Q2 2025 Associated Alcohols & Breweries Ltd Earnings Call Transcript
Key Points
- Associated Alcohols & Breweries Ltd (BOM:507526) reported a 50% increase in net revenue for Q2 FY 2025, reaching 255 crores compared to 170 crores in the same period last year.
- The company's premiumization strategy is yielding strong results, with flagship products like Hillfort whiskey and Nicobar gin receiving positive market responses.
- Nicobar gin earned a bronze medal at the San Francisco World Spirits Competition, enhancing its market standing.
- The company maintained a healthy gross margin of 40% despite rising input costs, thanks to operational efficiencies and cost management.
- Plans to enter new markets such as Maharashtra, Goa, and Karnataka are expected to drive further growth, particularly in the premium spirits segment.
- Rising input costs, particularly for grains like rice and maize, have put pressure on margins.
- The company's ethanol segment reported lower margins this quarter due to high raw material prices.
- There is a significant increase in other expenses, including freight and sales promotion costs, impacting profitability.
- The company faces challenges in entering new markets due to lengthy excise registration processes.
- Margins in the ethanol business remain low, with expectations of only 7-8% EBITDA in the long term.
Ladies and gentlemen, good day. And welcome to Associated Alcohols and Breweries Limited Q2 and H one FY 2025 earnings conference call hosted by go to advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instruction). Please note that this conference is being recorded. I now hand the conference over to MS Priya Sen from go the advisors. Thank you and over to Ms. Sen.
Thank you, Renji. Good afternoon, everybody and welcome to Associated alcohols and beauties limited earnings conference call to discuss the Q2 and H One FY 2025 results we have on the call, Mr. Anshuman Kedia whole time director and CEO Mr. Tushar Bhandari whole time director and Mr. Ankit Agrawal Group's Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr.
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