Strong consumer demand pushes United Spirits up 26.62%

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Bangalore, January 25

The country’s largest liquor maker, United Spirits, reported a 26.62% increase in net profit to 291.1 crores for the third quarter of the current financial year thanks to strong consumer demand in the non-trade channel and recovery in the on-trade channel.

Net sales during the three-month period increased by 15.9% to reach 2,885 crores on an annual basis. Its operating income increased by 7.64% for 8,854.5 crores during the same period.

The company also said that due to healthy operating cash flow, it is now completely debt free. Crisil has upgraded its rating on United Spirits Limited’s long-term bank facilities to ‘AAA/Stable’ while reaffirming its ‘A1+’ rating on short-term bank facilities.

“We had a strong quarter, continuing the growth momentum in a rising inflation environment. The widespread growth of the Prestige & Above segment demonstrates the strength of our portfolio and the continued agility and resilience of the team,” United Spirits CEO Hina Nagarajan said in a statement on Tuesday.

Underlying net sales increased 14.3%, excluding one-time bulk Scotch sales, while Prestige & Above segment net sales increased 20% with strong double-digit growth in the company’s Scotch portfolio. company.

Net sales in the liquor maker’s Popular segment fell 1.7%, while Priority States were flat. Gross margin was 44.1%, down 49 basis points on a reported basis, due to input cost inflation, partially offset by a favorable product mix and productivity gains.

Reported EBITDA was 491 crore, up 27.9%, while reported EBITDA margin was 17%, up 159 bps, mainly due to operating leverage on fixed costs. Underlying interest was Rs 16 crore, down 56.8% due to debt reduction and lower interest rates.

Nagarajan said the near-term external operating environment will remain challenging, including the potential impact of Covid-19 and rising cost inflation. “We continue to work with agility and remain focused on strengthening our portfolio while driving productivity across the value chain. We remain confident in the market potential and continue to remain focused on our strategic priorities to drive long-term value creation for all of our stakeholders,” she said.

Published on

January 25, 2022

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