INDIA – Sula Vineyards, India’s largest winemaker, has announced a notable increase in its quarterly profit, driven by strong sales of its budget-friendly wines.
For the first quarter ended June 30, the company reported a 7 percent rise in consolidated net profit to Rs 146.3 million (US$1.7 million).
Sula’s revenue surged over 10% year-on-year to Rs 1.28 billion (US$15.24M), marking the highest-ever first-quarter revenue in the company’s history.
This growth was primarily fueled by a 24.4 percent increase in sales from its more affordable wine segment. The quarter also marked Sula’s second consecutive period of revenue growth.
Rajeev Samant, CEO of Sula Vineyards, expressed satisfaction with the results despite facing several challenges.
“We are pleased to report our highest-ever first quarter revenue, EBITDA, and PAT in Q1FY25. This is despite significant headwinds including restrictions on alcobev movement and several dry days, along with the scorching heatwave, which impacted trade offtake and consumer demand during the quarter,” Samant said.
The company’s premium and elite wine segment also saw a 21 percent increase in revenue year-on-year, contributing to 71 percent of its total revenue.
However, Sula did not disclose specific sales volumes for its cheaper wines or revenue figures for its premium segment.
Despite the overall positive performance, the company’s wine tourism segment experienced a 2.3 percent decline in revenue due to reduced visitor numbers caused by the heatwaves. Wine sales represent about 88 percent of Sula’s net revenue.
Approximately 70 percent of Sula’s sales are concentrated in its key markets of Maharashtra and Karnataka.
The company is also expanding its footprint into other states such as Telangana and Rajasthan, where it has observed increasing sales.
One of the strategic moves implemented in Q1 was the introduction of a third-party sales model for its economy and popular brands in Maharashtra, which has shown promising results.
Sula Vineyards, a trailblazer in the Indian wine industry, has garnered international acclaim for its wines.
Its flagship RASA Cabernet Sauvignon 2022 won a Gold Medal at the Global Cabernet Sauvignon Masters 2024.
The company, which opened India’s first winery tasting room in 2005 and its first vineyard resort in 2010, continues to lead with initiatives such as joining the International Wineries for Climate Action (IWCA), aiming for net-zero emissions by 2050.
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