FY2020 Performance Highlights Continued strong top line growth
Q4 FY2020 vs. Q4 FY2019
Total IMFL volume of 5.82 Million Cases (+13.1%
)oPrestige & Above brands volume of 1.53 Million Cases (+11.3%)
oPrestige & Above brands contribution to the total IMFL volumes of 26.4% (vs. 26.8% last year)
oRevenue from Operations (Net) of `585.36 Cr (+14.8%)
oGross Margin* declined from 52.6% to 48.6% due to input cost pressures offset to a certain extent by product mix changesoEBITDA** of `79.61 Cr (+9.6%)oEBITDA** margin declined from 14.2% to 13.6%
oInterest costs increased from ` 7.73 Cr to `8.46 CroTotal Comprehensive Income of ` 36.44 Cr (-8.1%
12M FY2020 vs. 12M FY2019
Total IMFL volume of 24.30 Million Cases (+12.5%)
oPrestige & Above brands volume of 7.05 Million Cases (+15.2%)
oPrestige & Above brands contribution to the total IMFL volumes of 29.0% (vs. 28.3% last year)
oRevenue from Operations (Net) of `2,427.04 Cr (+15.7%)
oGross Margin* declined from 50.6% to 48.6% due to input cost pressures offset to a certain extent by product mix changesoEBITDA** of `368.19 Cr (+5.4%)oEBITDA** margin declined from 16.7% to 15.2%
oReduction in interest costs from ` 35.48 Cr to `31.61 CroTotal Comprehensive Income of ` 224.80 Cr (+20.0%)oDividend of 100% or ` 2/share (up from 60% or ` 1.2/share
Management Perspectives
Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said
“I am pleased to report that Radico Khaitan has closed the financial year FY2020 with a remarkable operational and financial performance, especially in the context of the current pandemic and its affect on the global economies
Despite the lockdown during the later part of March 2020, we have delivered a robust double digit IMFL volumegrowth This is a reflection of our strong brandequity and consumer focused brandportfolio Management continues to make strategic and highly targeted investments in innovative marketing and products to gain market share. I am confident that we will continue to outperform the industry and strengthen our market positioning in the years to come
The country was under lockdown for the entire month of April 2020 and it certainly has impacted all sectors of the economy. We believe it is a temporary phase for our business and after the lockdown is over,we shall return to normalcy soon.
In a period of crisis like this,Radico Khaitan stands in solidarity with the nation and we are humbled to have been able to make our small contribution to the nation’s fight against Coronavirus In addition to cash contributions,we continue to supply sanitizer to various district administrations in UP and other government agencies We continue to evaluate the impact of this pandemic on our business and remain cautiously optimistic We have a resilient capital structure and robust brand portfolio to enable us to step towards a brighter and healthier future once this is over.
Commenting on the results and performance, Mr. Abhishek Khaitan, Managing Director said
“Radico Khaitan has continued the growth momentum during FY2020. Despite the on going economic crisis ,we are pleased to deliver IMFL volume growth of 12.5%,led by Prestige & Above volume growth of 15.2%. Net Revenue from Operations during FY2020 increased by 15.7% As you are aware that we currently have four millionaire brands. Atleast two more of our brands are approaching the milestone of annual sales of a million case in the near to midterm I am also proud to report that the 8PM family of brands has crossed volume of 10million cases during FY2020. The current COVID-19 crisis is unprecedented and at the same time there is a lot of uncertainty around the timing of recovery from this situation. Therefore it is even more difficult to ascertain its impact on the industry as a whole and our business.
We are adopting a deliberate and prudent approach to our strategy and it will have a similarring to those who h ave seen Radico Khaitan consolidate and grow holistically over the last decade As we move into FY2021,we will continue to take necessary steps to maintain our robust foundation and financial strength whilst at the sametime delivering differentiated consumer experience.We remain confident of our ability to deliver longterm value to all our stakeholders.”
