Radico Khaitan Announces Unaudited results for Q1FY12

Performance Highlights for the Q1FY12

• Net Sales of Q1 of FY 2011-12 at Rs.375.9 crore against sales of Rs.326.1 crore over corresponding quarter in the previous year, thereby showing a growth of 15.3%. (Net Sales includes Sale from Tie-up units net of Royalty income)
• The company achieved a Net Profit of Rs.20.7 crore compared to Rs. 16.1 crore in the corresponding quarter of previous year, thereby showing a growth of 29.2%.
• EBIDTA at Rs.42.8 crore compared to Rs. 34.1 crore in the corresponding quarter of previous year, thereby showing a growth of 25.6%

Radico Khaitan Limited, one of the largest spirits companies in India, announces its Unaudited First Quarter Results for Fiscal 2012.

Commenting on the results and performance, Dr. Lalit Khaitan, Chairman and Managing Director of Radico Khaitan said, “Radico Khaitan had a solid start to the year with robust growth and profitability. Our focus on brand building and premiumization is demonstrated by strong volume growth in premium brands of over 22%. We intend to continue to build consumer awareness for our premium brands through marketing campaigns and increased distribution. We expect our premium brand portfolio to contribute significantly in our Net Sales in the current year.”

Commenting on the results, Mr. Abhishek Khaitan, Managing Director, said, “Radico Khaitan’s focus on premiumization is expected to result in significant growth in Magic Moments, After Dark and Morpheus in the coming quarters. The Company plans to launch a nationwide marketing campaign for After Dark, which is expected to increase brand recognition and result in further traction in volumes. The Company is identifying additional marketing and distribution tie-ups with international companies for other spirit categories, including vodka. The Company is also focused on increasing distribution through on-premise sales, which will enhance brand awareness”.

He further added “Q1 FY2012 Net Sales increased 15.3% compared to the prior year. This was driven primarily by robust sales volume growth in the mainline brands as well as other brands. In particular, volumes benefited significantly from robust growth in premium brands – Magic Moments and Morpheus. Radico witnessed significant Quarter-over-Quarter volume growth of 22.3% across its mainline brands and in particular, 20.6% volume growth in Magic Moments Vodka. Our other premium brand, Morpheus, which was Introduced in Q1 of fiscal 2009, grew by 40% and continues to receive highly favorable reviews by customers. The volumes of Radico’s flagship brand 8PM continued to grow by 17.2% in Q1 of fiscal 2012, compared to the prior year”.

After Dark, the premium whisky brand which was test marketed in 2010, is being rolled out nationwide during this quarter and is receiving a favourable response from all regions.

Recently the company has redeemed all of its remaining $50 million, 3.5% Foreign Currency Convertible Bonds (“FCCB”) that were issued in July and August 2006. The total redemption of $44.22 million (inclusive of a redemption premium of $10.31 million) was funded using proceeds from a new low cost 7-year maturity External Commercial Borrowing (“ECB”).