Indian liquor maker Radico Khaitan's exports to the Gulf market are recovering after shipments stalled amid regional conflict, with dispatches gradually resuming since late April, a top executive said.
The disruption hit consumer spending and duty-free channels across the Gulf, an important market for premium spirits, thanks to a large and wealthy expatriate community.
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The maker of Rampur whisky and Jaisalmer gin derives 5% to 6% of sales volumes and 9% to 10% of revenue from exports, of which it does not provide a regional split.
"We could not ship out anything in March and (most of) April. But the good thing is, now slowly and steadily, the shipments are starting back into the area," Sanjeev Banga, president of Radico's international business, said in an interview on Wednesday, referring to exports to the Gulf region in the Middle East.
Radico shares extended gains to trade more than 3% higher at 3,463 rupees after Reuters reported the resumption of Gulf exports, citing Banga. The shares were up about 2% this year through last close, compared to the benchmark Nifty 50 index's nearly 7% decline.
Growth in Africa, Asia-Pacific and airport retail made up for the Middle East slowdown, lifting export sales to a record in the year ended March 31, he said.
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Net revenue for the year expanded by a quarter to 60.5 billion rupees ($637.58 million), while EBITDA margin expanded to 16.8% from 13.8%, driven by demand for "prestige and above" brands including Royal Ranthambore and Sangam.
Managing Director Abhishek Khaitan expects margins to expand by 120 to 125 basis points and revenue to grow over 15% in the fiscal year that started in April, even as higher glass and freight costs persist.
He said premiumisation continues as consumers shift to higher-end products.
"The regular range is not growing that much... People are drinking less, but they are drinking expensive and refined products," Khaitan said.
($1 = 94.8900 Indian rupees)
The disruption hit consumer spending and duty-free channels across the Gulf, an important market for premium spirits, thanks to a large and wealthy expatriate community.
Also read: United Breweries says employee mistakenly shared draft financial results, reports disclosure
The maker of Rampur whisky and Jaisalmer gin derives 5% to 6% of sales volumes and 9% to 10% of revenue from exports, of which it does not provide a regional split.
"We could not ship out anything in March and (most of) April. But the good thing is, now slowly and steadily, the shipments are starting back into the area," Sanjeev Banga, president of Radico's international business, said in an interview on Wednesday, referring to exports to the Gulf region in the Middle East.
Radico shares extended gains to trade more than 3% higher at 3,463 rupees after Reuters reported the resumption of Gulf exports, citing Banga. The shares were up about 2% this year through last close, compared to the benchmark Nifty 50 index's nearly 7% decline.
Growth in Africa, Asia-Pacific and airport retail made up for the Middle East slowdown, lifting export sales to a record in the year ended March 31, he said.
Also read: ‘We are not going to do charity’: United Breweries plans to exit unprofitable states amid cost surge, pricing curbs
Net revenue for the year expanded by a quarter to 60.5 billion rupees ($637.58 million), while EBITDA margin expanded to 16.8% from 13.8%, driven by demand for "prestige and above" brands including Royal Ranthambore and Sangam.
Managing Director Abhishek Khaitan expects margins to expand by 120 to 125 basis points and revenue to grow over 15% in the fiscal year that started in April, even as higher glass and freight costs persist.
He said premiumisation continues as consumers shift to higher-end products.
"The regular range is not growing that much... People are drinking less, but they are drinking expensive and refined products," Khaitan said.
($1 = 94.8900 Indian rupees)
