Allied Blenders And Distillers Limited · NSE:ABDL
Allied Blenders And Distillers — FY2024 Earnings Presentation
45 slides from Allied Blenders And Distillers's earnings presentation, Jul 22, 2024
Slide 1: Exchange filing cover letter
July 22, 2024 To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street Bandra Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code (BSE): 544203 Symbol: ABDL Sub: Investor Presentation - Company Overview and FY24
Slide 2: Company Overview & FY24 Performance Review
Company July 2024 Overview & FY24 Performance Review
Slide 3: Index
INDEX Company Overview 5 Business Overview 18 Strategic Overview 24 FY24 Results 27 Outlook 39
Slide 4: Snapshot
Snapshot 3rd largest spirits 17 33 79,000+ company in India by annual IMFL brands Manufacturing facilities retail outlets pan-India sales volumes 1 Distillery 32 bottling units pan-India 14 4 #3 #1 Countries of export; Millionaire brands Largest selling whisky brand Fastest growing spirits Leading e
Slide 5: Company Overview
——-+ Company Overview —-
Slide 6: Company Overview
Company Overview • 3rd largest spirits company in terms of annual sales volumes in India since FY2014 Revenue from Operations ( ₹ Cr.) • Experienced management team with significant industry & multi sector expertise 7,197 7,106 7,669 6,379 • First flagship brand, Officer’s Choice Whisky, launched in
Slide 7: Key Milestones
Key Milestones 2001 2012-14 2021-23 Entered premium and semi-premium whisky Officer’s Choice Whisky Forayed into Rum and segments with launch of Sterling Reserve franchise ranked 3rd among Brandy category with the largest selling whisky Blend 10 and Blend 7 launch of Officer’s brands globally in CY2
Slide 8: Core Pillars of Success
Core Pillars of Success Strong brand recognition with successful launches in prestige and above category Strategically located, large scale and advanced manufacturing facilities with a sophisticated research and development centre Access to extensive pan-India distribution network with ability to sc
Slide 9: Diversified Product Portfolio
Diversified Product Portfolio Whisky 8 Brandy Rum Gin Vodka
Slide 10: Premiumising Portfolio
Premiumising Portfolio Continuously Crafting Excellence Increasing P&A Contribution (Volume) • Strategic focus towards premiumization • Well established brands across all categories in the prestige and above (P&A) category • Only company to launch two millionaire brand in last 10 P&A, P&A, 25.0% 37.
Slide 11: Strategically Located
Strategically Located World Class Manufacturing Facilities 1 DISTILLERY 9 Owned 60.0 Mn liters Jammu and Kashmir Annual Distillation Capacity 5 Third Party Derabassi Purkhali Ambala Haridwar Sansarpur 32 Bottling Units Exclusive Hapur Muzaffarnagar Naharlagun 25.8 Mn, 64.9% 18 Jodhpur Guwahati Barid
Slide 12: Pan-India Distribution
Pan-India Distribution Network with Ability to Scale Multiple Route-to-market Capabilities Cover All Channels Including Open Market, Part Corporation Market And Full Corporation Market 30+ States and UTs EXPORTS • Leading exporter of IMFL 79,329 Retail Reach Ludhiana Chandigarh • Exports to 14 count
Slide 13: Board of Directors
Board of Directors Stewardship & Expertise Kishore Rajaram Chhabria Bina Kishore Chhabria Resham Chhabria Shekhar Ramamurthy Alok Gupta Jeetendra Hemdev Chairman & Non-Executive Non-Executive Director & Co- Whole-Time Director Whole-Time Director Managing Director Director Chairperson (Vice-Chairper
Slide 14: Senior Management Team
Senior Management Team Industry & Multi Sector Experience Alok Gupta Ramakrishnan Ramaswamy Ankur Sachdeva Managing Director Chief Financial Officer Chief Revenue Officer Joined ABD In 2023, work experience ~34 years Joined ABD In 2010, work experience 36 years Joined ABD In 2023, work experience 23
Slide 15: Corporate Governance, Quality, Health and CSR
Corporate Governance, Quality, Health and CSR Corporate Governance Quality Control • Policies/procedures to support transparency, strong business ethics • Strict regulations on product quality and safety and compliance framework • Products adhere to stringent internal and external quality • Strict c
Slide 16: Awards and Accolades
Awards and Accolades Spiritz Spiritz Spiritz Sterling Reserve Spiritz Achievers Achievers X&O Barrel Whisky, won Achievers Achievers Officer`s Choice Whisky, ICONiQ White Whisky Premium Cellar Brandy, Awards Awards the gold award for the Awards Awards won the gold award for won the gold award for wo
Slide 17: Awards and Accolades (cont.)
