Sula Vineyards Limited, India’s largest wine producer, has released its Q2 and H1 FY25 financial results, showcasing growth in its Own Brands segment, which has now expanded for ten consecutive quarters.
H1 FY25 Performance
- Net Revenue: Sula’s net revenue for the first half of FY25 reached ₹271.7 crore, marking a 3.7% year-over-year increase.
Q2 FY25 Highlights
- Overall Revenue: Quarterly revenue totaled ₹142.0 crore, down 3.7% compared to the same period last year.
- Wine Tourism Revenue: Income from wine tourism slightly declined by 0.6% year-over-year to ₹12.2 crore.
- Own Brands Revenue: Revenue from Sula’s Own Brands grew by 5.9% to ₹127.2 crore. The premium Elite & Premium categories led this growth with a 7% increase, now comprising a record 78.5% of Own Brands revenue, up from 73.5% in Q2 FY24.
Profitability and Margins
Sula reported declines in profitability and margins during the quarter:
- EBITDA: Operating profits (EBITDA) fell by 23.8% from ₹45.1 crore in Q2 FY24 to ₹34.4 crore in Q2 FY25. This led to a reduction in EBITDA margin, down 770 basis points to 25.8% from the previous year’s 33.5%.
- Net Profit: Net profit saw a significant year-over-year decrease of 20.9%, reaching ₹14.5 crore. Sula attributed these declines to challenges in urban markets and ongoing political issues in Maharashtra, where upcoming elections may lead to excise restrictions that could impact sales.
Consolidated Financials
For Q2 FY25, Sula’s consolidated revenue dipped 1.1% year-over-year to ₹132.36 crore. Meanwhile, net profit plummeted by 37% to ₹14.48 crore, reflecting a substantial contraction in margins, which dropped from 33.1% in Q2 FY24 to 25.4%. EBITDA also declined 24% year-over-year to ₹33.6 crore.
Company Overview
Sula Vineyards Limited is a pioneer in India’s wine industry, with a portfolio that includes flagship brand Sula, as well as RASA, Dindori, The Source, Satori, Madera, and Dia. The company continues to focus on expanding its premium wine segment and enhancing wine tourism, despite current challenges.
Disclaimer: This information is for general informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions. Financial data is subject to change, and past performance is not indicative of future results.
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