Sula Vineyards (SULA) Q4 21/22 earnings summary

Executive summary

• FY22 delivered record financial results, strongest-ever EBITDA, market-share gains and improved cash flow; leadership described the position as #1 in Indian wine.

• Core-business focus, streamlined operations, product mix, pricing and dealer incentives supported a fundamental improvement in margins.

Financial highlights

• Consolidated revenue from operations was ₹4,539.16 million vs ₹4,179.59 million in FY21; consolidated EBITDAE was ₹1,160.71 million vs ₹645.12 million.

• Consolidated PBT reached ₹695.37 million vs ₹31.86 million; net profit was ₹521.39 million vs ₹28.05 million, and EPS was ₹6.79 vs ₹0.37.

• Standalone net revenue grew 8.3% to ₹4,567 million; own-brand revenue rose 30.0%; EBITDA increased 79.9% and EBITDA margin expanded 1,011 bps.

• Operating cash flow was ₹874.39 million; investing cash outflow was ₹567.92 million and financing cash outflow was ₹944.79 million.

Outlook and guidance

• FY23 outlook remained optimistic, with management citing strong wine demand and an increasing preference for wine among Indian consumers.

• Harvest 2022 exceeded 10,000 tons of wine grapes; 240 acres were planted in Maharashtra and Karnataka in 2021 to support projected demand.

• Hospitality occupancy was close to 75% in FY22 and ARR exceeded ₹10,000; FY23 sustainability targets include 64% solar contribution and 50 litres of water per case.