Sula Vineyards Limited has informed the Exchange about Investor Presentation
Date: 5th February 2025
To,
To,
National Stock Exchange of India Limited (“NSE”),
The Listing Department “Exchange Plaza”, 5th Floor Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (East), Mumbai – 400 051. NSE Symbol: SULA ISIN: INE142Q01026
Dear Sir/Madam,
Sub: Submission of Investor Presentation Q3 of FY25
BSE Limited (“BSE”), Corporate Relationship Department, 2nd Floor, New Trading Ring, P.J. Towers, Dalal Street, Mumbai – 400 001.
BSE Scrip Code: 543711 ISIN: INE142Q01026
Please find attached herewith the investor presentation on the Financial Results of Sula Vineyards Limited for the quarter ended 31st December 2024.
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 made available on the Company’s website, at https://sulavineyards.com/investor- relations.php
You are requested to kindly take the same on your records.
Thanking you, For Sula Vineyards Limited
Shalaka Koparkar Company Secretary & Compliance Officer Membership No: A25314
Investor Presentation Q3 & 9M FY25
February 2025
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. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this 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
Content Summary
1
Q3 & 9M FY25 Highlights
2
Company Overview
3
Growth Strategy
3
Our Latest Launch
Sula Merlot
With its velvety smooth texture, rich fruit flavors, and notes of chocolate and cherries, Sula Merlot is a smooth, lush red crafted to captivate wine lovers.
Perfectly suited to the Indian palate, this elegant and delightful wine is best enjoyed slightly chilled, making it a refreshing choice for any occasion.
4
SulaFest 2025: A Super Success
•
Strong turnout with 10,000+ attendees
• Wine Sales up sharply versus
previous editions
•
Sula cans a hit at the Fest
• Moving forward, SulaFest
planned to be a biennial event
5
Performance Highlights
Q3 & 9M FY25
Key Highlights – Q3 FY25
▪ Net Revenue: Rs. 217.5 Cr 0.6% YoY
Financials
▪ Gross Profit: Rs. 135.2 Cr 7.3% YoY
▪ EBITDA: Rs. 53.9 Cr 26.3% YoY5
▪ Own Brands Revenue: Rs. 194.7 Cr 1.0% YoY
Own Brands
▪ Elite & Premium continued its momentum (+5.6% YoY) led by healthy double-digit growth in
Iconic brands – The Source and RASA. Share at all-time high of 80.5% (vs. 77% LY)
▪ Revenue ex-Maharashtra and Karnataka grew 8% YoY. West Bengal, Haryana, Delhi, MP,
Rajasthan, Chandigarh, among others saw strong double-digit growth
▪ Wine Tourism hit a quarterly record revenue of Rs. 16.4 Cr 11.6% YoY.
▪ Healthy growth with higher occupancy (81% vs 76% LY), spend per guest in a vibrant festive season
Wine Tourism
▪
SulaFest and Planned expansions to boost segment performance in Q4 FY25 and FY26 o SulaFest Feb 2025: A Success with Fest attended by over 10,000 people across 2 days. o Dindori Bottle Shop & TR full launch in Q4; Facility Expansion at Domaine Sula operational in H2FY26 o New 30-key Resort near York slated to open in H2FY26 expanding room capacity by 30% to 130+ keys
Note: EBITDA includes Other Income. TR: Tasting Room. Facility Expansion at Domaine Sula includes launch of new Tasting Room, bottle shop & restaurant expansion
7
Own Brands Growth – Elite & Premium Continues to See Healthy Traction
Economy & Popular
Elite & Premium
Q3FY24
23%
77%
Q3 FY25
Value
Volume
-14.6%^
-5.6%
+5.6%
+3.0%
9M FY25
Value*
Volume
-5.9%
-7.3%
+6.8%
+0.8%
Economy & Popular
Elite & Premium
Portfolio Mix
Portfolio Mix
Q3FY25
20%
80%
9MFY24
25%
75%
9MFY25
23%
77%
Elite & Premium
Economy & Popular
Elite & Premium
Economy & Popular
Note: • ^Higher S&D in distribution (net off from revenue) and lower WIPS led to Value Change % being 900 bps lower than Volume Change % for Economy & Popular in Q3 •
*Value Change in 9MFY25 includes WIPS unwinding benefit of INR 10 Cr.
