Sula Vineyards Limited, India’s leading wine producer, reported a record net revenue of INR 271.7 crore for the first half of FY25, marking a 3.7% year-over-year (YoY) increase.
Sula’s Elite and Premium segment drives 7% surge in Q2
The growth was driven by the Elite and Premium segment, which saw a 7% increase in Q2, particularly in states like Telangana, Madhya Pradesh, and West Bengal.
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Meanwhile, Rajeev Samant, CEO, stated, “We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2 FY25 was a subdued quarter, due to a slowdown in consumer discretionary demand, particularly in urban areas where 90 percent of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi.”
Reportedly, The Elite and Premium segment now accounts for 78.5% of Q2 revenue, up from 73.5% last year. Wine tourism also saw growth, with a 9% increase in per-head spending and a 74% occupancy rate.
Sula’s The Source, RASA, and Dindori report double-digit growth
Furthermore, Sula’s iconic brands, The Source, RASA, and Dindori, recorded double-digit growth in the Elite and Premium range. The company is observing promising growth in non-core regions, with double-digit increases in states like Telangana, Himachal Pradesh, and West Bengal.
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Looking ahead, Sula anticipates a positive impact from the festive season, driven by factors like the re-opening of Andhra Pradesh, introduction of new labels in the CSD market, and the return of the SulaFest event. Samant said, “We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us.”
The company’s next earnings call is scheduled for November 13, 2024, where CEO Rajeev Samant and CFO Abhishek Kapoor will discuss further insights and developments.
