Sula Vineyards Q4 and ending FY23 concall highlights-
Revenues For FY23-
Consolidated sales- 553 vs 453 cr
EBITDA- 160 vs 117 cr, Margins at 29 vs 25.5 pc !!!
Net Profit- 84 vs 52 cr
More than 72 pc sales from Elite and Premium brands vs 70 pc LY with a vol growth of 20 pc
Selling of own brands now constitutes 87 pc of company revenues vs 63 pc three yrs back. 5 pc sales come from selling third party brands. 8 pc sales from Wine Tourism
Wine tourism revenues up 30 pc for FY 23- includes stay at their resort + F & B sales
Sale from Economy and Popular brands at 27 vs of total wine sales vs 29 pc LY
Vineyard resorts - “The Source” and “Beyond by Sula” recorded 82 pc occupancy for FY 23 with ARR at 10.5k !!
Vineyard footfall at 3.4 lakh visitors
Final dividend of Rs 5.25/share
Sula’s Mkt share in Wines > Rs 700/bottle at a staggering 60 pc
Marketing expenses to go up in FY 24 to push growth. Should lead to slight moderation in margins by 1-1.5 odd pc
Grape season has been strong. Company is secure on supplies for the next 18 months
60 pc of company’s sales come from Karnataka and Maharashtra. Have taken a 5 pc price hike in these Mkts. Mkt has accepted the price hike with no moderation in demand
Wine is currently only 1 pc of total alcoholic beverages industry. May grow to be 2 pc of Industry in 6-7 yrs
FY 24 Capex projection at around 55 cr
Expecting a 15 pc CAGR volume growth in Wine Industry for next 3 odd yrs with value growth being higher than that
Plan to launch various brands in Cans format and popularise this concept just as it happened in Beers 15 odd yrs ago
Number of ppl entering drinking age in India/year > population of many developed countries. These are the primary targets for the company. Plus the women Folk, who are likely to find Wine far more palatable
Wine tourism revenue for FY 23 was 80 cr. Aiming to hit 100 cr in FY24
This is a big deal for a wine company
Export sales were about 3 pc of total. Company’s main focus for foreseeable future is domestic Mkt
Company currently has 70 odd rooms at its Vineyard at Nahsik for Wine tourism. These r simply not enough due surging demand
Putting up another 30 rooms to cater to the demand. Company not spending on Capex. Company just manages them so as to remain capital light
Disc: looks like a very interesting opportunity to me. Initiated a tracking position Yesterday
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