RADICO KHAITAN LIMITED RKL/SX/2024-25/18
May 14, 2024
BSE Ltd. | National Stock Exchange of India Ltd. |
Phiroze Jeejeebhoy Towers | Exchange Plaza, 5th Floor, Plot no. C/1 |
Dalal Street | G Block, Bandra-Kurla Complex, Bandra (E) |
Mumbai - 400 001 | Mumbai - 400 051 |
Scrip Code: 532497 | Symbol: RADICO |
Subject: Investor's presentation on Financial Results for the Quarter and Financial Year ended March 31, 2024
Dear Sir / Madam,
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015, we enclose herewith a copy of Investor's presentation on Financial Results for the quarter and financial year ended March 31, 2024 for your reference and records.
Thanking you,
Yours faithfully,
For Radico Khaitan Limited
Dinesh Kumar Gupta
Digitally signed by Dinesh Kumar Gupta Date: 2024.05.14 16:12:13 +05'30'
(Dinesh Kumar Gupta)
Senior Vice President - Legal &
Company Secretary
Email Id:investor@radico.co.in
Encl. as above
RADICO KHAITAN LIMITED
Plot No. J-l, Block B-1, Mohan Co-op. Industrial area
Mathura Road, New Delhi-110044
Ph: (91-11) 4097 5444/555 Fax: (91-11) 4167 8841-42
Registered Office: Rampur Distillery, Bareilly Road, Rampur-244901 (UP.)
Phones: 0595-2350601/2, 2351703 Fax: 0595-2350008
E-mail: info@radico.co.in, website: www.radicokhaitan.com
CIN No.: L26941UP1983PLC027278
Radico Khaitan Ltd.
(BSE: 532497; NSE: RADICO)
Q4 FY2024 Earnings
Presentation
Q4 FY2024 Performance Highlights
Sustained strong operating performance led by Prestige & Above category portfolio
Q4 FY2024 vs. Q4 FY2023
- Total IMFL volume* of 7.16 Million Cases (-1.2%)
- Prestige & Above brands volume of 2.92 Million Cases (+14.2%)
- Prestige & Above brands net sales of `503.5 Cr (+16.1%)
- Prestige & Above brands contribution to the IMFL volumes of 49.6% (vs. 40.2%)
- Prestige & Above brands contribution to the Total IMFL sales value of 73.2% (vs. 65.8%)
- Revenue from Operations (Net) of `1,078.7 Cr (+29.7%) o Gross Profit of `442.0 Cr (+31.0%) at 41.0% margin
o EBITDA of `125.6 Cr (+56.8%) at 11.6% margin
o Total comprehensive income of `59.1 Cr (+62.1%)
- Including brands on Royalty
12M FY2024 vs. 12M FY2023
- Total IMFL volume* of 28.73 Million Cases (+1.7%)
- Prestige & Above brands volume of 11.26 Million Cases (+20.3%)
- Prestige & Above brands net sales of `1,932.4 Cr (+29.2%)
- Prestige & Above brands contribution to the IMFL volumes of 45.6% (vs. 37.5%)
- Prestige & Above brands contribution to the Total IMFL sales value of 68.5% (vs. 59.8%)
-
Revenue from Operations (Net) of `4,118.5 Cr (+31.0%) o Gross Profit of `1,752.0 Cr (+33.2%) at 42.5% margin o EBITDA of `507.3 Cr (+41.6%) at 12.3% margin
o Total comprehensive income of `256.7 Cr (+26.7%)
Consistent dividend of 150% or `3.00 per share (payout ratio of 15.7%) despite challenging operating environment
Earnings Presentation | Q4 & Full Year FY2024
2
Management Perspectives
Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said:
"FY2024 has been a year of consolidation for Radico Khaitan. During the year, we delivered strong operational performance despite a difficult macroeconomic environment. We ended the year with robust Prestige & Above brand volume growth, underscoring the strength of our brand portfolio and excellent execution capabilities. Radico Khaitan has been strengthening its core brands through focused marketing investments and launching select new brands in the super-premium and luxury segments.
We remain focused on implementing our strategic plan by driving operational efficiency, introducing innovative products, and expanding our presence both on-trade and off-trade to sustain long-term profitable growth. During the year, we completed the commissioning of our 350 KLPD distillery at Sitapur. The commissioning of this facility not only secures long-term ENA supplies but also positions us strongly to capitalize on future growth opportunities in the branded business with enhanced bottling capacities.
With rising affluence, low per-capita consumption levels, and a strong premiumization trend, we are confident in the mid-tolong-term potential of the Indian alcobev sector. To continue serving discerning consumers, Radico Khaitan is progressing well on its brand creation journey with innovation and consumer aspirations at its core, backed by our integrated manufacturing facilities and distribution platform."
Earnings Presentation | Q4 & Full Year FY2024
3
Management Perspectives
Commenting on the results and performance, Mr. Abhishek Khaitan, Managing Director said:
"Radico Khaitan continues to deliver robust premium volume growth driven by our integrated brand strategy. We remain committed to a focused product portfolio of premium brands where consumer aspirations drive brand choice. From ideation to blend development, packaging, marketing, brand communication, distribution, and delivering value to consumers, we have a well-defined roadmap at each stage of the product life cycle. We are confident that these strategies will continue to help us deliver balanced growth and value creation for all our stakeholders.
While the premium segment continued to see strong positive traction, demand trends in the regular category remained below expectations owing to a general up-trending by certain consumers and a slowdown at the lower end. Given our premiumization focus, our Prestige & Above category brands today account for 46% of our IMFL sales volume and 69% of IMFL sales value. In this context, it is heartening to note that the Magic Moments brand family has achieved 6.3 million case sales and crossed the milestone of Rs. 1000 Crore in sales value, growing at 25% over last year.
During FY2024, while the prices of certain packaging materials have been stable, the cost of grain, ENA, and glass has been volatile. This has led to significant pressure on our gross margins. However, with our premium product mix and price increases, we have been able to offset the pressure of raw material prices. With the expectations of a normal monsoon and better crop yield, we are seeing early signs of softening grain prices. We believe that the worst of the input cost increases is behind us, and we expect to benefit from any tailwinds in raw material prices in FY2025."
Earnings Presentation | Q4 & Full Year FY2024
4
Performance Trend
Q4 | y-o-y | Q3 | q-o-q | Full Year | y-o-y | |||
FY2024 | FY2023 | Growth (%) | FY2024 | Growth (%) | FY2024 | FY2023 | Growth (%) | |
Operational Performance (Million Cases) | ||||||||
Prestige & Above | 2.92 | 2.55 | 14.2% | 3.11 | (6.4)% | 11.26 | 9.35 | 20.3% |
Regular & Others | 2.97 | 3.80 | (22.0)% | 3.12 | (5.0)% | 13.42 | 15.62 | (14.1)% |
Total Own Volume | 5.88 | 6.35 | (7.5)% | 6.24 | (5.7)% | 24.68 | 24.97 | (1.2)% |