8 8
Wine Tourism Update – Q3 FY25
Record High Quarterly Revenue in Q3 FY25 driven by a Vibrant Festive & Wedding Season
81%
Avg. Room Occupancy Up 500 bps YoY
INR 10,500+
Avg. Room Revenue Up 34% YoY
94,033*
Visitor Footfall down 10% YoY
Added three stylish villas and 16 rooms overlooking the picturesque Gangapur lake in Nasik
Improved occupancy led by a strong festive and wedding season
Significantly higher ARRs led by healthy festive demand and record number of wedding bookings
Lower footfalls given focus on improving spend per guest and elevating visitor experience
Note: *Footfall includes visitors at The Source, Beyond, Yorks (Nashik), and Domaine Sula (Karnataka)
9 9
Profit & Loss Statement – Q3 & 9M FY25
Particulars (in INR Cr))
Q3Y25
Q3FY24
- Own Brands
- Wine Tourism
- Others (incl. BIO)
Net Revenue
Excise Duty
Cost of Goods Sold
Gross Profit
Gross Margin %
Employee Cost
Other Expenses
EBITDA
194.7
192.8
16.4
6.4
14.7
11.4
217.5
218.9
16.5
64.9
135.2
62.4%
25.3
56.9
53.9
14.5
57.2
145.8
67.0%
22.7
51.3
73.2
Y-o-Y
1.0%
11.6%
-43.7%
-0.6%
13.7%
13.5%
-7.3%
-462bps
11.6%
10.9%
-26.3%
EBITDA Margin %
24.8%
33.5%
-866bps
Depreciation & Amortisation
Finance Costs
PBT
Tax
PAT
PAT Margin %
Basic EPS (INR Rs.)
8.9
7.8
37.2
9.2
28.1
12.9%
3.32
8.1
8.1
57.0
14.1
43.0
10.1%
-3.4%
-34.8%
-35.0%
-34.7%
9MFY25
9MFY24
Y-o-Y
436.5
421.3
39.9
12.7
489.2
32.9
116.3
336.2
69.1%
72.9
143.6
123.5
25.3%
26.3
22.5
74.8
17.6
57.2
38.4
21.2
480.8
31.7
109.3
339.7
71.2%
65.9
123.6
150.3
31.3%
23.3
19.9
107.1
27.3
79.8
3.6%
4.1%
-39.9%
1.7%
3.5%
6.4%
-1.0%
-209bps
10.7%
16.2%
-17.8%
-600bps
12.8%
12.9%
-30.2%
-35.5%
-28.3%
Q3 FY25 Performance Update
o Q3 Revenue growth subdued due to -
• Broad-based consumption slowdown in Urban India
• Election-related disruptions in Maharashtra, including dry
days and restrictions.
• WIPS credit being lower by INR 4.7 Cr with capping of WIPS
at INR 20 Cr p.a. at Domaine Dindori
• Higher S&D spend in distribution markets also impacted
revenue as those are netted off from revenue
o Q3 Gross Margins primarily impacted by –
• Lower WIPS credit and higher S&D in distribution markets
Both these costs also flowed to hit EBITDA.
o Commenced production at Nashik unit in Jan’25. Well-placed to realize 100% of potential WIPS from FY26 vs 80% in FY25
o Other expenses rose on account of higher investment in
market and brand development pan-India
o Outlook: Targeting significant earnings expansion from FY26
19.6%
-674bps
11.7%
16.6%
-490bps
5.09
-34.7%
6.77
9.45
-28.3%
Note: Gross Profit = Net Revenue from Operations - Excise Duty – Cost of Goods Sold. EBITDA includes Other Income
10
Company Overview
11
Key Strengths
India’s Leading Wine Company
Strong Product Portfolio of Award-Winning Wines
❖ Market leader with >50% share in domestic wines
❖ Winery capacity:16.7 Mn liters, amongst top 5 in Asia
❖ Sula’s Shiraz Cabernet - India’s largest selling wine
❖ Wide & Diverse Portfolio of 68 labels across price points and
grape varietals
❖ Sula has won 50+ Awards the last decade
Thriving Wine Tourism Business
Robust Sourcing & Distribution Infrastructure
❖ Two Luxury Vineyard Resorts in Nashik with 104 Keys; and
Three Wine Tourism Centers (Tasting & Tours, Gourmet Dining) at Domaine Sula, Milestone Cellars and York
❖ Among world’s most visited vineyards with 350K+ visitors p.a.
