Sula Vineyards Ltd. estimated revenue growth of 17% in the April to June quarter, driven by higher offtake of its premium and elite wines.
The country's largest wine producer recorded its highest-ever first quarter net revenue overall as well as for own brands, and the wine tourism business, according to its quarterly sales update filed with the exchanges on Friday.
On a provisional basis, the winemaker said it witnessed 24% growth for its own brands to Rs 103.5 crore over the previous year, led by the premium and elite category. The wine tourism business grew 11% to Rs 11.4 crore.
The elite and premium brands, priced at Rs 1,000 and above, have grown by an "impressive" 30% during the quarter, according to the company.
Premiumisation is a key pillar of Sula's strategy.
The volume share of "elite" and "premium" wines within its own brands portfolio increased from 46% in FY21 to 52% in FY23. In line with its premiumisation focus, the company sold off its lowest priced Heritage brand, which was available only in Karnataka, during the April-June quarter.
"Our focus on premiumisation continues to pay off with our elite and premium wines leading the pack in terms of growth," Chief Executive Officer Rajeev Samant said. "We are particularly pleased with the 70% jump in visitor numbers to our Domaine Sula winery, just outside Bengaluru."
However, the winemaker has also seen two top leaders quit this year. Its Chief Financial Officer Bittu Varghese had resigned on June 9. The company said it has identified a new CFO, without naming the person as the decision awaits statutory approvals. The person will come on board in August.
A few days ago, its Chief Operating Officer Chaitanya Rathi had also resigned. He will be in the company till the end of September.
Rathi will be replaced by Sula's Chief Winemaker Karan Vasani, who has been a key member of its leadership team and looks at the company's key operations including winemaking, winery operations and viticulture.
Prior to joining Sula, Vasani was an analyst at financial services firm Crisil.
On Friday, shares of Sula Vineyards closed 0.92% lower on the BSE as compared with a 0.85% decline in the Nifty50. The sales update was released after market hours.
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