United Spirits net up 277% due to higher exceptional gains; Sales increase 9%
India’s largest liquor firm, which is now controlled by Diageo Plc, reported 9% year on year increase in its total income for the quarter at Rs 2,041 crore.
By Sagar Malviya, ET Bureau | Updated:
MUMBAI: United Spirits on Tuesday reported net profit of Rs 44 crore crore for the quarter ended June, an increase of 277% mainly due to higher exceptional items.
India’s largest liquor firm, which is now controlled by Diageo Plc, reported 9% year on year increase in its total income for the quarter at Rs 2,041 crore.
"We have the right strategy in place, focusing on premiumization coupled with selective participation in popular," said Anand Kripalu, CEO at USL. "Several of the challenges we have faced last year are now behind us. We have seen good growth in some states and partial recovery in others."
Gross margins improved by 161 basis points helped by productivity initiatives and strong performance of the prestige and above segment, part of its portfolio premiumisation strategy.
However, the popular segment that accounts for 58% of total volumes were down 400 basis points partly impacted by Bihar prohibition.
The company said Uttar Pradesh has rebounded strongly post the excise duty reduction while Haywards in Karnataka has stabilised and delivered 1% volume growth in the quarter. Additionally, the price increase in Karnataka will benefit the next quarter, it said in a statement.
India’s largest liquor firm, which is now controlled by Diageo Plc, reported 9% year on year increase in its total income for the quarter at Rs 2,041 crore.
"We have the right strategy in place, focusing on premiumization coupled with selective participation in popular," said Anand Kripalu, CEO at USL. "Several of the challenges we have faced last year are now behind us. We have seen good growth in some states and partial recovery in others."
Gross margins improved by 161 basis points helped by productivity initiatives and strong performance of the prestige and above segment, part of its portfolio premiumisation strategy.
However, the popular segment that accounts for 58% of total volumes were down 400 basis points partly impacted by Bihar prohibition.
The company said Uttar Pradesh has rebounded strongly post the excise duty reduction while Haywards in Karnataka has stabilised and delivered 1% volume growth in the quarter. Additionally, the price increase in Karnataka will benefit the next quarter, it said in a statement.
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