Awards and Accolades (cont.) Sterling Reserve Blend 7 e4m Indian Sterling Reserve Blend 7 The Spirits International Sterling Reserve awarded Runner-Up in Digital awarded Gold in the Officer’s Choice Blue The Spirits Business Wine & Spirits Premium Whiskies the Best New Marketing Marketing Best Integ
Slide 18: Business Overview
Business Overview ——-
Slide 19: Portfolio of Brands
Portfolio of Brands SEGMENT TO WHISKY BRANDY RUM VODKA GIN CATEGORY PREMIUM SEMI PREMIUM PRESTIGE MASS PREMIUM 18
Slide 20: Whisky
Whisky • In 1988, launched flagship brand Officer’s Choice Whisky • Strong portfolio of 8 blended whiskies • Officer’s Choice and Sterling Reserve amongst the top selling Gross Revenue from Operations (₹ Cr.) brands globally • Whisky segment contributes to ~97% of sales as on FY24 7,223 • Focus on p
Slide 21: Strong Brand Recognition
Strong Brand Recognition with Successful Launches in Prestige and Premium Category Developed A Well-recognized Product Portfolio, And Transformed From A Single Brand Company To Multi-product And Multi-brand Company WELL-RECOGNIZED BRANDS ACROSS ALL SEGMENTS Officer’s Choice Whisky _ _ _ _ _ _ _ _ _
Slide 22: Brandy
Brandy • ABD launched Kyron in 2012 within the premium brandy segment. It won the Monde Selection Gold Award in Gross Revenue from Operations (₹ Cr.) 2022. • Sterling Reserve Premium Cellar Brandy was launched in March 2023, it won the gold award for the product debut 157 of the year (brandy) at the
Slide 23: Rum and Vodka
Rum Vodka • ABD launched the Officer's Choice • ABD launched Class 21 Rum in 2001 catering to the mass Gross Revenue from vodka, in 2010 Gross Revenue from premium category Operations (₹ Cr.) Operations (₹ Cr.) • Class 21 vodka is a grain • Launched Jolly Roger Rum in 66 vodka 13 2010 catering to th
Slide 24: Strategic Overview
——- Strategic Overview ——-
Slide 25: Indian IMFL Industry
Indian IMFL Industry India Is 3rd Largest Alco-beverage Market In The World Indian Market Is Dominated By IMFL 960 1,018 1,078 1,451 1% 2% Growth Drivers Value 0% 11% 11.3% 5,000 Volume India’s significantly lower per 16% 0% Country Liquor capita (3.2L) consumption than 3,200 31% 33% 9.4% 2,700 glob
Slide 26: Growth Strategies
Growth Strategies Increase market share of Officer’s Choice whisky across regions Introduce new products in premium, semi-premium and prestige segments to strengthen presence in other categories Improve operating efficiencies Focus on environmental and social practices Enhance brand awareness and en
Slide 27: FY24 Performance
—- FY24 Performance
Slide 28: FY24 Performance Snapshot
FY24 Performance Snapshot Building a stronger foundation +5.6% 26.7% 124 Bps vs 12.6% FY23 YoY YoY YoY Financial Highlights ₹ 3,334 Cr ₹ 248 Cr 7.5% 16.4% Income from EBITDA EBITDA Margin ROCE Operations Improving realizations Improving P&A Salience: Foraying into Premium to Establish globally renow
Slide 29: Consolidated Income Statement
Consolidated Income Statement Particulars (₹ Cr.) FY23 FY24 Y-o-Y Total Income 7,117 7,675 7.8% Excise duty 3,959 4,341 9.6% Income from Operations 3,158 3,334 5.6% Cost of Goods Sold 1,974 2,098 6.3% Total Operating Expenses 988 988 (0.0)% EBITDA 196 248 26.7% EBITDA Margins (%) 6.2% 7.5% 124 bps D
Slide 30: Key Segmental Highlights
Key Segmental Highlights Improved state brand mix driving overall realisations in mass premium category… P&A Revenues (₹ Cr.) P&A Volume (Mn Cases) P&A Realisations (₹ /Case) 0.1% 1,468 1,469 1,253 1,244 11.8 11.7 FY23 FY24 FY23 FY24 Mass Premium Revenues (₹ Cr.) Mass Premium Volume (Mn. Cases) Mass
Slide 31: Operational Highlights
Operational Highlights Income from Operations grew by 5.6% to ₹ 3,334 Cr in FY24 driven by: • Improvement in realisation per case by 5.1% to ₹ 978 / case led by premiumisation and state brand mix optimisation • While volume de-grown by 1.7% to 31.7 mn cases in FY24: o H1FY24: Delivered strong growth