❖ Wine Tourism business scaled rapidly at 25% CAGR (FY22-24)
❖ 2,800+ acres of contracted vineyards, higher than next two
Indian wine producers combined
❖ ~25,000 POS touchpoints across 25 states and 6 UTs
Fostering Sustainability
Strong Performance Track Record
❖ >60% of annual energy needs met through Solar Energy
❖ Robust Performance: Delivered Revenue, EBITDA and PAT
❖ Asia’s first wine company to get Gold Certificate from
International Wineries for Climate Action
CAGR of 14%, 42% and 208% over FY22-24
❖ Robust Return Ratios: ROCE of 25.2% and ROE of 17%
❖ Plan to install upto 2 MW of Battery Energy Storage by Q3FY26
❖ Healthy Balance Sheet with Debt-to-EBITDA at 1.6x
12 12
“Our Brands” – Wide & Diverse Portfolio across Price Points to Choose From
Brands
3 Labels
6 Labels
12 Labels
3 Labels
27 Labels
17 Labels
▪ Wide portfolio of 68 labels across 14 brands ▪ Category Split: Elite - 21 labels, Premium - 14 labels, Economy - 10 labels, Popular – 6 labels, and 17 Import labels
Note: All pricing are as per the state of Maharashtra
13
Robust & Growing Pan-India Distribution Network
Domestic presence in 23 States & 7 UTs
51 Distributors, 12 Corporations, 14 Licensed resellers, 6 Company depots, 3 Defence units
Points of sale ~25,000
Exports to 29 countries
Sula’s distribution presence
Owned production facility
Corporate office
Regional offices
14
Secured & Ample Wine Grape Supply to Meet Long-term Growth Needs
2,800+ acres Vineyards accessible to Sula covering >90% annual supply
Only a Small Fraction of total grape cultivation in India currently used for Wine Grapes
2,200+ acres Under long term supply contract with built-in price hike
Up to 12 years contract life and an option to renew further with mutual consent
Direct engagement with farmers on best practices to drive productivity
Continual focus to improve cost and quality of grape sourcing
Strong Brand and Farmer Trust provide solid foundation - seamless acreage expansion for future growth
15
Thriving Wine Tourism Business - Amongst Most Visited Vineyards Globally
Two Luxury Resorts (The Source & Beyond) at Nashik with 100+ Keys
Wine Tourism Facilities (Tasting & Tours, Bottle Shop & Gourmet Dining)
Domaine Sula (Karnataka)
Milestone Cellars (Nashik)
•
The Source and Beyond offer tasting & tours and gourmet dining in addition to luxury accommodations
• Among the most visited vineyards with 3.5+ lakh visitors per year, average occupancy
of 76% and ARR of INR 10,000+ in FY24
York offers great views of the lake while enjoying wine & gourmet dining. It sees 35,000+ visitors annually
Domaine Sula is Sula’s Karnataka winery and perfect spot for wine tasting & tour, gourmet dining
Located just 30 minutes from Gujarat border, Milestone is the first wine bar outside Sula campus
Upcoming Expansion Plans
D2C Wine Business – Brief Overview
Q4 FY25
FY26
•
Launch of 3,500 sq ft Dindori Tasting Room and Bottle Shop at ND Wines
• New tasting room, expanded bottle shop and
restaurant capacity at Domaine Sula in H2FY26
• 30 Key Resort with convention facilities to open
at York Winery in H2FY26
•
‘Wine Tourism provides a great retail platform for D2C wine business.
• Expansion of Wine Tourism business bodes well for Sula enabling expansion
of the lucrative D2C wine business
16
Sustainability is Key Focus Area
~3MW installed solar PV capacity - Provided 60%+ of annual energy needs in 9MFY25
Generated around 4 million kWH from solar energy at Sula’s owned and leased facilities in Maharashtra and Karnataka in FY24
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
Gold 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
Plan to install upto 2 MW of Battery Energy Storage by Q3FY26. These systems will store excess energy and make it available for use during peak load times resulting in cost savings.
Optimizing packaging materials using lightweight bottles
17
Strong Performance Track Record on All Metrics
Net Revenue
EBITDA & EBITDA Margin %
PAT & PAT Margin %
CAGR: 14%
421.5
456.7
616.4
557.0
CAGR: 42%
15.4%
64.5
25.4%
116.1
28.9%
29.8%
183.6
160.9
CAGR: 208%
0.8%
3.2
11.4%
52.1
15.2%
15.1%
84.1
93.3
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
(INR Cr)
Return on Capital (ROCE)
Return on equity (ROE)
Debt-to-EBITDA & Debt-to-Equity
20.9%
23.0%
25.2%
10.7%
18.1%
17.3%
14.9%
1.0%
Debt to EBITDA
Debt to Equity
1.0
4.7
0.6
2.0
0.4
1.2
0.5
1.6
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
18
Growth Strategy
19
Growth Strategy
Accelerating Earnings Growth over next 3 years (FY25-FY28) with improved EBITDA margins and capital efficiency
1
6
2
5
3
4
Product Development
• Continue launching new products to meet evolving consumer demands
Calibrated Capacity Expansion
• On-track to expand Cellar capacity by 2.5 Mn Liters by
FY26 at 33% lower capex
Expand Market Penetration
• Tapping new markets (Andhra Pradesh, Denmark and Iceland) • Significant expansion in Footprint of ‘The Source’: Ensure much wider national availability of ‘The Source’ range with rollout of more labels to more states
Expand Wine Tourism & D2C Business
• Launch of Dindori Tasting Room and Bottle Shop in Q4FY25 • Tasting room, expanded bottle shop & restaurant at Domaine Sula in H2FY26 • 30 Key Resort at York Winery in H2FY26
Augment Wine Adoption & Brand Visibility
• Targeted promotion campaigns and Events such as SulaFest • Continue expanding Pan-India tastings
Strategic M&A
• Pursue strategic investments and acquisitions in the Indian AlcoBev
Industry
20
Thank You
Sula Vineyards
For more information, please contact -
Mandar Kapse | IR Head
Email: mandar.kapse@sulawines.com
Contact No: +91 7304563606