Allied Blenders shares up 3% as company posts Q1 net profit of ₹11 crore; EBITDA grows 44%

Shares of the company reacted to the quarterly earnings and were trading 3% higher at ₹312.35 apiece on the NSE on Wednesday.

Allied Blenders’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter jumped 44% YoY to ₹76 crore. The EBITDA margins expanded to 10% compared to 6.5% in the corresponding period last year.

The company reported a decline in the income from operations for Q1FY25 due to delays in receivables from a key market since H2FY24. Consequently, the company’s volumes were impacted, and overall servicing needs. However, the company has seen growth in EBITDA and gross margins during the quarter due to savings in packing material costs along with a strong focus on state brand mix.

The company’s realisations saw an uptick of 3.1% YoY to ₹962 per case. Sales volume of the Prestige & Above category slipped 2.8% YoY to 2.7 million cases while the sales volume of the Mass Premium category declined 16.3% YoY to 4.6 million cases. The total sales volume was lower by 11.8% YoY at 7.3 million cases.

The company stated that it is aiming to strengthen its balance sheet and drive volume growth ahead of the industry. It is also aiming to expand in the high-margin luxury segment through its own brand & partnership models.

Alok Gupta, managing director of Allied Blenders and Distillers, said that the company faced servicing challenges in the short term but expects to sustain growth and create value for shareholders.

“With the successful IPO in July 2024 behind us, we are more confident in our ability to deliver sustained growth and enhance shareholder value creation,” he said.

Shares of the company have declined by nearly 2% since the beginning of the year.