Prestige & Above as % of Total | 49.6% | 40.2% | 49.9% | 45.6% | 37.5% | |||
Royalty Brands | 1.28 | 0.89 | 1.01 | 4.05 | 3.26 | |||
Total Volume | 7.16 | 7.24 | (1.2)% | 7.25 | (1.2)% | 28.73 | 28.24 | 1.7% |
Revenue Break up (` Crore) | ||||||||
IMFL (A) | 687.5 | 658.9 | 4.3% | 729.4 | (5.7)% | 2,821.5 | 2,501.4 | 12.8% |
Prestige & Above | 503.5 | 433.6 | 16.1% | 519.7 | (3.1)% | 1,932.4 | 1,496.2 | 29.2% |
Regular & Others | 171.5 | 217.5 | (21.1)% | 199.7 | (14.1)% | 850.9 | 978.0 | (13.0)% |
Other | 12.4 | 7.7 | 10.0 | 38.2 | 27.3 | |||
Non IMFL (B) | 391.2 | 172.9 | 126.2% | 431.5 | (9.3)% | 1,297.1 | 641.4 | 102.2% |
Revenue from Operations (Net) (A+B) | 1,078.7 | 831.8 | 29.7% | 1,160.9 | (7.1)% | 4,118.5 | 3,142.8 | 31.0% |
Prestige & Above as % of Total IMFL Revenue | 73.2% | 65.8% | 71.3% | 68.5% | 59.8% | |||
IMFL as % of Total Revenue | 63.7% | 79.2% | 62.8% | 68.5% | 79.6% | |||
Above financials are on Standalone basis
Earnings Presentation | Q4 & Full Year FY2024
5
Performance Trend
Q4 | y-o-y | Q3 | q-o-q | Full Year | y-o-y | |||
FY2024 | FY2023 | Growth (%) | FY2024 | Growth (%) | FY2024 | FY2023 | Growth (%) | |
Financial Performance (` Crore) | ||||||||
Revenue from Operations (Gross) | 3,894.6 | 3,375.4 | 15.4% | 4,111.2 | (5.3)% | 15,483.9 | 12,743.9 | 21.5% |
Revenue from Operations (Net) | 1,078.7 | 831.8 | 29.7% | 1,160.9 | (7.1)% | 4,118.5 | 3,142.8 | 31.0% |
Gross Profit | 442.0 | 337.4 | 31.0% | 485.8 | (9.0)% | 1,752.0 | 1,314.9 | 33.2% |
Gross Margin (%) | 41.0% | 40.6% | 41.8% | 42.5% | 41.8% | |||
EBITDA | 125.6 | 80.1 | 56.8% | 142.2 | (11.7)% | 507.3 | 358.2 | 41.6% |
EBITDA Margin (%) | 11.6% | 9.6% | 12.2% | 12.3% | 11.4% | |||
Profit Before Tax | 76.5 | 51.4 | 49.0% | 98.2 | (22.0)% | 342.0 | 274.8 | 24.5% |
Total Comprehensive Income | 59.1 | 36.5 | 62.1% | 73.4 | (19.4)% | 256.7 | 202.6 | 26.7% |
Total Comprehensive Income Margin (%) | 5.5% | 4.4% | 6.3% | 6.2% | 6.4% | |||
Basic EPS (`) | 4.25 | 2.79 | 52.4% | 5.52 | (23.1)% | 19.13 | 15.29 | 25.1% |
Above financials are on Standalone basis
Earnings Presentation | Q4 & Full Year FY2024
6
Performance Trend
Q4 | y-o-y | Q3 | q-o-q | Full Year | y-o-y | |||||
(` Crore) | FY2024 | FY2023 | Growth (%) | FY2024 | Growth (%) | FY2024 | FY2023 | Growth (%) | ||
Revenue from Operations (Gross) | 3,894.6 | 3,375.4 | 15.4% | 4,111.2 | (5.3)% | 15,483.9 | 12,743.9 | 21.5% | ||
Revenue from Operations (Net) | 1,078.7 | 831.8 | 29.7% | 1,160.9 | (7.1)% | 4,118.5 | 3,142.8 | 31.0% | ||
Other Income | 2.2 | 1.4 | 63.1% | 4.8 | (53.7)% | 8.9 | 9.4 | (5.6)% | ||
Income from Operations | 1,080.9 | 833.2 | 29.7% | 1,165.7 | (7.3)% | 4,127.4 | 3,152.2 | 30.9% | ||
Cost of Goods Sold | 636.7 | 494.4 | 28.8% | 675.1 | (5.7)% | 2,366.5 | 1,827.9 | 29.5% | ||
Employee Benefit | 47.0 | 44.5 | 5.5% | 58.9 | (20.2)% | 195.8 | 166.7 | 17.5% | ||
Selling & Distribution | 112.1 | 83.2 | 34.6% | 113.2 | (1.0)% | 432.6 | 329.0 | 31.5% | ||
Depreciation | 31.5 | 19.9 | 58.3% | 31.8 | (0.8)% | 113.8 | 70.9 | 60.5% | ||
Interest | 16.7 | 9.0 | 85.2% | 17.7 | (5.8)% | 59.1 | 22.1 | 167.4% | ||
Other Operating Expenses | 160.5 | 128.5 | 24.9% | 170.8 | (6.0)% | 617.6 | 458.5 | 34.7% | ||
Total Expenses | 1,004.4 | 779.6 | 28.8% | 1,067.6 | (5.9)% | 3,785.4 | 2,875.2 | 31.7% | ||
