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The Indian winemaker Sula Vineyards recorded a fall of almost 87% of his quarterly profit on Wednesday due to the softening of the demand for urban consumers attentive to the budget for his most convenient wines.The inhabitants of the cities have stretched for slow salary growth, they have tightened the belts for several quarters, by pressing sales at the companies aimed at consumption, from the producer of Soapustan Hindustan Unilever to the producer of Noodles Yippee ITC.
The consolidated net profit in Sula, which attracts most of its revenues from urban areas, sank to 19.4 million rupees ($ 221,272) in the first quarter closed to 30 June, from 146.3 million rupees the previous year.
The business of the brands of Sula – including Dindori, the source and the homonymous wines and constitute almost 90% of the revenue, recorded a drop of 11% of the revenue in the quarter. “The growth of the brands was deactivated due to the continuous softness of the urban demand,” said CEO Rajeev Samant in a note.
The Division of Sula’s wine tourism has recorded a growth of 22% and a record occupation, benefiting from wealthy consumers who spray themselves in its resorts and tasting rooms while looking for new experiences.
However, this was not enough to cancel the decline in the company’s main wine sector.
Total revenues decreased by 8% to 1.18 billion rupees.
The expenses, on the other hand, increased by 6%.
But SULA could examine better quarters as producers of consumer goods, including ITC and Hindustan Unilever, they say that they expect to facilitate inflation, the lowest interest rates and income tax cuts to reverse a slowdown of months.
