INDIA – Radico Khaitan Limited, a leading Indian manufacturer of Indian-made foreign liquor (IMFL), has reported a 24.4 percent year-on-year rise in net profit for the second quarter of FY2025, driven by robust demand for its premium alcohol products.
For the quarter ending September 30, 2024, the company’s consolidated net profit reached Rs 806.6 million (US$9.6M), reflecting a strong market response to Radico Khaitan’s premium offerings.
Radico Khaitan’s revenue from operations rose 9.5 percent, reaching Rs 3,907 crore, compared to Rs 3,569 crore in the same period last year.
The company credited its growth to ongoing premiumisation in its IMFL business and a more stable cost environment for raw materials and packaging.
Despite inflationary pressures on foodgrain prices impacting gross margins on an annual basis, the company noted a 258 basis point improvement in gross margin sequentially, supported by premiumisation and stable input costs.
Chairman and Managing Director Lalit Khaitan highlighted Radico Khaitan’s strong operational performance in the second quarter, noting a 12.6 percent year-on-year growth in the Prestige & Above category, which comprises the company’s premium offerings.
“We have achieved double-digit premium volume growth for 12 consecutive quarters,” Khaitan stated, adding that EBITDA margins also saw sequential improvement.
The quarter saw a decrease of 2.5 percent in Radico Khaitan’s overall IMFL volume, amounting to 6.78 million cases.
However, the Prestige & Above segment reported a solid 12.6 percent growth, reaching 3.20 million cases, underscoring the company’s strategy to drive growth through premiumisation.
The company anticipates achieving 20 percent revenue growth by the fiscal year’s close in March 2025, a target that underscores its dedication to expanding market share through strategic marketing investments and the launch of high-end products.
In September, Radico Khaitan introduced two limited-edition additions to its Rampur Jugalbandi single malt whisky line, Jugalbandi #5 and Jugalbandi #6.
These cask-strength whiskies, crafted at Rampur Distillery in the Himalayan foothills, showcase unique flavors.
Jugalbandi #5 matures in American Bourbon barrels before aging in Tokaji wine casks, while Jugalbandi #6, aged in Madeira wine casks, features notes of caramelized pineapple and apricot.
Radico Khaitan’s diverse portfolio, which includes brands like Jaisalmer Indian Craft Gin, Morpheus Brandy, and Magic Moments Vodka, continues to bolster its presence in India’s alcoholic beverage market, aligning with the company’s premiumisation strategy and long-term growth objectives.
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