Profit Before Exceptional Item & Tax | 76.5 | 53.6 | 42.7% | 98.2 | (22.0)% | 342.0 | 277.0 | 23.5% | ||
Exceptional Items | 0.0 | (2.3) | 0.0 | 0.0 | (2.3) | |||||
Profit Before Tax | 76.5 | 51.4 | 49.0% | 98.2 | (22.0)% | 342.0 | 274.8 | 24.5% | ||
Current Tax | 14.3 | 8.6 | 21.9 | 72.4 | 68.9 | |||||
Previous Year Adjustments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||
Deferred Tax | 5.5 | 5.5 | 2.4 | 13.9 | 1.5 | |||||
Net Profit | 56.8 | 37.3 | 52.4% | 73.8 | (23.1)% | 255.8 | 204.4 | 25.1% | ||
Net Income Margin (%) | 5.3% | 4.5% | 6.4% | 6.2% | 6.5% | |||||
Other Comprehensive Expenses / (Income) | (2.3) | 0.8 | 0.5 | (0.9) | 1.9 | |||||
Total Comprehensive Income | 59.1 | 36.5 | 62.1% | 73.4 | (19.4)% | 256.7 | 202.6 | 26.7% | ||
Total Comprehensive Income Margin (%) | 5.5% | 4.4% | 6.3% | 6.2% | 6.4% | |||||
Earnings Presentation | Q4 & Full Year FY2024 | Exceptional item of Q4 FY23 includes ` 2.25 Cr of arrears payable on account of wage revision applicable from 2016 |
7
Performance Discussion
Q4 FY2024 Highlights
- Revenue from Operations (Net) grew by 29.7% y-o-y. Total IMFL volume* decreased 1.2% whereas Prestige & Above category volume grew 14.2%. Prestige & Above net revenue growth was 16.1% compared to Q4 FY2023. We expect to continue to deliver a double-digit premium volume growth in FY2025. Non-IMFL revenue growth was due to full capacity utilization of the Sitapur plant, incremental country liquor volumes from Sitapur coupled with the country liquor price increases received w.e.f. 1-April-2023.
- Gross Margin during the quarter was 41.0% compared to 40.6% in Q4 FY2023 and 41.8% in Q3 FY2024. Gross Margin was impacted Y-o-Y basis due to significant foodgrain inflation. Grain price inflation had a negative impact of 490 bps Y-o-Y on Gross Margin. Despite commodity inflation in the ENA and grain prices, we have been able to sustain Gross Margin due to the ongoing premiumization and the price increases in the IMFL business. Although, prices of certain packaging materials have softened recently, we cautiously monitor the trends of Grain, ENA and glass bottles where volatility persists.
- The Company's strategy is to continue to make prudent marketing investments over existing core brands and new launches to sustain the growth and market share. During Q4 FY2024, A&SP was 7.4% of IMFL sales compared to 4.5% in Q4 FY2023. On a quarterly basis, the amount may vary but we expect to maintain A&SP spend around 6% to 8% of our IMFL revenues to be able to drive the sales momentum.
- The Company has incurred `891 Crore on the Rampur Dual Feed, Sitapur Green Field, and other projects since April 2022.
As of March 31, 2024 | ` Crore | Comment |
Total Debt | 737.1 | Long Term ` 290.0 Crore, Short Term (including current maturities) ` 447.1 Crore |
Cash & Cash Equivalents | (50.0) | Adjusted for ` 50 Crore advances from customers against which dispatches were made in first |
week of April 2024 | ||
Net Debt | 687.1 | Increase in Net Debt of ` 76.1 Cr since March 31, 2023 |
Earnings Presentation | Q4 & Full Year FY2024 | * Including brands on Royalty |
8
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Disclaimer
Radico Khaitan Limited published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 11:56:02 UTC.
