Allied Blenders Q1: Profits Jump Multifold | NDTV Profit - video Dailymotion

NDTV Profit

Watch Allied Blenders Q1: Profits Jump Multifold | NDTV Profit - NDTV Profit on Dailymotion

Transcript

00:00The quarter has started off to plan. I think a lot of work that has happened in the last

00:06few quarters was around consolidation of our portfolio, looking at more profitable market,

00:11sharper focus on the P&A segment, entry into the luxury segment, sharper focus on our gross

00:16margin. So a lot of numbers that you've spoken about reflects on the fact that the gross

00:20margins have expanded by over 300 basis point and it's reflecting in EBITDA growth. So the

00:26quarter one is looking good. We're quite happy where we are and the rest of the year is equally

00:30exciting.

00:31Right. And, you know, I want to understand that if you can give us a breakup as to how

00:36much the volume growth was versus how much was the value growth in Q1 FY25?

00:41Yeah, so there are two ways of looking at it. One is, of course, doing a comparison

00:45with Q1 of last financial year and second is to do it on a trend basis. So if you were

00:49to look at Q1 this financial year versus the Q4 last financial year, we are marginally

00:54up by about 3% in terms of volume and value. So trend wise, it's looking better and it

01:01is coming on back of a better state margin combination, therefore delivering a better

01:06gross margin and eventually reflecting down in EBITDA. So that's really where we are.

01:11In terms of our new brand launches, you would recall we've spoken about ICONIC earlier.

01:16So ICONIC did do 2.2 million cases last year, exited on the ARL of 3 million. Very happy

01:21to say that it's only grown and consolidated from there and it's looking more like a 4

01:25million case ARL plus and continuing to grow.

01:28Right. But Mr. Gupta, overall, you know, correct me if I'm wrong here, overall volumes were

01:33down by around roughly 1 million cases. So I want to understand what went wrong here

01:38and, you know, will this be recovered in the coming quarters?

01:42Well, I think it was all about what went right, because consciously we picked up state brand

01:48combination that offer a better margin profile. As you know, in our business,

01:53it's not a function of volume, it's a function of which volume and which state and which brand and which SQ.

01:58So this is part of what I would say a very planned portfolio consolidation.

02:04And that's why when we look at when we do the comparison versus Q1 of last financial year,

02:09you're seeing a degrowth. But when you're seeing Q1 versus Q4, that's the exit quarter, you're seeing a growth.

02:14So I think from here on, all the required work that was to be done in terms of portfolio

02:19consolidation, making the right choices in terms of state brand combination has been done.

02:24So we should hopefully see a quarter on quarter better performance in terms of volume.

02:28And we certainly look forward to catching up the million cases that we've lost.

02:32Got it. And Mr. Gupta, you know, I want to understand that, you know, when it comes to the AlcoBev segment,

02:38we always talk about how the premiumization wave has been happening in the entire industry.

02:43But I want to understand that your prestige in above category has taken some kind of hit in terms of volumes and as well as sales.

02:49So was this on account of a lower base? Is it just that or, you know, it's an actual hit.

02:57And overall, do you see the premiumization trend going ahead also in the same way as it was last year?

03:04So the PLA segment for us actually is doing exceedingly well.

03:09Officer's Choice Blue, Iconic White and Sterling B7, all three brands put together,

03:14give us a very, very strong foothold in the R25 million case P&O Whiskey segment.

03:18So we're quite happy where we are. The correction that were required were only to the extent of state

03:24or state brand combination where we are not happy with the gross margin return.

03:27So like I said, I think these corrections were required to make sure that we end up with a better margin profile,

03:32which is again reflecting in the number. Another segment that we're quite excited about is a premium and luxury segment

03:37where we launched Zoya last year. It's rolled out in two states and by the end of this quarter,

03:42we'll roll out in six more states. So we are now moving closer towards a national launch of Zoya

03:48and we're looking forward to launching a few more new products during the current financial year on the luxury side.

03:53So premiumization both from the consumer side continues and from our side will continue to be an important area of focus.

04:00Right. And which segment will these products be from? Because I believe whiskey and gin is your strong suit.

04:07Well, whiskey is definitely a strong suit. Now we have presence of luxury gin with Zoya.

04:13We are looking at consolidating our position again in whiskey, but hopefully also looking at luxury vodka,

04:19maybe looking at, you know, premium dark.

Allied Blenders Q1: Profits Jump Multifold | NDTV Profit

Category

Transcript

Recommended