Allied Blenders and Distillers (ABDL) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 marked the first results post-IPO, with strong operational performance and strategic initiatives implemented.

• Revenue from operations for the quarter ended 30 September 2024 was ₹202,910.49 lakhs, with total income at ₹203,111.58 lakhs, reflecting a year-over-year increase from ₹192,811.06 lakhs in Q2 FY24.

• Profit after tax for the quarter was ₹4,756.05 lakhs, up from ₹1,134.75 lakhs in the same quarter last year.

• The company completed its IPO in July 2024, raising ₹100,000 lakhs, with proceeds used primarily for debt repayment and general corporate purposes.

• The spirits industry saw subdued demand, especially in the mass premium segment, but the company gained market share in the P&A category, led by ICONiQ White.

Financial highlights

• Total income for Q2 FY25 was INR 2,031 crore, up 14.8% sequentially and 5.3% year-over-year.

• EBITDA for the quarter was ₹10,533.21 lakhs, up from ₹7,185.24 lakhs in Q2 FY24.

• Net profit was INR 48 crore, a 324% increase sequentially and year-over-year, driven by EBITDA expansion and lower interest costs.

• Gross margin improved to 42.9% in Q2 FY25, up from 39.2% in Q2 FY24 and 38.7% in Q1 FY24.

• Earnings per share (basic and diluted) for the quarter stood at ₹1.70, up from ₹0.46 in Q2 FY24.

Outlook and guidance

• Expectation of positive consumer sentiment and market growth in H2 FY25, especially with the festive season and Andhra Pradesh market reopening.

• Projected doubling of Andhra Pradesh volumes from FY24’s 1.7 million cases.

• Confident in maintaining profitable growth momentum, with focus on premiumization, gross margin improvement, and new brand investments.

• EBITDA margin expected to improve by 300 basis points over three years, targeting industry parity at 15%.

• Management expects the receivable from Canteen Stores Department (CSD) to be recoverable, with the probability of the claim against the company fructifying into a liability assessed as remote.