Slide 32: Officer's Choice
Officer’s Choice 3rd largest selling whisky brand globally in CY2023 • Flagship brand continues to maintain AWARDS market leadership in mass premium category • Highest gross margin brand in the existing portfolio • Major move towards sustainability by moving from glass to food grade PET and aseptic
Slide 33: Officer's Choice Blue
Officer’s Choice Blue Millionaire brand in the prestige category offering distinguished and appealing choice AWARDS • Continues to enjoy position as a regional power brand in the P&A segment • Towards the ABD portfolio distribution strength in off-premise segment. • Leverages on the strength of flag
Slide 34: Sterling Reserve Blend 7
Sterling Reserve Blend 7 Millionaire brand offering a unique blend of scotch malts and Indian Grain Spirits • Amongst the fastest brands to cross the AWARDS million case mark and reach 5 Mn cases • Ready to re-juvenate the market with its all-new avatar launching in the coming months • Consistently
Slide 35: ICONiQ White
ICONiQ White Achieving global recognition in ~15 months of launch • Touched 1 Mn cases in Sep’23 – 1 year after AWARDS it was progressively launched in different states • 2 Mn cases milestone in 1st full year of launch (FY24) • ICONiQ White Whisky - world's fastest growing spirits brand in CY2023 as
Slide 36: Kyron
Kyron Uniquely positioned in high growth, high margin premium brandy category AWARDS • Premium brandy from ABD, renewed focus to improve brand footprint by extending into more number of states • Deeper penetration in existing states to gain market share • Limited edition Kyron to be launched in Q3 S
Slide 37: Zoya
Zoya Foray into the Premium to Luxury Segment The ZOYA Way of Life • 1st non whisky brand launched in high growth, high margin category • Gross Margin % ~2x of the existing product portfolio • Already launched in 2 key states of Haryana and Maharashtra • To be rolled out in 8 states and exports duri
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Cr.) FY23 FY24 Particulars (₹ cr.) FY23 FY24 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 378 446 Share Capital 49 49 Capital Work in progress 14 16 Other Equity 357 358 Rights of Use Assets 130 122 Goodwill Total Equit
Slide 39: Consolidated Cash Flow
Consolidated Cash Flow Particulars (₹ Cr.) FY23 FY24 Cash and Cash Equivalents at Beginning 20 28 of the year Cash Flow From Operating Activities 230 186 Cash Flow from Investing Activities (18) (55) Cash Flow From Financing Activities (203) (132) Net Inc./(Dec.) in Cash and Cash 8 (1) Equivalent Ca
Slide 40: Outlook
Outlook Industry Outlook: • Expect mid single digit volume growth in the IMFL sector • Experience led consumption continues to drive P&A category leading to high demand led growth • With recent increase in MSP, the grain & ENA prices expected to remain at March-24 levels while glass prices on reduci
Slide 41: Annexures
Annexures 40
Slide 42: Financial Summary
Financial Summary Income from Operations (₹ Cr.) Gross Margin (₹ Cr.) 39.5% 39.4% 1,230 3,334 1,173 3,158 1,057 2,697 927 2,367 37.3% 37.0% FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Gross Margin Gross Margin % EBITDA (₹ Cr.) PAT (₹ Cr.) 248 2.5 213 208 0.1% 196 9.1% 1.8 1.5 1.6 7.7% 7.5% 6.2%
Slide 43: KPI Summary
KPI Summary Particulars (INR Cr.) FY23 FY24 Revenue From Operations 7,106 7,669 Total Income 7,117 7,675 EBITDA 196 248 EBITDA Margin (%) 6.2% 7.5% PAT 1.6 1.8 PAT Margin (%) 0.05% 0.06% ROE (%) 0.39% 0.45% ROCE (%) 12.6% 16.4% Licensed Capacity (Mn cases) of Own Bottling Units 26.3 25.8 Capacity Ut
Slide 44: Disclaimer
Disclaimer Allied Blenders and Distilleries Ltd. This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, e
Slide 45: Thank You
Thank You
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