff VAT 69 Black Dog 9
Slide 11: Industry Leading Financial Position
I N D U S T RY L E A D I N G F I N A N C I A L P O S I 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 20.7 0.16 12.6 0.04 Associated Alcohols & Breweries Ltd. Peer Grou
Slide 12: Distinctive Competitive Edge
DISTINCTIVE COMPETITIVE EDGE Integrated Business Transitioning towards 4 Decades of Expertise 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 13: Case Study – Kerala AAB Cheers
C A S E S T U DY – K E R A L A C H E E R S Fastest to achieve a million cases sale <4 years Market Entry and Emerged as a Major Focus on Premium Innovative Product Player (FY22-23) Segment and Revenue Launch (2018) Remarkable Enhancement Strategic Vision for Revenue Growth and Future Growth Sales Mi
Slide 14: Growing Product Business
G ROW I N G P RO D U C T B U S I N E S S 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 License
Slide 15: 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 16: Levers for a Strong Growth Outlook
L E V E R S FO R A S T RO N G G ROW T H O U T LO O K Revenue Guidance B2C Business o Strengthening the relationship with Diageo and Inbrew • IMFL (Proprietary) : 15%-18% YoY Growth • IMFL (Licensed) : 12%-15% YoY Growth o Implementing hedging strategies to • Premium Line of Products : 18%-20% YoY Gr
Slide 17: Strong Investment Thesis
STRONG INVESTMENT THESIS
Slide 18: 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 17
Slide 19: Diversified Product Portfolio
D I V E R S I F I E D P RO D U C T P O RT FO L I O Our upcoming IMFL Products in the Premium and Super Premium Segment Q1FY25 Q3FY25 Launched Premium Premium Blended Malt Brandy Whiskey “Hillfort” Q3FY24 Q2FY25 Launched Super Q4FY25 Premium Ready to Premium Crafted Tequila Drink Gin “Nicobar” Moving
Slide 20: 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 2,518 895 822 624 767 281
Slide 21: Becoming a Pan India Player
B E C O M I N G A PA N I N D I A P L AY E R 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 Infrastruct
Slide 22: Expansion Enabled Through Internal Accruals
E X PA N S I O N E N A B L E D T H RO U G H I N T E R N A L AC C RUA L S 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 F
Slide 23: Strong Balance Sheet with Minimal Debt
S T RO N G B A L A N C E W I T H M I N I M A L D E B T Gross Block (Rs Mn) ROCE & ROE 3,425 31% 26% 23% 19% 1,822 1,868 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 FY
Slide 24: Comfortable Debt Level: Financial Strength
C OM FORTA B LE DE B T LE VE L: F INA NC IA L S TRE NGTH 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 guar
Slide 25: Fungibility of Raw Materials and Finished Products
F U N G I B I L I T Y O F R AW M A T E R I A L S A N D F I N I S H E D P R O D U C T S 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 Sing
Slide 26: Strong Industry Tailwinds
STRONG INDUSTRY TAILWINDS
Slide 27: Growth Catalysts
G ROW T H C ATA LY S T S Driving Alco-bev Industry Expansion Young Population Influence o More than 88% of individuals in India Urbanisation aged below 25 either buy or consume alcoholic beverages Premiumization Trends o India is home to one of the largest o Accelerated urban development, young popu
Slide 28: Low Per Capita Alcohol Consumption India
LOW P E R C A P I TA A LC O H O L C O N S U M P T I O N I N D I A Per Capita Alcohol Consumption (in Ltr): India vs World; India remains relatively at lower level 142 26 116 112 101 4 12 14 29 53 111 52 44 78 8 70 2 6 12 50 34 33 5 7 5 6 9 6 8 6 India Germany France USA UK China Rest of World Spirit
Slide 29: Young Population Growth and Rising Disposable Income
YOUNG POPULATION GROW TH AND RISING DISPOSABLE INCOME Growing Proportion of Young Population Growing Disposable Income (In Trillion USD) 4.2 10% 10% 10% 10% 11% 11% 11% 11% 12% 12% 3.9 3.4 3.5 3.2 3.2 2.9 2.9 2.7 2.7 63% 63% 64% 64% 64% 65% 65% 65% 65% 65% 27% 27% 26% 26% 25% 25% 25% 24% 24% 24% 201
Slide 30: Urbanization & Shift Towards Premiumisation
U R B A N I Z AT I O N & S H I F T T OWA 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) 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 1
