Audited financial results for the quarter and financial year ended 31 March 2023

18 May 2023

Bengaluru, India - May 18, 2023: United Spirits Ltd., India’s leading beverage alcohol company, reported its audited standalone results for the fourth quarter and financial year ended 31 March 2023.

Key Highlights for the quarter:

  • Reported net sales value (NSV) at INR 2,494 Cr, with P&A saliency of 87%

  • Like for Like (LFL) NSV grew 15.6% with P&A NSV growth of 23.2%

  • Reported EBITDA at INR338 Cr. with EBITDA margin of 13.6%

Ms. Hina Nagarajan, CEO & Managing Director, commenting on the FY23 performance, said:

“We have delivered a strong year once again with robust top-line growth & resilient operating margins in an extremely volatile and inflationary environment. As an organization, we have exhibited tenacity and focus amidst macro-economic headwinds and regulatory challenges.

I am pleased with the growth momentum of our Innovation and renovation offerings. The stepped-up contribution in growth from the upper and mid prestige segments lend credence to our portfolio reshape strategy. This comes on the back of the successful closure of the slump sale and franchising of the strategically reviewed popular portfolio during the year. The supply chain agility programme, announced last quarter, is progressing well, in line with our overall strategy.

I am delighted to share a few more achievements from the last quarter. Our Alwar distillery in Rajasthan is Asia’s first spirits distillery to be awarded the prestigious Alliance for Water Stewardship (AWS) certification. Our 100% subsidiary, Royal Challengers Sports Private Limited, has won the bid to own and run the Women Premiere League team for Bangalore. This is yet another step in taking forward our narrative of inclusion and diversity and is aligned to our purpose of celebration.

Looking ahead, our core focus remains on continuing the growth momentum, while being more agile as an organisation, with simplified supply chain & legal entity footprint. We continue to remain committed to our consumer-focused future-back strategy, to consistently deliver value to all our stakeholders.”

(The scheme for the Pioneer Distilleries Limited merger came into operation on 30th Dec’ 2022 but is effective 1st April’2021. All current & previous period comparators include the impact of the merger. All accounts referred as ‘Rebased’ are Reinstated for PDL merger as well as adjusted for slump sale and franchising of the strategically reviewed popular portfolio for a like for like comparison.)

FY23 performance highlights:

  •  Rebased net sales registered a growth of 19.5% & underlying NSV grew 20.1% (excluding the one-off Bulk Scotch sale impact from prior year comparator) on the back of strong premiumisation trend, continued momentum in the off-trade, on premise recovery and sustained home consumption trends. Within the above, Prestige & Above segment grew 22.8%.

  • Rebased net sales for the Popular segment was up 0.9% compared to same period last year.

  • Gross margin at 42.1%, down 322 bps versus last year, weighed down by commodity inflation impacting Glass & ENA, partly offset by favourable mix and ramped up pricing and productivity.

  • EBITDA was at INR1,305 Cr., 4.0% increase versus last year. EBITDA margin at 13.5% is down 201 bps, primarily due to gross margin contraction offset by additional value chain productivity & growth leverage.

  • Interest cost at INR104 Cr. is up 18% primarily on account of the customary non-debt related items, reassessed impact of an old tax litigation matter, partly offset by the savings driven due retirement of debt of the merged entity.

  • Exceptional income of INR171 Cr. primarily consists of gain from slump sale of strategically reviewed popular portfolio offset by charges related to supply agility program & legal entity closure expenses.

Q4FY23 performance highlights:

  • Rebased NSV increased 15.6% reflecting a strong quarter driven by continued momentum in the off-trade and on-trade along with normalisation of BIO Supplies.

  • Prestige & Above segment net sales grew 23.2% with strong double-digit growth buoyed by continued momentum in our innovation & renovation offerings.

  • Rebased net sales for the popular segment shrunk 6.3% as inflation continues to impact this price-sensitive consumer segment.

  • Underlying Gross margin, after adjusting for a one-off credit on account of reversal of indirect tax provisions, stood at 42.6%, down 225 bps from last year but improved sequentially.

  • A&P re-investment rate during the quarter was 13.8% of sales largely reflecting the high spend on the BIO portfolio that normalised on market supplies after three quarters.

  • Reported EBITDA at INR338 Cr., with EBITDA margin at 13.6% is down 322 bps, primarily driven by the gross margin contraction, higher A&P partly offset by a one-off credit on account of reversal of indirect tax provisions.

  • Interest expense at INR36 Cr. for the quarter was on account of the customary non-debt related items and a reassessed impact of an old tax litigation matter.

  • Profit after tax was INR204 Cr. with net profit margin at 8.2%.

About Diageo India
Diageo India is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo Plc. The company manufactures, sells and distributes an outstanding portfolio of premium brands such as 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. Headquartered in Bengaluru, our wide footprint is supported by a committed team of over 3000 employees, 39 manufacturing facilities across states and union territories in India, a strong distribution network and a state-of-the-art Technical Centre. Incorporated in India as United Spirits Limited (USL), the company is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. For more information about Diageo India, our people, our brands, and our performance, visit us at Visit Diageo’s global responsible drinking resource,, for information, initiatives, and ways to share best practices.
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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.