Sula Vineyards Limited has informed the Exchange about Investor Presentation
SULA
VINEYARDS
Date: May 04, 2023
To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. /1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051
To. BSE Limited (“BSE”) Corporate Relationship Department, 2 nd Floor, New Trading Ring, P.J. Towers, Dalal Street, Mumbai — 400 001.
NSE Symbol: SULA ISIN: INE142Q01026
BSE Scrip Code: 543711 ISIN: INE142Q01026
Dear Sir/Madam,
Sub: Submission of Investor Presentation FY23 & Q4 FY23
Please find attached herewith the investor presentation on the Financial Results of Sula Vineyards for the quarter and financial year ended March 31, 2023.
This is being submitted in compliance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended.
The same is also hosted relati
hp
on
the Company's website at https:/sulavineyards.com/ir
You are requested to kindly take the same on your records.
Thanking you,
For Sula Vineyards Limited
Company Secretary and Compliance Officer Membership No.: A33566
Encl: As above
Sula Vineyards Limited (formerly known as Sula Vineyards Private Limited) Regd. Office: 901, Solaris One, N.S. Phadke Marg, Andheri (E), Mumbai 400069, Maharashtra, India. Tel: 022-6128 0606/607 Fax: 022-2684 6064 Email: info@sulawines.com CIN: L15549MH2003PLC 139352
Investor Presentation FY23 & Q4FY23
1
Safe Harbour
This presentation has been prepared by Sula Vineyards Limited (the “Company”) solely information purpose only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for any securities of the Company, nor shall it or any part of it or the Fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment, therefore. The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company before making any decision on the basis of this information.
This presentation contains statements that may not be based on historical information or facts but that may constitute forward-looking statements. These forward-looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable, but these assumptions may prove to be incorrect. Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this Potential presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. By viewing this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. None of the Company, their affiliates, agents or advisors,, promoters or any other persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith.
2
Table of Contents
01
02
03
FY23 Highlights
Business Snapshot
Financial Statements & KPIs
3
FY23 Highlights
4
Executive Summary
Market leader with close to 60%+ market share in premium wines1,
29.1% EBITDA margin for FY23 vs. 25.6% for FY22
India’s best-selling red, white, rosé & sparkling wines
Winery capacity of 16.7 Mn liters, amongst the top 5 wineries in Asia
Sourcing from 2,800+ acres of vineyards, significantly higher than the next two wine producers in India
Sula’s Shiraz Cabernet - India’s largest selling wine by value
One of the world’s most visited vineyards; 340,000+ visitors2
Strong focus on sustainability
Certified as Great Place to Work in CY21 & CY22
Source: Company data Notes: 1) Includes Elite and Premium wine categories;2) As of FY23
5
Key Highlights – FY23
Revenue from operations growth : 22% YoY at Rs. 553 Cr EBITDA margin at 29.1%; EBITDA growth : 38.7% YoY PAT margin : 15.2%; growth of 370 bps over FY22 EPS growth of 50% YoY from Rs.6.8 to Rs.10.2
Own Brands Revenue growth : 26% YoY; constituting 87% of revenue Of this, Elite & Premium wine revenues contributed 72%, growing 29% YoY Crossed 1 million cases, registering volume growth of 19% YoY
Financials
Own Brands
Wine Tourism
Wine Tourism revenue growth : 30% YoY Footfalls : 3.4 lakhs+ Tastings across the country : 1.7 lakhs, up 80% from FY22
6
Profit & Loss Statement – FY23 & Q4FY23
Particulars (Rs. Cr.) Revenue from Operations
Own Brands
Wine Tourism
Other Income
Total Income
Cost of Goods Sold
Excise Duty on sales
Employee Benefits Expense
Other Expenses
EBITDA
EBITDA %
Depreciation and Amortisation Expenses
Finance Costs
Profit before Tax (PBT)
PBT %
Total Tax Expense
Profit for the year (PAT)
PAT %
Diluted EPS (Rs.)
