Allied Blenders absorbs supply shocks as Q1 revenue rises 5.8%, premium push continues

Allied Blenders and Distillers (ABD) says its premiumisation strategy continues to strengthen even as global supply chain disruptions weighed on first quarter profitability, with the company expecting the recently implemented India-UK Free Trade Agreement (FTA) to improve margins and support its higher-end portfolio over the medium term. 

The maker of Officer's Choice, Sterling Reserve and ICONiQ White reported standalone income from operations of ₹975 crore for the quarter ended June 30, up 5.3% from ₹926 crore a year earlier. Standalone EBITDA rose 14.4% to ₹140 crore, while profit after tax increased 11.9% to ₹68 crore. 

On a consolidated basis, income from operations grew 5.8% to ₹984 crore. EBITDA remained largely flat at ₹120 crore against ₹119 crore a year ago, while net profit declined to ₹45 crore from ₹56 crore. The company attributed the muted profitability to planned investments in its super premium and luxury portfolio under ABD Maestro, higher advertising and promotion spends, wider distribution and temporary global supply chain disruptions. 

Excluding a ₹24 crore impact from supply chain disruptions, however, the company said like for like EBITDA would have stood at ₹144 crore, up 21.4%, while like for like PAT would have increased 13.6% to ₹63 crore. 

"Our Q1FY27 performance reflects the continued progress of ABD's transformation journey, with steady topline growth, a richer portfolio mix and disciplined execution across the business," said Amar Sinha, managing director of ABD.

"While global supply chain disruptions had a short-term impact during the quarter, the underlying business remains resilient. We are currently focused on investing in our people, strengthening our brands and accelerating our premiumisation agenda, while maintaining strong execution of our backward integration projects. The recently implemented India-UK FTA is margin accretive, while also supporting higher-end portfolio opportunities through improved sourcing flexibility," he said, adding that the company remains focused on delivering mid teens topline growth over the medium term. 

Premium brands drive growth

Premium spirits continued to outpace the broader portfolio during the quarter. ABD sold 9 million cases in Q1FY27, compared with 8.5 million a year earlier, translating into overall volume growth of 6.2%. The Prestige and Above category grew 10.7%, while the Mass Premium and Others segment expanded 2.3%. As a result, premium products accounted for 48.2% of volumes and 59.3% of portfolio value, up from 46.2% and 55.8%, respectively, a year ago. 

The company's fastest-growing premium brand, ICONiQ White, sold 3.1 million cases during the quarter, up 33.8% from 2.3 million cases a year earlier. ABD said the whisky has remained the world's fastest growing millionaire whisky brand for three consecutive calendar years and is now averaging more than one million cases every month, while also expanding into overseas markets. 

ABD also continued to expand its premium portfolio through ABD Maestro. Zoya Pink, introduced in April, is being rolled out across key Indian markets after its Maharashtra launch. Internationally, the company expanded its presence to 39 countries from 36 in the previous quarter, while its premium brands, including Arthaus Blended Malt Whisky, Zoya Gin, Woodburns Whisky, Rangeela Vodka, AODH Irish Whiskey and Yello Designer Whisky, widened their overseas footprint.