Radico Khaitan (RADICO) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 gross sales reached Rs.9,951.27 million, up 37% YoY; profit after tax rose 40% to Rs.358.56 million.

• IMFL sales volume increased 59% to 10.02 million cases, well above the industry’s 9–10% growth rate.

Financial highlights

• Gross sales were Rs.9,951.27 million, comprising Rs.7,214.29 million from own operations and Rs.2,736.98 million through other distilleries and bottling units.

• Profit before depreciation and tax was Rs.470.03 million; profit before tax was Rs.385.06 million and profit after tax was Rs.358.56 million.

• PBDIT rose 53% YoY to Rs.634.91 million; selling and distribution expenses increased 14% to Rs.777.6 million despite 59% IMFL case-volume growth.

• Prior-period adjustments and extraordinary items reduced reported profit by Rs.62.92 million, versus Rs.81.49 million in FY 2003-04.

Outlook and guidance

• Growth plans included organic greenfield capacity and inorganic acquisitions of brands, bottling units and distilleries; further white-spirits launches and international tie-ups were planned.

• Plans included an 80 KL/day grain-based spirit plant at Rampur to meet demand, reduce reliance on molasses-based spirit and support export potential.

• A wholly owned Dubai subsidiary was being established to promote international business, exports and investments in overseas joint ventures.