Unaudited financial results for the first half and second quarter ended 30 September 2024

23 Oct 2024|Press release

Unaudited financial results for the first half and second quarter ended 30 September 2024

Bengaluru, India - October 23, 2024: United Spirits Ltd., one of the leading beverage alcohol companies in India, reported its unaudited consolidated & standalone results for the first half and second quarter ended 30 September 2024.

Key highlights for the quarter:

Consolidated

  • Net sales value (NSV) at INR2,844 Cr.; EBITDA at INR502 Cr.
  • Overall NSV registered a marginal decline of 0.8% year-on-year, while EBITDA grew 7.4% year-on-year

Standalone

  • Net sales value (NSV) at INR2,843 Cr., with Prestige & Above saliency of 89%
  • Total NSV witnessed a marginal decline of 0.8% over previous year, Prestige & Above segment NSV was broadly flat (0.3% growth year-on-year).
  • EBITDA at INR507 Cr., a growth of 7.9% y-o-y, with a margin of 17.8%

Ms. Hina Nagarajan, CEO & Managing Director, commenting on the Q2FY25 performance, said:

“It’s a muted quarter amidst a softer than expected demand environment. We remain buoyant entering the festive season on the back of structural tailwinds including the reopening of the business in the state of Andhra Pradesh after a near 5-year gap. This reinforces our faith in the overall health and long-term fundamentals of the spirits industry & business in India. Our key focus remains on executional excellence to deliver sustained profitable growth, while maintaining the long-term competitiveness of our portfolio.”

Q2FY25 performance highlights:

Consolidated:

  • Consolidated net sales at INR2,844 Cr., witnessed a marginal decline of 0.8% year on year.
  • Consolidated EBITDA was at INR502 Cr., a growth of 7.4% year on year.
  • Q2FY25 consolidated Profit after tax was at INR341 Cr.

Standalone:

  • Net sales at INR2,843 Cr., registered a marginal decline of 0.8% versus prior year same quarter driven by the normalisation of higher-than-expected growth in the first quarter, higher base last year due to festive inventory build-up and overall, relatively muted demand environment. Within the above, Prestige & Above segment NSV was broadly flat (0.3% growth year-on-year).
  • Net sales for the Popular segment fell 6.9% y-o-y.
  • Gross margin was 45.2%, up 178 bps versus last year on the back of headline pricing, continued revenue growth management and productivity initiatives off-setting inflation in the overall commodity basket.
  • A&P re-investment rate was 9.0% of sales reflecting the healthy investment ahead of the festive season.
  • EBITDA at INR507 Cr., an increase of 7.9% over same period last year.
  • EBITDA margin was 17.8%, up 142 bps versus last year. This was largely driven by gross margin expansion and normalization in overheads, lapping a prior year high base, partly off-set by the higher A&P and staff costs.
  • Interest cost was at INR25 Cr. and is on account of customary non-debt related expenses.
  • Profit after tax was INR335 Cr. with net profit margin at 11.8%.

H1FY25 performance highlights:

Consolidated:

  • Consolidated net sales for H1FY25 at INR5,605 Cr., up 1.3% year on year.
  • Consolidated EBITDA for H1FY25 at INR1,215 Cr., a growth of 2.9% over previous year.
  • H1FY25 consolidated Profit after tax at IN826 Cr.

Standalone:

  • Net sales at INR5,195 Cr. increased 3.1% year on year driven by our innovation / renovation offerings. Within the above, Prestige & Above segment grew 4.4%.
  • Net sales for the Popular segment declined 4.9%.
  • Gross margin was 44.9%, up 137 bps versus last year, driven by a combination of headline pricing, revenue growth management initiatives and continued productivity offsetting commodity inflation.
  • A&P re-investment rate was 8.3% of sales, largely reflecting the low seasonality of the April to June quarter and ramped up investment behind the brands in the July – September quarter.
  • EBITDA at INR965 Cr. is an increase of 12.8% over the previous year. EBITDA margin at 18.6%, up 160 bps versus last year. This was driven by gross margin expansion and continued productivity across the value chain.
  • Interest cost in H1FY25 was at INR47 Cr. Excluding the one-off reversal benefit of INR15 Cr. in Q1FY24, interest cost in H1FY24 was at INR46 Cr. Interest cost is on account of customary non-debt related expenses.
  • Profit after tax was INR634 Cr. with net profit margin at 12.2%.

About Diageo India

Diageo India is among India’s leading beverage alcohol (alcobev) companies with an outstanding portfolio of premium brands. A subsidiary of Diageo Plc., it is listed in India on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as United Spirits Limited (USL).

Headquartered in Bengaluru, Diageo India has one of the largest manufacturing footprints in alcobev with 36 facilities across India. It manufactures, sells and distributes Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell’s No1, Smirnoff, Ketel One, Tanqueray, Captain Morgan and Godawan, an artisanal single malt whisky from India, bringing together global expertise and local pride to deliver innovative, world-class products and experiences to consumers. With a strong focus on driving a positive impact on society, Diageo India has been working on collective action to improve livelihoods, championing Grain to Glass sustainability, responsible consumption and nurturing the alcobev ecosystem, to contribute to India’s growth agenda.
For more information about Diageo India, our people, our brands, and our performance, visit us at www.diageoindia.com. Visit Diageo’s global responsible drinking resource, http://www.DRINKiQ.com, for information, initiatives, and ways to share best practices.
Celebrating life, every day, everywhere.

Cautionary statement concerning forward-looking statements

This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of changes in interest or exchange rates, the availability or cost of financing to United Spirits Limited (“USL”), anticipated cost savings or synergies, expected investments, the completion of USL’s strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, outcomes of litigation, anticipated deficit reductions in relation to pension schemes and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward- looking statements, including factors that are outside USL’s control. USL neither intends, nor assumes any obligation, to update or revise these forward-looking statements in the light of any developments which may differ from those anticipated.

Investor enquiries to:

Shweta Arora

[email protected]

Media enquiries to:

Zarin Darashaw

[email protected]


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Contacts

For more information, contact:

Investor enquiries to:

Shweta Arora
[email protected]

Media enquiries to:

Zarin Darashaw
[email protected]