Sula vineyards – pioneers in indian wines

Sula Vineyards Limited, India’s largest listed wine producer, has achieved its highest-ever Q2 revenue and profits, showcasing robust growth and a continuation of the premiumization trend.

Financial Highlights:

1. Q2FY24 Performance:

• Revenue increased by 11.6% YoY, reaching an unprecedented level.
• EBITDA rose by 18.1% YoY.
• The EBITDA margin crossed 30% for the first time in Q2.
• PAT grew by 18.4% YoY.

2. Premiumization and Market Share:

• The company’s premiumization efforts increased Elite and Premium wine share to 73.5% in Q2, up from 71.6% a year ago.
• The EBITDA margin surpassed 30% due to this premiumization strategy.

Financial Details:

1. Q2FY24 Financials:

• Revenue from Operations: Rs. 142.8 Cr (11.6% YoY growth).
• Own Brands Revenue: Rs. 126.8 Cr (12.0% YoY growth).
• EBITDA: Rs. 45.1 Cr (18.1% YoY growth).
• EBITDA Margin: 31.6% (173 bps increase).
• PAT: Rs. 23.1 Cr (18.4% YoY growth).
• PAT Margin: 16.2% (93 bps increase).

2. Consolidated H1FY24:

• Revenue from Operations: Rs. 259.4 Cr (15.6% YoY growth).
• EBITDA: Rs. 77.0 Cr (19.8% YoY growth).
• EBITDA Margin: 29.7% (102 bps increase).
• PAT: Rs. 36.8 Cr (20.5% YoY growth).

1. Premiumization and Market Share:

• The company’s premiumization efforts increased Elite and Premium wine share to 73.5% in Q2, up from 71.6% a year ago.
• The EBITDA margin surpassed 30% due to this premiumization strategy.

2. Wine Tourism:

• The wine tourism business showed substantial growth, with revenue up by 26.9% YoY in Q2.
• The CEO highlighted impressive numbers in tasting events and the popularity of new additions like lakeside villas.

3. Sustainable Practices:

• Sula Vineyards aims to be one of the world’s most sustainable wine producers.
• Plans include increasing renewable energy investments, with a target to power 70% of operations with solar energy by 2026.

4. Future Outlook:

• The strong rebound of the monsoon in September bodes well for the upcoming harvest in early 2024.
• The company is optimistic about entering Q3 with favorable conditions and maintaining wine quality across its wineries.

Other Highlights:

• The Elite & Premium wines drove growth, recording a 15.0% YoY increase in Q2.
• The wine tourism business contributed significantly to revenue, with impressive numbers in tastings and visitor footfall.
• The vineyard resorts ‘The Source’ and ‘Beyond by Sula’ showed strong occupancy rates.
• The company’s sustainable practices and renewable energy goals were emphasized.