Allied Blenders and Distillers Limited Reports Strong Q2 FY25 Earnings Growth with New Ventures

Allied Blenders and Distillers Limited (ABD), India’s third-largest spirits company, reported its Q2 FY25 financial results on October 29, 2024. The company’s total income reached ₹2,031 crore, marking a 14.8% increase compared to ₹1,769 crore in the previous quarter (Q1 FY25) and a 5.3% rise from ₹1,929 crore in Q2 of the previous year (FY24).

Revenue from operations was ₹870 crore, up by 14.5% from ₹759 crore in Q1 FY25 and 2.1% higher than ₹852 crore in Q2 FY24. EBITDA rose to ₹105 crore, showing a 38.8% increase over ₹76 crore in Q1 FY25 and a 46.6% growth from ₹72 crore in Q2 FY24. The company’s profit after tax (PAT) was ₹48 crore, a significant rise of 324.8% compared to ₹11.2 crore in Q1 FY25 and 319.1% higher than ₹11.3 crore in Q2 FY24.

Performance Review

In Q2 FY25, ABD reported an income from operations of ₹870 crore, which is a 14.5% increase from ₹759 crore in Q1 FY25 and a 2.1% rise from ₹852 crore in Q2 FY24. The company delivered a total of 8.3 million cases in this quarter, reflecting a growth of 14.8% compared to 7.3 million cases in Q1 FY25 and matching the 8.3 million cases from Q2 FY24. 

This quarter-on-quarter growth was driven by the premiumisation of the product range, with the volume share of Prestige & Above (P&A) brands increasing to 39.7% in Q2 FY25, up from 36.9% in Q1 FY25 and 36.5% in Q2 FY24. The P&A value share also grew to 49.0% in Q2 FY25, compared to 46.1% in Q1 FY25 and 45.3% in Q2 FY24.

The EBITDA for the quarter was ₹105 crore, representing a 38.8% increase from ₹76 crore in Q1 FY25 and a 46.6% rise from ₹72 crore in Q2 FY24. This strong performance was attributed to a focus on a profitable brand mix and cost-cutting measures. Profit After Tax (PAT) reached ₹48 crore, a substantial increase of 324.8% from ₹11.2 crore in Q1 FY25 and a 319.1% rise from ₹11.3 crore in Q2 FY24. The increase in PAT was driven by strong EBITDA growth and savings on interest costs after repaying high-interest debt with proceeds from an IPO.

Business Highlights

New Luxury Spirits Venture
ABD has partnered with Bollywood superstar Ranveer Singh to create a new luxury spirits business. This venture will focus on offering premium and luxury brands while maintaining ABD’s existing core brands.

Addition of Premium Vodka
ABD has added Russian Standard, the world’s number one Russian premium vodka, to its luxury portfolio through a strategic distribution agreement with Roust Corporation. This partnership reinforces ABD’s commitment to providing premium products to Indian consumers and expanding into the global market.

Expanding Export Markets
This year, ABD has increased its export markets from 14 to 22 countries, with a notable presence in high-growth markets in Africa. The new millionaire brand, ICONiQ White, has launched in four countries, and ABD’s first luxury product, Zoya gin, will be introduced in the UAE in Q3 FY25.

Zoya Gin Expansion
Following successful launches in Haryana and Maharashtra, ABD has expanded the presence of Zoya, a premium to luxury gin, to Goa and Rajasthan. More key markets and two new flavours are set to launch in Q3 FY25, meeting the growing demand for premium gin in major urban areas.

On October 30, 2024, Allied Blenders and Distillers Limited’s share price opened at ₹336.00 and touched the day high of ₹337.40  at 09:49 AM. 

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