Sula Vineyards Ltd., a major wine producer, reported on April 11 that sales of its own brands exceeded 1 million cases in FY23.
Additionally, it stated in a sales statement for Q4 and FY23 given to the bourses after market hours that sales volumes in elite and premium wines exceeded the 5 lakh case threshold for the first time.
According to the corporation, “both for its own brands and the wine tourism business, the company has earned its best ever annual revenues.”
The stock was trading at Rs 384 on the NSE at 2.35 o’clock on April 12, up 10%. The stock has increased by more than 25% since it went public in December. Sula Vineyards reported its net revenue for the three months ending in March to have been Rs 104.3 crore from its own brands and Rs 12.4 crore from wine tourism, which includes accommodation revenue, sales of food and drink, merchandise, and any other ancillary services.
Net revenue from own brands was Rs 482.5 crore for the fiscal year 2022–2023 and Rs 45 crore from wine tourism.
“One of the most significant and fruitful years in Sula’s 23-year career has been FY23. More than 52% of our 1 million cases of wine are elite and premium wines, including our Sula Vineyards, RASA, and The Source brands. This shows the success of our premiumization strategy. Only 46% of that share existed in FY19 prior to the pandemic, “Rajeev Samant, the CEO of the business, said.
With a target price of Rs 475, global broking firm CLSA began covering Sula Vineyards in March. The company claims that Sula is well-positioned to benefit from the movement in worldwide consumer preferences towards the category of low-alcohol beverages, which includes beer and wine.
According to the report, “the company has the potential to invest in category expansion, which is vital for long-term success, with a high EBITDA margin of over 29 percent.”
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