United Spirits has posted a 207 per cent increase in net profit to ₹210 crore during the first quarter of the current fiscal, following resilient consumer demand in the off-trade and recovery of the on-trade. The company’s net sales increased 34.3 per cent to ₹2,169 crore.
Inflationary pressures
“We have delivered another quarter of steady performance in a challenging operating environment. Our business today is ahead of pre-pandemic levels. Double-digit inflation, scotch supply constraints in select markets and a one-time special grant to our people, impacted the EBITDA margin delivery. In the shorter term, we expect inflationary pressures to continue. Our confidence in the medium to long-term prospects of our industry, the resilience of our business and our ability to navigate headwinds remains high,” United Spirits CEO Hina Nagarajan said.
Prestige & Above net sales grew 43.7 per cent 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, said a company statement.
Gross margins came in at 40.9 per cent, down 366 bps, primarily reflecting the adverse impact of cost inflation, which was partially offset by favourable product mix and productivity savings. The interest cost of ₹17 crore is a non-debt related expense, the statement added.