Radico Khaitan (RADICO) Q1 24/25 earnings summary

Executive summary

• Achieved strong premium volume growth in Q1 FY25 despite challenging macroeconomic conditions, with prestige and above category volume up 14.3% year-over-year and value growth of 19.1%.

• Launched four new luxury brands in India, including Rampur Asava, Sangam World Malt, and Jaisalmer Gold Edition, expanding the premium portfolio.

• Magic Moments Vodka recorded 1.9 million cases sold in Q1 FY25, maintaining its position as the sixth-largest vodka brand globally and holding 60% of the vodka market share.

• Focus remains on premiumization, brand innovation, and expanding distribution, including partnerships such as the exclusive alcoholic beverage partner for India House at the Paris 2024 Olympics.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on August 7, 2024.

Financial highlights

• Revenue from operations (net) rose 19.1% year-over-year to ₹1,136.5 Cr; consolidated revenue for Q1 FY25 was ₹426,562.35 lakhs.

• EBITDA increased 24.6% to ₹148.2 Cr at a 13.0% margin; consolidated net profit for Q1 FY25 was ₹6,826.88 lakhs.

• IMFL volume for Q1 FY25 was 7.07 million cases, a 4% year-over-year decline, mainly due to strategic rationalization and state-specific excise issues.

• Prestige and above category now accounts for 43.4% of IMFL volume, up from 36.5% in Q1 FY24, and contributed 67.0% of IMFL sales value.

• Gross margin was 41.5%, down from 43.6% in Q1 FY24, impacted by crude grain inflation, but stable sequentially due to premiumization and price increases.

Outlook and guidance

• Management expects double-digit premium volume growth for FY2025, with stable raw material costs and ongoing premiumization supporting margin expansion.

• Maintain guidance for 15-16% margins by FY26.

• Prestige and above category expected to continue strong growth; regular category to see muted growth of 4-5%.

• Price increases for the year expected to remain between 150-170 basis points.

• Commitment to be almost debt free by FY26, with focus on returning cash to shareholders thereafter.