Bengaluru, India - May 24, 2024: United Spirits Ltd., a leading beverage alcohol company in India, reported its audited consolidated & standalone results for the fourth quarter and financial year ended 31 March 2024. 

Key Highlights for Q4FY24 & FY24: (Like-for-Like)

Consolidated
• Net sales value (NSV) for Q4FY24 at INR2,783 Cr. (+11.2%) and FY24 at INR11,321 Cr. (+14.2%)

• EBITDA for Q4FY24 at INR334 Cr. (+41.6%) and FY24 at INR2,001 Cr. (+53.5%)

Standalone
• NSV for Q4FY24 at INR2,666 Cr. (+6.9%) and FY24 at INR10,692 Cr. (+10.5%)

• Prestige & Above NSV growth for Q4FY24 at 6.6% and FY24 at 11.9%

• EBITDA for Q4FY24 at INR361 Cr. (+6.9%) and FY24 at INR1,708 Cr. (+30.9%)

• EBITDA margin for Q4FY24 at 13.6% and FY24 at 16.0%

 

Ms. Hina Nagarajan, CEO & Managing Director, commenting on the FY24 performance, said:

“We have ended fiscal year 2023-24 delivering our double-digit growth guidance and returned to mid teen margins amidst challenging external environment. The year witnessed sequentially moderating demand on the back of sustained consumer inflation and post pandemic consumption normalisation. We have continued our premiumisation intent through innovation and renovation to secure future growth. Our most iconic trademark is being renovated and stretched upwards under the new “House of McDowell’s” umbrella that will see it reach new consumers in different sub segments and formats. In recognition of our commitment to sustainable, modern Made in India Luxury, Godawan 100 was recently crowned “Single Malt Whisky of the Year” at the London Spirits Competition, a premier event in the Global Beverage Alcohol industry. This sets the stage for us to enter the new fiscal year with even more confidence in our strategy.

We are immensely proud of the Royal Challengers Bengaluru Women’s Premier League (WPL) team, which is owned by our 100% subsidiary, Royal Challengers Sports Private Limited (RCSPL), winning the 2nd edition of the WPL in March 2024.

The Board of Directors have recommended a final dividend of INR5.0 per share for the financial year 2023-24, subject to Shareholder’s approval. Looking ahead, our focus is to sustain the momentum established in the last three years and stay committed to our consumer-focused future-back strategy, while creating long term value for all our stakeholders.”

(The scheme for the Pioneer Distilleries Limited (PDL) 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.)

Q4FY24 performance highlights:

Consolidated:
• Q4FY24 Consolidated net sales value (NSV) was at INR2,783 Cr., up 11.2% versus same period prior year. This was driven by the growth in the standalone business as well as income from the Indian Premier League.

• Q4FY24 Consolidated EBITDA was at INR334, Cr., a growth of 41.6% versus prior year driven by the earlier start of the Indian Premier League 2024.

• Q4FY24 Consolidated Profit after tax was at INR241 Cr.

Standalone:

• Total NSV at INR2,666 Cr. increased 6.9% YoY driven by competitive performance of our renovation and innovation offerings and resilient consumer demand. Within the above, Prestige & Above segment grew 6.6%.

• NSV for the Popular segment grew 3.3% as the trademarks performed competitively in the salient
states on the back of interventions.

• Gross margin at 43.3% was a contraction of 205 bps YoY on reported basis. After adjusting for a one-off credit of INR69 Cr. on account of reversal of indirect tax provisions in Q4FY23, underlying gross margin expanded by 73bps YoY.

• A&P re-investment rate was 12.2% of sales, reflecting the spends on renovation and innovation as well as ongoing investment behind the brands.

• EBITDA at INR361 Cr., an increase of 6.9% YoY. The EBITDA margin was 13.6%, in-line with prior
year reported margin, though an expansion of 278 bps on an underlying basis.

• Interest cost at INR29 Cr., was down 19.2%. After adjusting a one-off benefit of INR16 Cr. from the prior year comparator, interest cost was down 44.2%. The interest cost is on account of the
customary non-debt related items.

• Exceptional charge of INR31 Cr. is on account of the ongoing supply agility programme.

• Profit after tax was INR384 Cr. with a net profit margin of 14.4%.

 

(The scheme for the Pioneer Distilleries Limited (PDL) 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.)

FY24 performance highlights:

Consolidated:
• Consolidated net sales value (NSV) at INR11,321 Cr., up 14.2% YoY, in-line with growth in the standalone business.

• Consolidated EBITDA was at INR2,001 Cr., growth of 53.5% YoY.

• FY24 consolidated profit after tax was at INR1,408 Cr.

Standalone:

• Total NSV at INR10,692 Cr. increased 10.5% YoY, driven by continued premiumisation and choiceful consumption with increased brand loyalty. While the consumer is rationalising social occasions, we are not witnessing meaningful downtrading. Within the above, Prestige & Above segment grew 11.9%.

• NSV for the Popular segment declined 2.5% compared to same period last year. This was primarily due to steep consumer price increases in a high demand elastic segment, driven by both higher excise duties in the segment’s salient state as well as price increases taken by the industry after a prolonged period of time.

• Gross margin was 43.4%, up 129 bps like-for-like versus last year. Underlying gross margin stood at 43.3%, after excluding the one-off benefit of INR13 Cr. driven by a write-back. This was an expansion of 189 bps on an underlying basis versus the prior year. The one-off credit in the previous year was on account of reversal of indirect tax provisions. The expansion was driven by headline pricing realisation flow-through, revenue growth management and cogs productivity initiatives partially offset by ENA inflation.

• A&P re-investment rate was 9.7% of sales as we continue to invest behind the brands.

• EBITDA at INR1,708 Cr., an increase of 30.9% YoY. The reported EBITDA margin was 16.0%, up 249 bps versus prior year comparator. This was largely driven by gross margin expansion and productivity across the value chain. Underlying EBITDA margin stood at 15.9%, an expansion of 282 bps versus prior year comparator.

• Interest cost at INR76 Cr., is down 26.9%. Underlying interest cost was at INR91 Cr. after excluding the one-off reversal benefit of INR15 Cr. This was a decrease of 24.0% versus prior year comparator. The one-off credit in the previous year was amounting to INR16 Cr. Interest cost is on account of customary non-debt related items.

• Exceptional charge of INR17 Cr. is on account of INR31 Cr. income from the prior year slump sale transaction recognised as income in Q2FY24 after completion of customary post-transaction closure obligations offset by a charge of INR48 Cr. related to the ongoing supply agility programme.

• Profit after tax was INR1,312 Cr. with a net profit margin of 12.3% 

 

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.

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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.