FY23 553.2
480.7
45.0
3.5
556.7
133.1
36.9
77.5
148.2
160.9
29.1%
25.9
21.1
114.0
20.6%
29.9
84.0
15.2%
10.18
FY22 453.9
380.9
34.6
2.8
456.7
117.1
29.5
65.3
128.6
116.1
25.6%
23.6
22.9
69.5
15.3%
17.4
52.1
11.5%
6.79
Y-o-Y 21.9%
26.2%
29.9%
25.2%
21.9%
13.8%
24.6%
18.5%
15.2%
38.7%
-
9.6%
-8.0%
63.9%
-
72.1%
61.2%
-
49.9%
Q4 FY23 120.0
Q4 FY22 112.1
103.5
12.5
0.9
120.9
23.6
6.8
20.3
38.5
31.7
90.4
10.5
0.7
112.8
20.9
5.6
18.0
38.9
29.4
26.4%
26.2%
6.8
4.8
20.1
16.7%
5.8
14.2
11.9%
1.66
6.1
4.7
18.6
16.6%
5.0
13.6
12.1%
1.72
Y-o-Y 7.1%
14.5%
18.1%
21.7%
7.1%
13.9%
17.1%
12.9%
-1.1%
8.0%
-
12.5%
2.7%
7.9%
-
16.2%
4.8%
-
-3.3%
7
Strong Financial Profile
Revenue from operations (Rs. Cr.)1
Revenue split by business segments
521.6
553.2
453.9
418.0
FY11
FY14
FY19
FY20
FY21
FY22
FY23
Includes Rs. 103.6 cr standalone revenue of PADPL, which ceased to be a subsidiary of the Company from Apr 2021
1) Discontinuation of beer business in PADPL; 2) Muted gross sales due to COVID-19
Emerged stronger after COVID-19 pandemic
0.1% 5.4%
31.0%
0.3% 4.3%
26.6%
0.6%
7.6% 7.9%
0.3%
8.1% 4.7%
63.6%
68.7%
83.9%
86.9%
FY20
FY21
FY22
FY23
Own brands
Third party brands & distribution
Wine tourism
Others
Own brands revenue by categories
32.2%
31.4%
29.4%
27.7%
67.8%
68.6%
70.6%
72.3%
FY20
FY21
FY22
FY23
Elite & Premium
Econmony & Popular
Source: Company Data Notes: 1) For FY20 and FY21, Revenue from operations also includes the revenue contribution from Sula’s erstwhile subsidiary, PADPL, which had a standalone revenue of Rs 103.6 cr in FY20 and Rs 60.8 cr FY21. PADPL ceased to be a subsidiary with effect from April 1, 2021; 2) Includes the revenue from sales of alcoholic beverages imported by Sula and revenue from brands distributed by PADPL in FY20 and FY21
8
200000%
150000%
100000%
50000%
0%
Strong Financial Performance on All Matrix
Gross profit and % margin
EBITDA and % margin
PAT and % margin
Gross Profit (Rs Cr)
% margin
EBITDA (Rs Cr)
% margin
PAT (Rs Cr)
% margin
15.2%
66.7%
369.0
65.3%
296.4
47.8%
249.2
53.3%
223.8
25.6%
29.1%
160.9
15.4%
116.1
9.7%
50.5
64.5
0.7%
3.0
-3.1%
-15.9
84.0
11.5%
52.1
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Return on capital employed (ROCE)
Return on equity (ROE)
Leverage ratios
23.04%
20.9%
10.7%
4.1%
-5.2%
1.0%
Debt to Equity
Debt to EBITDA
15.8%
13.2%
7.3x
1.2x
4.7x
1.0x
2.0x
0.6x
1.2x
0.4x
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
9
Business Snapshot
10
Sula is the Undisputed Leader of the Indian Wine Industry
Among Top 15 most followed vineyards in the world on Instagram
Domestic presence in 26 States & 6 UTs
Promotional activities by influencers
Pan-India presence
6
1
123k+ followers on Instagram and 124k+ followers on Facebook
Digital marketing
5
Strong distribution network
2
50 Distributors, 11 Corporations, 14 Licensed resellers, 7 Company depots, 3 Defence units
4
3
International presence
Leader in On- trade
Exports to 20+ countries
24,000 + Points of Sale
Secondary Sales breakup
4%
23%
72%
On-Trade Off-Trade Direct to Consumer
Sula’s distribution presence
Owned production facility
Leased production facility
Corporate office
Regional offices
11
Pioneer of Wine Tourism Business in India Leading to Strong D2C Presence
Creating wine culture through a combination of resorts, tasting rooms and restaurants, which has made Sula the leading D2C alcobev brand in India
340,000+ Footfall of visitors
310,000+ Bottles sold via D2C channel1
1,30,000 In person tastings in FY23 vs 85,000 in FY22
INR 10,500+ Avg. room revenue in FY23
Source: Company data; Notes :1)For FY23
2 Vineyard resorts in Nashik
12
Sustainability is Key Focus Area
2MW installed solar PV capacity, providing 50%+ of annual energy needs in FY23
Generated >4 million kWH from solar energy at Sula’s owned and leased facilities in Maharashtra and Karnataka in FY23
Rainwater harvesting reservoirs at all facilities with storage capacity of over 36.8 mn liters; Reduced water usage per case produced by over 11% in last three fiscal years
