Radico Khaitan announces their Q2 FY2022 results
New Delhi– Radico Khaitan Limited, one of the largest spirits companies in India (referred to as “Radico Khaitan” or the “Company”), announces its results for the second quarter ended September 30, 2021.
Q2 FY22 Performance Summary
• Total IMFL volume of 6.47 Million Cases (+7.1%)
• Prestige & Above brands volume of 1.99 Million Cases (+17.7%)
• Prestige & Above brands net sales of Rs.294.34 Cr (+22.1%)
• Prestige & Above brands contribution to the total IMFL volumes of 30.8% (vs. 28.0%)
• Revenue from Operations (Net) of Rs.708.83 Cr (+12.5%)
• Gross Profit of Rs.325.05 Cr (+5.5%)
• EBITDA of Rs. 111.04 Cr (+4.1%) at 15.7% margin
• Reduction in interest costs from Rs.5.44 Cr to Rs.3.06 Cr
• Profit before Tax of Rs.94.05 Cr (+1.9%)
• Total comprehensive income of Rs.68.94 Cr
• Strong cash flow generation and net debt reduction of over Rs. 79 Crore since March 2021
H1 FY22 Performance Summary
• Total IMFL volume of 12.09 Million Cases (+26.2%)
• Prestige & Above brands volume of 3.48 Million Cases (+26.7%)
• Prestige & Above brands net sales of Rs.513.59 Cr (+30.7%)
• Prestige & Above brands contribution to the total IMFL volumes of 28.8% (vs. 28.7%)
• Revenue from Operations (Net) of Rs.1,311.59 Cr (+26.2%)
• Gross Profit of Rs.611.66 Cr (+15.0%)
• EBITDA of Rs. 202.76 Cr (+11.5%) at 15.5% margin
• Reduction in interest costs from Rs.12.01 Cr to Rs.7.69 Cr
• Profit before Tax of Rs.171.67 Cr (+14.1%)
• Total comprehensive income of Rs.128.49 Cr
Commenting on the performance, Dr. Lalit Khaitan, Chairman, and Managing Director said:
“These are exciting times at Radico Khaitan as we have launched two of the most awaited super premium brands. In October 2021, we unveiled the Royal Ranthambore Heritage Collection-Royal Crafted Whisky and two variants of Magic Moments Dazzle Vodka. Both these brands have received very strong feedback from consumers as well as trade channels for their exclusive blend, exciting packaging, and unique market positioning. We are making firm progress on our strategy of creating a stronger premium brand portfolio. We can see the gradual fruition of a long, nurturing process. I am very optimistic about the future and confident that we have an established platform and the right strategy that will deliver long term sustainable value to all our stakeholders in the future.”
Commenting on the performance, Mr. Abhishek Khaitan, Managing Director said: “During Q2 FY2022, we delivered a robust volume growth led by Prestige & Above category brands. Our new brand launches are expected to accentuate the premium volumes in the coming years. Although the operating environment has improved significantly on a quarter-on-quarter basis, we have seen unprecedented levels of input cost inflation which has impacted the profit margins, particularly for our non-IMFL business. We strongly believe that this is a temporary phenomenon and given our focus on premiumization, margins trajectory shall improve. During this period of uncertainty, we continue to focus on sustainable, premium volume growth and work alongside the supply chain to minimize the impact of input cost increases.”