Allied Blenders and Distillers (ABDL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 marked the first quarterly results post-IPO, with a mixed macroeconomic environment and early signs of rural consumption recovery.

• Total income for Q1 FY25 was ₹1,769 Cr, down 7.3% year-over-year; income from operations was ₹759 Cr, down 6.8% year-over-year.

• EBITDA grew 44% year-over-year to ₹76 Cr, with margin improving to 10% from 6.5% in Q1FY24.

• PAT for the quarter stood at ₹11 Cr, a turnaround from a loss in Q1FY24.

• Premiumization momentum continued, with P&A volume share rising to 36.9% from 33.5% year-over-year.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹176,694.81 lakhs, down from ₹190,808.13 lakhs in Q1 FY24.

• EBITDA for Q1 FY25 was ₹7,642.57 lakhs, up from ₹5,311.57 lakhs in Q1 FY24.

• PAT for Q1 FY25 was ₹1,218.73 lakhs, compared to a loss of ₹189.07 lakhs in Q1 FY24.

• Gross margin improved to 38.7% from 34.5% YoY, driven by packaging cost savings and price increases.

• Sales volume declined to 7.3 Mn cases from 8.2 Mn cases year-over-year due to delayed receivables in a key market.

Outlook and guidance

• Management maintains a double-digit volume growth outlook for FY25, with mass premium expected to grow at high single digits and P&A at mid-double digits.

• EBITDA margin is expected to exit the year above Q1 levels, targeting early double digits.

• IPO proceeds were received on 2 July 2024 and will be utilized in the subsequent quarter.

• Working capital cycle to be optimized via supply chain improvements.

• Receivables from Telangana are expected to normalize within a quarter.