Unaudited financial results for the quarter ended 30 June 2021
57% sales growth with three-fold increase in EBITDA, resilient performance in a challenging quarter
First quarter performance highlights:
- Reported net sales increased 57% lapping weak prior year comparators. The second Covid-19 wave induced localised lockdowns impacted the sequential recovery momentum seen over the prior quarters. Off-trade remained resilient despite restrictions.
- Prestige & Above segment net sales grew 58%.
- Popular segment net sales grew 60% within which the priority states grew 50%.
- Gross margin was 44.6%, up 296bps, driven by stable input costs for the quarter and continued management focus on productivity and cost efficiencies.
- Reported EBITDA was Rs. 168 Crores, up 316% over prior year. EBITDA margin @ 10.4% for the quarter was subdued on account of operating de-leverage.
- Interest cost was Rs. 20 Crores, down 60% driven by debt reduction and lower interest rates.
- Exceptional item includes a one-off provision towards an additional demand in relation to a historical customer dispute.
- Tax includes a one-off reversal of 19.2 Crores
- Profit after tax was Rs. 69 Crores, up 132% and PAT margin was 4.3%
Ms Hina Nagarajan, CEO, commenting on the quarter ended 30 June 2021 said:
"In the midst of the severe Covid second wave that swept the country during the quarter, our top-most priority was the safety of our employees and associates while supporting the eco-system of customers, partners and communities. The Company and its parent company, Diageo plc, committed Rs. 10 crores and Rs. 35 crores respectively (cumulatively Rs. 45 crores) in this quarter to support India’s long term public healthcare infrastructure. The Company provided oxygen concentrators and other medical supplies and is in the process of creating mini hospitals in critical districts.
We have delivered a resilient performance on the back of our operational agility and the intrinsic strength of our portfolio as we managed through the challenges of localized and asynchronized state lockdowns. The Company was back to full operations as we exited the quarter.
Looking forward, with the drop in COVID positivity rates and steady increase in the vaccination coverage, we expect the recovery momentum to accelerate. We remain focused on stimulating demand through our renovation, innovation, and other category growth initiatives. The embedded discipline during the first two waves of the pandemic has enabled the Company to prepare for short-term disruptions and “Emerge Stronger” from the crisis.”