INDIA: Tilaknagar Industries Q1 profits boosted by new launches
- Q1 net profits jump 58% to INR173m
- Sales up 17.4% to INR1.8bn
- Operating profits up 25% to INR205m
- Q1 volumes up 28%
Tilaknagar Industries has benefited from new product launches in its first quarter after reporting a jump in profits and sales.
The Indian Made Foreign Liquor producer (IMFL) said today (7 August) that post-tax profits in the three months to the end of June jumped by 58% to INR173m, boosted by a VAT refund of INR123.7m.
Sales in the period rose by 17.4% to INR1.8bn, while pre-tax profits were up 25% to INR205m. Volumes in Q1 grew by 28%.
The company, whose 40-odd brands include Mansion House, Courrier Napoleon and Madira, pointed to a “healthy expansion” in all of Southern India's key markets and “sustained momentum” in expanding its footprint in the east of the country.
Sales by value were boosted by “higher penetration in existing and new markets along with benefits of new launches”, the company said. New initiatives included: Mansion House Silk - a premium brandy launched in Kerala; and Courrier Napoleon Green premium brandy extended to new markets such as Odisha.
Amit Dahanukar, Tilaknagar Industries' chairman & MD, said: “Our volumes witnessed a noteworthy growth, ahead of sector performance. This reinstates the success of our core approach: to add scale by leveraging the strengths of brands and distribution systems.”
He also noted that the groups exports and CSD brands are growing and “contributing to overall progress”.
Looking ahead, Dahanukar said it will invest in its sales and marketing, distribution network and expand its “brand footprint”, while brandy and rum will remain the “prime focus”.
But he warned that a hike in excises duties in Karnataka and new minimum wage laws in Kerala will have an impact.
Meanwhile, local reports, quoting unnamed sources, today suggested that Suntory and Pernod Ricard are among companies in talks to buy a 15-20% stake in Tilaknagar.
Shares in the Indian group were today trading up 16% at INR55.10.
The third part of this month's management briefing, in which Euromonitor considers the year ahead for the global drinks industry, sees Jeremy Cunnington and Spiros Malandrakis look at the spirits cate...
Just before January is out, Ian Buxton is here for his first comment piece of 2014, and he's keen to consider what the fist big M&A transacion of the year will mean in the Scotch whisky industry....
- Can craft breweries compete in lager arena?
- Wine consumption and its health effects
- The Coca-Cola Co's Q2/H1 2016 results - Preview
- A Wild Geese, Pernod Ricard conspiracy theory?
- Remy Cointreau's Q1 performance by brand, region
- AB InBev seeks single buyer for European beers
- Diageo names new TR head as Doug Bagley exits
- Diageo appoints new Smirnoff head
- Gruppo Campari trials Negroni pre-mix
- Scotch drop hits Edrington as FY profits fall
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends