Unaudited financial results for the first quarter ended 30 June 2024

23 Jul 2024 Financial results
Mocktail

Bengaluru, India - July 23, 2024: United Spirits Ltd., a leading beverage alcohol company in India, reported its unaudited consolidated & standalone results for the first quarter ended 30 June 2024.

 

Key highlights for the quarter:

Consolidated

• Net sales value (NSV) at INR2,761 Cr.; EBITDA at INR713 Cr.

• NSV grew 3.5% (Y-o-Y) and EBITDA was almost flat year-on-year

Standalone

• Net sales value (NSV) at INR2,352 Cr., with Prestige & Above saliency of 88%

• Total NSV grew 8.3% y-o-y, Prestige & Above segment NSV grew 10.1% y-o-y

• EBITDA at INR458 Cr., a growth of 18.9% y-o-y, with a margin of 19.5%

 

Ms. Hina Nagarajan, CEO & Managing Director, commenting on the Q1FY25 performance, said:

“We have commenced fiscal 2025 with a steady performance in the first quarter. Our renovation and innovation offerings are rolling out progressively with an encouraging response.

Looking ahead, we remain focused on enhancing the long-term competitiveness of our portfolio, and to sustainably deliver in a soft demand environment and harness every opportunity to create long-term value for all our stakeholders.”

 

Q1FY25 performance highlights:

Consolidated:

• Consolidated net sales at INR2,761 Cr., grew by 3.5%. The growth in standalone business was offset by the timing of men’s IPL matches.

• Consolidated EBITDA was at INR713 Cr. almost flat from prior year comparators.

• Q1FY25 consolidated Profit after tax was at INR485 Cr.

Standalone:

• Net sales at INR2,352 Cr. increased 8.3% year on year, driven by improved footprint & saliency of our innovation and renovation offerings and revenue growth management interventions. Within the above, Prestige & Above segment grew 10.1%.

• Net sales for the Popular segment fell 2.4% y-o-y, as inflation continues to impact the price sensitive consumer of this segment.

• Gross margin was 44.5%, up 85 bps versus last year. Excluding the one-off benefit of INR13 Cr. driven by a write-back in the base quarter, gross margin expanded 145 bps over the previous year on the back of sustained revenue growth management interventions and productivity flow-through.

• A&P re-investment rate was 7.4% of sales reflecting the seasonally low quarter for the business; however, higher than the prior year comparator.

• EBITDA at INR458 Cr., an increase of 18.9% over same period last year.

• EBITDA margin was 19.5%, up 174 bps versus last year. Excluding the one-offs from the prior year comparatives, EBITDA margin expanded 234 bps year-on-year. This was largely driven by gross
margin expansion, partly off-set by the higher A&P spends and fixed cost operating leverage.

• Interest cost at INR22 Cr. Excluding the one-off reversal benefit of INR15 Cr. in the base quarter, interest cost was up 12.8% versus same period previous year.

• Profit after tax was INR299 Cr. with net profit margin at 12.7%. 

 

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.