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

Executive summary

• Q1 FY25 saw mixed macroeconomic signals, with soft consumption growth due to food inflation and high interest costs, but rural demand is showing early signs of recovery.

• The company completed its IPO in July 2024, listing shares on NSE and BSE, repaying all bank debt and VAT overdues, and significantly strengthening the balance sheet.

• EBITDA grew 44% year-over-year to ₹76 Cr, with margin improving to 10% from 6.5% in Q1 FY24.

• PAT for the quarter stood at ₹11 Cr, a significant turnaround from a loss in Q1 FY24.

• Premiumization momentum continues, with P&A volume share rising to 36.9% from 33.5% year-over-year and new launches like Zoya Gin and Iconic White expanding into new markets.

Financial highlights

• Income from operations was ₹759 Cr in Q1 FY25, down 6.8% year-over-year; total income at ₹1,769 Cr, down 7.3%.

• EBITDA margin rose to 10% from 6.5% a year ago.

• PAT for Q1 FY25 was ₹11 Cr, compared to a loss in Q1 FY24.

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

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

Outlook and guidance

• Double-digit volume growth is targeted for FY25, with mass premium expected to grow at mid to high single digits and P&A segment at mid-double digits.

• IMFL sector expected to see mid-single digit volume growth, with focus on driving volume growth ahead of industry, especially in whisky and luxury segments.

• Gross margin is expected to benefit from further cost-saving initiatives and backward integration, with EBITDA margin guidance in early double digits for the year.

• Receivables from Telangana remain a challenge but are expected to normalize in the next quarter.

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