Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Q3 FY2024 Earnings Presentation
50 slides from Associated Alcohols & Breweries's earnings presentation, Jan 27, 2024
Slide 1: Cover letter to stock exchanges
Associated Alcohols & Breweries Limited CIN: L15520MP1989PLC049380 27th January, 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, S
Slide 2: Q3 & 9M FY24 Investor Presentation
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q3 & 9M FY24 INVESTOR PRESENTATION- JAN 2024 1
Slide 3: AABL at a Glance
AABL at a Glance • Largest integrated manufacturing facility situated at a singular location. 16% 18% 29% 10 Years 10 Years 10 Years Revenue CAGR EBITDA CAGR PAT CAGR • Present throughout the entire liquor value chain. o IMFL Proprietary o IMFL Licensed o IMIL o Merchant ENA 9% 8% 6% EBITDA Margin P
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 c.9%-11% ENA Ethanol Proprietary Manufacturing
Slide 6: AABL IMFL – Gaining Traction
AABL IMFL– Gaining Traction Popular Brand Prestige Brand 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) 1,982 2,401 1,069 1,719 1,588 677 1,405 625 640 1,082 897 980 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 IMFL Proprietary Volume Cases (‘000) IMFL Licensed Volume Cases (‘000
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 o Strengthening the relationship with Diageo and B2C Business Inbrew • IMFL (Proprietary) : 15%-18% YoY Growth • IMFL (Licensed) : 12%-15% YoY Growth o Implementing hedging strategies to mitigate the impact of fluctuations in raw material • Premium
Slide 14: Compelling Investment Thesis
Compelling Investment Thesis Diversified Product Portfolio Progressing towards Premiumization 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 Q3 INVESTOR PRESENTATION- JAN 2024 STRONG INVESTMENT THESIS
Slide 16: 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 Launching Super Premium Ready to Tequila Premium Crafted Gin Drink “Nicobar” Moving Towards Premiumization 15
Slide 17: Increasing Focus on IMFL Business
2 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 (%) 5,226 4,358 5,126 7,008 3,266 766 895 822 624 37
Slide 18: 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: Expansion Enabled Primarily through Internal Accruals
4A. Expansion Enabled Primarily through Internal Accruals CFO (Rs Mn) & Cash Conversion Ratio (x) Capex (Rs Mn) 929 900 Single Malt 0.97 x 800 Plant 700 0.76 x 0.74 x 397 Bottling Plant 0.40 x 340 0.11 x 175 248 125 584 667 792 68 ENA Plant FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY24E FY2
Slide 20: Strong Balance Sheet with Minimal Debt
4B. Strong Balance with Minimal Debt Gross Block (Rs Mn) ROCE & ROE 1,822 1,868 1,664 1,513 31% 31% 25% 26% 23% 19% 12% 11% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE ROE Net Debt / Equity & Interest Coverage Ratio Net Working Capital (Days) 64 77 54 48 111 103 64 92 74 72 66 60 FY20 FY21 FY22 FY2
Slide 21: 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 0.05 Associated Alcohols & Breweries Ltd. Peer Group Associated Alcohols and Bre
Slide 23: 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 Q3 INVESTOR PRESENTATION- JAN 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 Premiumization
Urbanization & Shift Towards Premiumization 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: Q3 & 9M FY24 Earnings
ASSOCIATED ALCOHOLS & BREWERIES LTD Q3 INVESTOR PRESENTATION- JAN 2024 Q3 & 9M FY24 Earnings 31
Slide 33: Q3 & 9M FY24 Performance Highlights
Q3 & 9FY24 Performance Highlights New Product Launches o 2 New Products Launched in IMFL segment • Prestige Segment – “Central Province” Rum • Super Premium Segment – “Nicobar” handcrafted Gin Ethanol Plant Update o Commenced Commercialization of 130 KLPD Grain Based Ethanol plant o Plant expected t
Slide 34: Financial Highlights
Financial Highlights Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 7% 11% 9% 6% Q3FY24 126 108 1,851 1,909 204 166 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 11% 7% 9% 9
Slide 35: IMFL (Proprietary)
IMFL (Proprietary) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 13% Q3FY24 11% 384 382 265 280 690 733 36.4 29.1 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Ca
Slide 36: IMFL (Licensed)
IMFL (Licensed) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 11% 9% Q3FY24 644 684 1,201 1,200 536 570 75.2 58.0 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Ca
Slide 37: IMIL
IMIL IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 9% 7% Q3FY24 1,563 608 503 500 1,005 389 42.6 45.3 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA
Slide 38: Merchant ENA
Merchant ENA ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % 7% Q3FY24 5,345 6% 4,586 359 61 67 279 25.1 16.7 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 ENA Volume (Litres) (‘000) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITD
Slide 39: Quarterly Income Statement
Quarterly Income Statement Particulars (Rs Million) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q Gross Revenues 1,927 1,859 4% 1,711 13% Excise duty 18 8 119% 8 122% Net Revenue from Operations 1,909 1,851 3% 1,703 12% Total Operating Expenses 1,706 1,685 1% 1,509 13% EBITDA 204 166 22% 194 5% EBITDA Margins (%
Slide 40: 9MFY24 Income Statement
9MFY24 Income Statement Particulars (Rs Million) 9MFY24 9MFY23 Y-o-Y Gross Revenues 5,202 5,169 1% Excise duty 27 10 177% Net Revenue from Operations 5,176 5,160 0% Total Operating Expenses 4,593 4,683 -2% EBITDA 583 477 22% EBITDA Margins (%) 11% 9% 200 bps Other Income 63 70 -9% Depreciation 101 1
Slide 41: Annexure
ASSOCIATED ALCOHOLS & BREWERIES LTD Q3 INVESTOR PRESENTATION- JAN 2024 Annexure 40
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 9MFY24 Gross Revenues 4,532 5,142 7,028 5,202 Excise duty 174 16 20 27 Net Revenue from Operations 4,358 5,126 7,008 5,176 Total Operating Expenses 3,463 4,304 6,384 4,593 EBITDA 895 822 624 583 EBITDA Margins (%) 21% 16% 9% 11% Oth
Slide 46: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs Mn) FY22 FY23 Particulars (Rs Mn) FY22 FY23 ASSETS EQUITY & LIABILITIES Non-current Assets Equity Property, Plant & Equipment 1,116 1,055 Equity Share Capital 181 181 Capital Work in progress 236 1,105 Other Equity 2,948 3,453 Intangible Assets 1 0 Total Equi
Slide 47: Historical Cash Flow Statement
Historical Cash Flow Statement Particulars (Rs Mn) FY22 FY23 Particulars (Rs Mn) FY22 FY23 CASH FLOW FROM OPERATING ACTIVITIES Cash Flow from Investing Activities Profit Before Tax 812 555 Purchase of Property Plant & Equipment, CWIP and Intangible Assets -397 -929 Adjustments for: Proceed from the
Slide 48: Financial Overview
Financial Overview Net Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % PAT (Rs Mn) & PAT Margin % 7,008 21% 13% 5,126 5,176 12% 4,358 16% 9% 11% 6% 7% 895 580 608 822 416 384 624 583 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 ROCE & ROE Shareholders’ Equity (Rs Mn) Net Debt t
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
Associated Alcohols & Breweries — Q3 FY2024 Earnings Presentation on 6ix