Slide 31: Rapid Growth in Premium Alcohol Segment
R A P I D G ROW T H I N P R E M I U M A LC O H O L S E G M E N T 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% 10% 2% 2% 3% 4% 9% 10% 10% 10% 7% 10% 11% 11% 12% 16% 21% 21% 23% 24% 42% 50% 50% 51% 54% 50
Slide 32: Indian Alco-Bev Industry Poised for Growth
I NDI AN ALCO -B E V I N DU S T RY P O I SE D FO R G ROW T H Alco-Bev Volume in India (Mn Cases) and CAGR Indian Alco- Beverage market Rs. Lac Cr 960 1,018 1,068 1,491 CAGR : 1.2 % CAGR: 1.6% CAGR:6.9 % 560 355 385 325 5 445 330 340 350 3.2 3 2 480 300 320 330 2015 2020 2023 2028P 2015 2020 2023 202
Slide 33: Product Wise Breakup
P RO D U C T W I S E B R E A K U P Product Wise Volume CAGR (2023-2028) Product Wise Volume Split (2023-2028) 14.7% 5% 20% 7.8% 560 Mn Cases 6.1% 5.9% 12% 63% Whisky Brandy Rum Wine Spirits Whisky Brandy Rum Wine Spirits AABL Segments Sources : Technopak Report January 2024 32
Slide 34: Q1 FY25 Earnings Highlights
Q1 FY25 EARNINGS HIGHLIGHTS
Slide 35: Q1FY25 – Performance Highlight
Q1FY25 – PERFORMANCE HIGHLIGHT Business Update Financial Update Q1FY25 Financials Business Outlook o The company achieved its highest- In Q1 FY25 reported: o The price of crucial inputs like grain ever quarterly revenue of INR o The IMFL Proprietary portfolio o The company reported a revenue and pac
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % Q1FY25 Year on Year 12% 8% 177 2,518 281 123 7% 1,564 185 11% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin
Slide 37: IMFL (Proprietary)
I M F L ( P RO P R I E TA RY ) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % Q1FY25 Year on Year 16% 407 433 294 47 276 678 679 41 15% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IM
Slide 38: IMFL (Licensed)
IMFL (LICENSED) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 15% Q1FY25 Year on Year 12% 441 483 1,198 1,250 72 368 387 53 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisat
Slide 39: IMIL
IMIL IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 13% Q1FY25 Year on Year 10% 1,102 623 81 481 502 565 48 959 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases
Slide 40: Merchant ENA
M E RCHANT E NA ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % Q1FY25 Year on Year 10% 8% 4,979 3,891 31 306 61 64 256 20 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (
Slide 41: Quarterly Income Statement
Q UA R T E R LY I N C O M E S TAT E M E N T Particulars (Rs Million) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q Gross Revenues 2,555 1,564 63% 2,443 5% Excise duty 37 1 - 21 76% Net Revenue from Operations 2,518 1,564 61% 2,422 4% Total Operating Expenses 2,237 1,379 62% 2,238 0% EBITDA 281 185 52% 185 52% EB
Slide 42: Annexure
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Slide 43: Our Milestones
OUR MILESTONES 1989 1990-1995 1996-2015 2016-2017 2018-2020 2022 2023 2024 o Increased ENA o Entered o Increased o Increased the o Achieved 1 o Launched o The Company o Started the franchise capacity of plant capacity bottling line Million cases of “Nicobar” was commercial to 30 MLPA arrangement the
Slide 44: 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 45: 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 46: Historical Income Statement
HIS TORIC A L INC OM E S TATE M E NT 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 89 142 Deprecia
Slide 47: 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 48: Historical Cash Flow Statement
H I S TO R I C A L C A S H F LOW S TAT 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 -1,041 -929 -397 and Intangible As
Slide 49: Financial Overview
F I N A N C I A L OV E RV I E W Net Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % PAT (Rs Mn) & PAT Margin % 7,598 7,008 16% 12% 5,126 10% 9% 6% 7% 608 822 767 416 506 624 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 ROCE & ROE Shareholders’ Equity (Rs Mn) Net Debt to Equity Ratio (X) 26% 4,229 1
Slide 50: 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 51: 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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