Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — Q2 FY2025 Earnings Presentation
53 slides from Associated Alcohols & Breweries's earnings presentation, Oct 25, 2024
Slide 1: Exchange filing cover letter
Associated Alcohols & Breweries Limited 25th October, 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, Scrip Code: 507526 Mumbai –
Slide 2: Q2 & H1FY25 Investor Presentation
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q2 & H1FY25 INVESTOR PRESENTATION- OCTOBER 2024
Slide 3: 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 4: 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 5: 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 6: 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 Super Premium Brand Central Province Whisky Lemount Bombay Special Whisky Nicobar – Handcrafted Gin Titanium Vodka Superman Fine Hillfort Premium blended Malt Whisky Whisky 5
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 Premium MRP: Rs 1,400-2,600 Prestige MRP: Rs 680-1,000 Economy Price : Rs 500-560 6
Slide 8: Licenced 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 7
Slide 9: Contract Manufacturing – Long Term Relations
CONTRACT MANUFACTURING – LONG TERM RELATIONS Black & White Smirnoff VAT 69 Black Dog 8
Slide 10: 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 11: 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 12: Case Study – Kerala Achieves
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 13: 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 14: Growing Product Business: ENA and Ethanol
G ROW I N G P RO D U C T B U S I N E S S 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 decrea
Slide 15: 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 16: 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 15
Slide 17: Strong Investment Thesis
ASSOCIATED ALCOHOLS & BREWERIES LTD Q2 & H1FY25 INVESTOR PRESENTATION- OCTOBER 2024 STRONG INVESTMENT THESIS
Slide 18: 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 Q4FY25 Launched Premium Premium Blended Malt Brandy Whiskey “Hillfort” Q3FY24 Q3FY25 Launched Super Q1FY26 Premium Ready to Premium Crafted Tequila Drink Gin “Nicobar” Moving
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 5,064 895 822 624 767 530
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 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 21: 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 22: 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 23: 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 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 that
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 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 25: Strong Industry Tailwinds
ASSOCIATED ALCOHOLS & BREWERIES LTD. Q2 & H1FY25 INVESTOR PRESENTATION- OCTOBER 2024 STRONG INDUSTRY TAILWINDS
Slide 26: 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 o Accelerated urban development, Premiumization Trends o India is home to one of the largest young popu
Slide 27: 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 25.5 116 112 101 3.5 11.7 14.3 28.9 53 111.4 52 44 78.1 8.4 69.9 1.7 5.5 11.9 49.8 33.5 32.6 5 6.9 5.1 5.8 8.5 5.9 7.5 5.5 India Germ
Slide 28: 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 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: 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 30: 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 31: 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 32: 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 31
Slide 33: Q2 & H1FY25 Earnings
ASSOCIATED ALCOHOLS & BREWERIES LTD Q2 & H1FY25 INVESTOR PRESENTATION- OCTOBER 2024 Q2 & H1FY25-EARNINGS
Slide 34: Q2 & 6M FY25 – Performance Highlight
Q2 & 6M FY25 – PERFORMANCE HIGHLIGHT Business Update Q2 FY 25 Financial 6M FY 25 Financials Business Outlook In Q2 FY25 reported: In 6M FY25 reported: o The price of crucial inputs like grain o The IMFL Proprietary portfolio o The company reported a revenue of o The company reported a revenue and pa
Slide 35: Financial Highlights Q2FY25 and H1FY25
FINANCIAL HIGHLIGHTS Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 11% 8% Q2FY25 6% 250 135 2,546 194 10% 154 1,703 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % Profit after Tax (Rs Mn) & PAT Margin % 8% 12% H1F
Slide 36: 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 % 16% Q2FY25 41 48 394 413 743 307 688 271 15% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisatio
Slide 37: IMFL (Licensed)
IMFL (LICENSED) IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 14% Q2FY25 483 1,202 1,250 428 12% 356 387 66 51 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 IMFL Volume Cases (‘000) IMFL Revenue (Rs Mn) IMFL Realisation (Rs/Cases
Slide 38: IMIL
IMIL IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn) & EBITDA Margin % 12% Q2FY25 917 520 10% 567 61 502 44 876 440 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 IMIL Volume Cases (‘000) IMIL Revenue (Rs Mn) IMIL Realisation (Rs/Cases) EBITDA (Rs Mn
Slide 39: Merchant ENA
M E RCHANT E NA ENA Volume (Mn Litres) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITDA Margin % 9% Q2FY25 7% 7 461 41 5 334 63 67 24 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 ENA Volume (Mn Litres) ENA Revenue (Rs Mn) ENA Realisation (Rs/Ltr) EBITDA (Rs Mn) & EBITD
Slide 40: 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) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q Gross Revenues 2,583 1,711 51% 2,555 1% Excise duty 37 8 363% 37 - Net Revenue from Operations 2,546 1,703 50% 2,518 1% Total Operating Expenses 2,296 1,509 52% 2,237 3% EBITDA 250 194 29% 281 (11)%
Slide 41: H1FY25 Income Statement
H1F Y 25 INC OM E S TATE M E NT Particulars (Rs Million) H1FY25 H1FY24 Y-o-Y Gross Revenues 5,138 3,275 57% Excise duty 74 9 722% Net Revenue from Operations 5,064 3,267 55% Total Operating Expenses 4,534 2,888 57% EBITDA 530 379 40% EBITDA Margins (%) 10% 12% (200) bps Other Income 28 46 (39)% Depr
Slide 42: H1FY25 Balance Sheet
H1FY25- BALANCE SHEET Particulars (Rs Mn) H1FY25 FY24 Particulars (Rs Mn) H1FY25 FY24 ASSETS EQUITY & LIABILITIES Non-current Assets Equity Equity Share Capital 181 181 Property, Plant & Equipment 2,428 2,480 Other Equity 4,341 4,048 Capital Work in progress 854 633 Total Equity 4,522 4,229 Intangib
Slide 43: H1FY25 Cash Flow Statement
H 1 F Y 2 5 - C A S H F L OW S TAT 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, Profit Before Tax 448 347 CWIP and Intangible Assets (396) (448) Proceed fr
Slide 44: Annexure
ASSOCIATED ALCOHOLS & BREWERIES LTD Q2 & H1FY25 INVESTOR PRESENTATION- OCTOBER 2024 Annexure 43
Slide 45: 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 46: 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 47: Leadership Team
LEADERSHIP TEAM Mr. Ankit Agrawal Mr. Arun Sahni Group 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 Managem
Slide 48: 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 49: 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 50: 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 and Intangible Assets (1,041) (929
Slide 51: 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 21% 13% 12% 5,126 16% 4,358 10% 9% 6% 7% 895 580 608 822 767 416 506 624 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROCE & ROE Shareholders’ Equity (Rs Mn) Net
Slide 52: 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 53: Thank You
THANK YOU Company Contact Investor Relation Contact Ankit Agrawal Priya Sen Sheetal Khanduja Group Chief Financial Officer Go India Advisors Go India Advisors Associated Kedia Group Email: priya@goindiaadvisors.com Email: sheetal@goindiaadvisors.com Email: aagrawal@aabl.in Phone : +91 8334841047 Pho
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