back to top
Friday, June 21, 2024
34 C
Lucknow
HomeAlco-BevBira 91’s scale nears Rs 720 Cr in FY22,...

Bira 91’s scale nears Rs 720 Cr in FY22, losses spike 58%

The pandemic had squeezed the scale of alcohol makers in FY21 and beer manufacturers were hit particularly hard as Covid19 was at its peak during summer. Indian craft beer maker Bira 91 was no exception and its scale shrank 10% during FY21 but the firm has bounced back smartly in FY22.

Bira 91 scale (gross revenue) surged 66.8% to Rs 719 crore in FY22 from Rs 431 in the previous fiscal year (FY21), as per the company’s annual financial statements with the Registrar of Companies (RoC).

The sale of beer accounted for 99.3% of Bira 91’s total revenue which increased 66.4% to Rs 714 crore in FY22 from Rs 429 crore in FY21. It also made around Rs 5 crore from non-beer items and scrap. It’s worth noting that Bira 91 had also entered into non-alcoholic beverages in the last quarter of FY21 and it looks like the firm is not focusing on this segment anymore.

Bira91

Significantly, Bira 91’s operating revenue also includes the excise duty received from customers. The company’s earning from interest of fixed deposits shrank 36.7% to Rs 7.6 crore in the last fiscal year pushing the total revenue to Rs 726 crore.

Moving over to the cost side, excise duty on the sale of beers was the largest cost center for the company, forming over 29% of the overall cost which grew 32.4% to Rs 327 crore in FY22. Cost of materials accounted for 20.6% of the overall cost which climbed 3.6X to Rs 232 crore in FY22.

Bira91

Advertising costs shot up 6.6X to Rs 100 crore in FY22 while the employee benefit expenses increased 34.3% to Rs 94 crore. Bira 91 added another Rs 46 crore on transportation costs which pushed the total expenditure by 61.7% to Rs 1,122 crore in FY22 from Rs 694 crore in FY21.

With a 62% spike in expenditure, Bira 91’s losses increased 57.8% to Rs 396 crore in FY22. On a unit level, the company spent Rs 1.56 to earn a rupee.

Bira91

For Bira 91, FY23 also promises to be eventful, with the firm closing in on alcobev chain Beer Cafe in an all stock deal. That indicates a further focus on its beer business and the beginning of what could possibly be the growth formula for the next two to three years perhaps. In a business that can be frustrating at a regulatory and policy level, the combining of strengths with an established chain could herald  exciting times for the firm by FY24 end.

The above news was originally posted on news.google.com

Aabkari Times Editorial Teamhttps://aabkaritimes.com
Aabkari Times is a monthly news magazine on Liquor, Excise and Alcohol allied industry; being published since 2009 by the expertise of retired excise dept. associates and alco-bev industry professionals as our editorial team. Our magazine contains different new alco-bev strategic and new brand launch articles as well as news on recent govt. policies, trends on alcohol industry and other important data relevant to the distilleries and industry at the mass.

- Advertisement -

Global Insights, Indian Excise News, Industry Tips & Strategies

spot_img

- Advertisement -

-Advertisement-

You may be interested in

   

Popular all-time

More

    Teetotaller-Turned-Liquor Baron Lalit Khaitan Is India’s Newest Billionaire

    India is one of the world’s fastest-growing markets for liquor and cashing in on that trend of rising consumption is Lalit Khaitan, the country’s...

    Som Distilleries and Breweries Ltd (SDBL) Expands Beer Production Capacity at Karnataka plant

    Som Distilleries and Breweries Ltd (SDBL) has received approval from the Excise Department of Karnataka for the proposed expansion of the beer capacity at...

    Pernod Ricard bets India will bottoms up to the top

    Pernod Ricard, the maker of Chivas Regal, Glenlivet and Absolut, said it expects India to outpace the US to become its largest market globally,...

    FAQs on Gujarat’s GIFT City Liquor Regulations as Gujarat’s Prohibition Department Responds to Queries

    In response to the numerous queries from Gujarat residents, the state's department of prohibition and excise has released a set of 'frequently asked questions'...