Member of the International Wineries for Climate Action (“IWCA”), which is part of a global campaign, led by UN and its member wineries committed to achieve net zero emissions by 2050
Sourcing over 96% of packaging material locally since FY20
Optimizing packaging materials using lightweight bottles
13
Key Business Strategies for Future
Continuous focus on Own Brands
Focus on premiumization of product
portfolio
Continue to focus on wine tourism
to bring in new consumers
Strategies
Increasing wine awareness and
consumption, and penetrating further
into Tier-1 and 2 cities in India
Pursue strategic investments and
acquisitions in the Indian wine
industry
Continue to make sustainability and climate change
readiness as the heart of Sula’s long-term strategy
Effectively use digital media to
increase awareness of wine in India
14
Financial Statements & KPIs
15
FY23 Balance Sheet (Consolidated)
Equity and Liabilities (Rs Cr)
Mar-23
Mar-22
Assets (Rs Cr)
Mar-23
Plant, Property & Equipment (net)
397.1
Equity
Equity share capital
Other equity
Lease Liability
Borrowings
Long term provisions
Deferred tax liability (net)
Total Non-Current Liabilities
Lease Liability
Borrowings
Trade payables
Other financial liabilities
Other current liabilities
Income tax liabilities (net)
Provisions
Total Current Liabilities
Total Equity and Liabilities
532.0
16.9
515.2
5.8
54.3
-
18.2
78.2
5.1
395.3
15.7
379.5
6.2
48.1
2.0
16.9
73.2
4.7
Right use of assets
Capital Work in Progress
Goodwill & Other Intangible assets
Loans & Investments
Other financial assets
Non Current tax assets (net)
Other non-current assets
Total Non-Current Assets
137.5
180.9
Inventories
82.1
21.9
19.8
2.6
2.2
271.1
881.4
67.4
14.2
18.7
1.5
2.7
290.1
758.6
Trade receivables
Cash and bank balances
Loans
Other financial assets
Other current assets
Total Current Assets
Total Assets
9.3
1.9
6.9
1.7
36.8
0.2
3.1
456.9
178.9
114.5
33.8
1.6
88.6
7.1
424.5
881.4
Mar-22
344.4
9.3
1.0
7.5
1.9
21.0
0.2
2.7
388.0
162.3
109.4
19.6
1.2
73.6
4.5
370.5
758.6
16
FY23 Cash Flow Statement (Consolidated)
Cash Flow Statement (Rs Cr)
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add : Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Mar-23
Mar-22
114.0
44.6
158.5
-42.5
116.1
-27.8
88.3
-72.7
-9.4
6.2
10.2
16.4
69.5
48.8
118.4
-14.3
104.1
-16.7
87.4
-56.8
-61.3
-30.6
40.8
10.2
17
KPIs–Wine Business & Wine Tourism Business
Particulars ( Rs. Cr)
(A) Wine Business
Own brands
– Elite (%)
– Premium (%)
– Economy (%)
– Popular (%)
Third Party Brands and distribution business
(B) Wine Tourism Business
(C) Others
Revenue from operations (A+B+C)
Year on year revenue growth (%)
Revenue contribution (%)
Wine Business - Own Brands
Wine Business - Imports
Wine Tourism Business
Others
2023
506.7
480.7
23.9
48.4
11.5
16.2
26.0
45.0
1.6
553.2
21.9%
86.9
4.7
8.1
0.3
2022
416.6
380.9
24.1
46.5
13.6
15.8
35.7
34.6
2.7
453.9
8.6%
83.9
7.9
7.6
0.6
18
KPIs–Wine Business & Wine Tourism Business
Particulars - Wine Business
Elite and Premium
Number of cases
Volume contribution (%)
Revenue of operations (Rs. Cr)
Revenue contribution (%)
Economy and Popular
Number of cases
Volume contribution (%)
Revenue of operations (Rs. Cr)
Revenue contribution (%)
Particulars – Wine Tourism Business
Average Room Revenue (ARR) (in Rs.)
Average Rooms Occupancy (%)
2023
2022
5,50,278
4,42,833
51.9
347.6
72.3
49.6
268.8
70.6
5,10,974
4,50,712
48.1
133.1
27.7
2023
10,568
82.4
50.4
112.1
29.4
2022
10,367
71.0
19
KPIs– Others
Particulars
Gross Margin (Rs Cr)
Gross Margin (%)
EBITDA (Rs Cr)
EBITDA Margin (%)
PAT (Rs Cr)
PAT Margin (%)
Net Asset turnover (Times)
Cash Conversion Cycle (days)
Days Sales Outstanding (days)
Days Inventory Outstanding (days)
Days Payables Outstanding (days)
ROCE – reported (%)
Net Working Capital Days
Debt to Equity Ratio (Times)
Debt to EBITDA Ratio (Times)
2023
369.0
66.7%
160.9
29.1%
84.0
15.2%
1.0
293
74
424
205
23.0%
101
0.4
1.2
2022
296.4
65.3%
116.1
25.6%
52.1
11.5%
1.1
347
98
449
200
20.9%
65
0.6
2.0
20
THANK YOU
21