Highlights
Nao Spirits Reports Significant Growth and Controlled Losses in Fiscal Year 2024
Nao Spirits, the parent company behind the gin brand Greater Than, has announced an impressive growth rate, more than doubling its performance in the fiscal year ending March 2024. The Goa-based firm effectively managed to keep its losses to a minimum during this period.
According to the annual financial statements sourced from the Registrar of Companies, Nao Spirits’ revenue from operations surged by 145%, reaching Rs 81 crore in FY24, compared to Rs 33 crore in FY23.
Company Overview
Founded in 2015 by Anand Virmani, Abhinav Rajput, Aparajita Ninan, and Vaibhav Singh, Nao Spirits is an Indian craft distillery recognised for its production of premium craft gins, including Greater Than and Hapusa. The income from these gin sales represents the sole revenue stream for Nao Spirits.
While most of Nao Spirits’ revenue is generated in India, export earnings contributed Rs 2 crore in FY24.
Cost Highlights
- The largest expense for the liquor maker was excise duty, which accounted for 48% of its total costs, nearly half of its revenue.
- This excise duty expense escalated 7 times to Rs 43 crore in FY24 from Rs 6 crore in FY23.
- Costs related to procurement and employee benefits increased by 42% and 33%, amounting to Rs 17 crore and Rs 8 crore respectively.
- The company allocated Rs 17 crore for advertising and promotional activities.
- Total costs in FY24 reached Rs 96 crore, an increase from Rs 50 crore in FY23.
For a detailed breakdown of costs, refer to various sources.
Financial Performance
The combination of impressive growth and controlled expenditure allowed Nao Spirits to reduce its losses by 11%, bringing them down to Rs 14.6 crore in FY24, compared to Rs 16.4 crore in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margin improved to -55% and -13.64% respectively, reflecting a better expense-to-revenue ratio of Rs 1.19. During FY24, Nao Spirits reported total current assets valued at Rs 48.7 crore.
Funding and Future Prospects
Nao Spirits has successfully secured a cumulative total of Rs 54 crore ($6.5 million) through five funding rounds, with their most recent Series B funding round taking place on March 12, 2022.
The Greater Than gin brand has gained a solid reputation within the Indian market, boasting extensive availability nationwide. The next 2–3 years are anticipated to be transformative for Nao Spirits, with potential new product launches and innovations aimed at capturing the interest of gin enthusiasts. For example, in April 2024, the company unveiled ‘Punk Gin,’ a limited-edition pink gin crafted with fresh strawberries and hibiscus.