Sula Vineyards gains 5% as its own brand sales volumes cross 1 million cases in FY23

Leading wine producer Sula Vineyards Ltd on April 11 said sales volume from its own brands crossed 1 million cases in FY23.

Besides, sales volumes in elite & premium wines went past the 5 lakh cases mark for the first time, it said in a sales update for Q4 & FY23 submitted to the bourses after market hours.

“The company has recorded its highest ever annual revenues both for its own brands as well as the wine tourism business,” the company said.

At 9:45 am on April 12, the stock was quoting at Rs 370.20 on the NSE, higher by 5 percent. Ever since its listing in December, the stock has gained a little over 11 percent.

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On a provisional basis, Sula Vineyards said its net revenue for the March quarter was at Rs 104.3 crore from its own brands and Rs 12.4 crore from wine tourism, which represents room revenue, sale of food & beverages, merchandise, and all other ancillary services.

For the financial year 2022-23, net revenue from own brands was at Rs 482.5 crore and Rs 45 crore from wine tourism.

“FY23 has been one of the most momentous and successful years in Sula’s 23-year journey. Our focus on premiumisation is reaping rich dividends – more than 52 percent of 1 million cases are our elite & premium wines, including our Sula Vineyards, RASA & The Source brands. That share was just 46 percent in pre-pandemic FY19,” the company’s CEO Rajeev Samant said.

In March, foreign broking firm CLSA had initiated coverage on Sula Vineyards with a target price of Rs 475. According to the firm, Sula is well-placed to take advantage of the global consumer shift towards the low-alcohol beverage segment, which includes beer and wine.

“With a healthy EBITDA margin of over 29 percent, the company has the ability to invest in category development, which is crucial for long-term growth,” it said.

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