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Breweries & Distilleries company Sula Vineyards announced Q3FY24 & 9MFY24 results:
Consolidated Q3FY24:
- Revenue from Elite & Premium wines led the overall growth with an increase of 7.3% YoY.
- The wine tourism business posted a strong revenue growth of 16.0% YoY, at Rs 14.7 crore backed by setting new records for visitor numbers, revenues, and tastings over the long Christmas holiday weekend.
- EBITDA was up 12.8% YoY at Rs 73.3 crore.
- EBITDA margin up 263 bps to 33.7% from 31.0% YoY.
- PBT was at Rs 57.1 crore, a growth of 8.4% YoY, with PBT margin of 26.2%.
- PAT was at Rs 43.0 crore, a growth of 9.4% YoY, with PAT margin at 19.8%.
Consolidated 9MFY24:
- Revenue from operations at Rs 477.0 crore, up 10.0% YoY.
- Revenue from Elite & Premium wines led the growth with 15.8% YoY.
- EBITDA was at Rs 150.3 crore, translating to a 31.5% margin, up 16.3% YoY.
- PAT at Rs 79.8 crore, up 14.3% YoY.
- Our vineyard resorts ‘The Source’ and ‘Beyond by Sula’ touched ~72% occupancy on an expanded number of keys. ARR for the period was Rs 10,000 .
- Our vineyards recorded a footfall of 3,25,700 visitors, up 12% YoY.
- Our experiences teams conducted 1,72,000 tastings at our vineyards and in 60 cities across India, marking a solid 35% YoY growth.
- The Board has recommended an interim dividend of Rs 4 per share.
Commenting on the results, Sula CEO Rajeev Samant said, “We are pleased to report an all-time high quarterly revenue and profit. Our EBITDA and PAT margin also hit a record for Q3 and 9M period.
Our premiumization efforts have succeeded in taking our Elite and Premium wine share to an all-time high of 77% in Q3, up from 74.5% a year ago, contributing to an over 200 bps increase in our EBITDA margin to an all-time quarterly record. Our Elite and Premium wines clocked 7.3% growth this quarter.
Our wine tourism revenues grew in double digits, for the fourth quarter in a row. On January 27th, Sula achieved a record-breaking single-day revenue and conducted over 2,450 individual tastings, surpassing the previous highs set on December 24th, 2023.
For the first time, three of our iconic Sula Vineyards brands are now available in 250ml cans! We launched Sula Chenin Blanc, Rosé Zin, and Red Zin cans initially in Maharashtra only. Canned wine is becoming a wildly popular format the world over due to sheer convenience and we believe our Sula cans will make their presence felt in the Indian market, greatly expanding accessibility to new audiences.
In other good news, the ongoing 2024 harvest looks extremely promising with excellent quality and abundant quantity for the fourth year in a row, setting us up to comfortably meet the increasing demand for our Elite and Premium wines. This is a tribute to the hard work we have been putting in to mitigate the twin impacts of climate change and global heating.
Today, we are already one of the world's most sustainable wine producers. We take pride in being among the first 10 wineries globally and the first winery in Asia to earn the prestigious IWCA Gold status, alongside wineries such as Famila Torres and Jackson family Wines. Currently, we have over 3 MW of installed on-site solar power capacity, enabling us to meet almost 60% of our energy needs through our own renewable sources. We also have plans in place to achieve over 70% in the near future.
Given the excellent harvest this year, the ongoing boom in domestic wine tourism, and more consumers choosing our premium Indian wines, these trends bode well for the future.”
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