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Indian alcoholic beverages giant United Spirits published its Q1 results wherein the company reported a 204.2% surge in profits.
For the unversed, United Spirits Limited is the Indian subsidiary of global alcohol giant Diageo. It is India's leading alcohol beverage company with an outstanding portfolio of beverages which include Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Singelton, Royal Challenge, McDowell's No. 1, Smirnoff, Ketel One, Tanqueray and Captain Morgan. The company has 50 manufacturing facilities all over India.
L&T Q1 results are live, read now.
The company's net sales grew 34.3% YoY as sales for the quarter ending in June 2022 came in at Rs 2,169 crores. The sales volume of the company grew 17.9% to 18,545 cases. Other income of the company surged 137% to 25 crores while the company's marketing costs grew 67%.
The Prestige & Above segment accounted for 71% of net sales during the quarter as sales of the segment improved 44% during the quarter. The Popular segment contributed 26% of net sales while its sales grew 13% during the quarter. Interestingly, the Premium & Luxury portfolio of the company grew faster than the Prestige & Above portfolio due to the company's premiumization drive.
EBITDA of the company came in at Rs 274 crores, growing 63.5% YoY as the EBITDA margin improved to 12.6%. Earnings per share of the company grew 190% to Rs 2.9 per share.
“We have delivered another quarter of steady performance in a challenging operating environment. Our business today is ahead of pre-pandemic levels, substantiating the resilience of our category. Double-digit inflation, scotch supply constraints in select markets, and a one-time special grant to our people in recognition for the outstanding contribution in extremely challenging times, impacted the EBITDA margin delivery." said Hina Nagarajan, CEO of Diageo India.
Despite posting growth in profits, the company's stock witnessed a full gap-down opening as it opened at Rs 835 per share. The share declined even further as it fell over 6% to close at Rs 792.90 per share on Wednesday.
Article by Aman Agarwal.
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