26 JUL 2022
26 JUL 2022 Press release
Unaudited financial results for the quarter ended 30 June 2022
First quarter performance highlights:
- Net sales increased 34.3%, lapping a soft prior year comparator, with growth driven by resilient consumer demand in the off-trade and recovery of the on-trade.
- Prestige & Above net sales grew 43.7% benefitting from premiumisation. Performance in the quarter was impacted by constraints in scotch supplies in select markets on account of ongoing pricing deliberations with the Government.
- Popular segment net sales grew 13.1% within which the priority states grew 17.1%.
- Gross margin was 40.9%, down 366bps; primarily reflecting the adverse impact of cost inflation, which was partially offset by favourable product mix and productivity savings.
- Our marketing reinvestment rate during the quarter was 6.5% of net sales. Staff costs includes a one-time grant for our employees for their outstanding contribution, commitment, and resilience in extremely challenging times.
- EBITDA was Rs. 274 Crores, up 63.5%. Reported EBITDA margin was 12.6%, up 226bps, reflecting operating leverage on fixed costs. Underlying EBITDA margin excluding the one-time special pay-out for our employees stands at 13.8%.
- Interest cost of Rs. 17 Crores is a non-debt related expense.
- Tax credit is on account of recognising a deferred tax asset, due to certainty in utilisation of the carried forward capital losses.
- Exceptional items include on-going business restructuring expenses.
- Profit after tax was Rs. 210 Crores, up 204.2% and PAT margin was 9.7%.
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