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United Spirits Ltd reported 105.9 per cent y-o-y rise in profit after tax (PAT) at ₹563 crore. This was after incorporating exceptional gain accruing from the slump sale transaction, it said.
The exceptional items primarily comprise a one-time profit of ₹381 crore arising from the the slump sale of the business undertaking associated with 32 brands in the ‘popular’ segment. The total income was nearly flat at ₹8,259.5 crore for Q2 in contrast with ₹8,151.5 crore in the last quarter, a mere increase of 1.32 per cent.
Hina Nagarajan, CEO, United Spirits, said the performance is underpinned by continued growth momentum and strong mix improvement from recent innovation and brand renovations.”
Inbrew Beverages
“We have successfully completed sale of the business undertaking associated to Inbrew Beverages and have given effect to the franchise of 11 other brands for a period of five years. This is aligned to our mission and key to our “Portfolio Reshape Strategy’,” she added.
The sales of Prestige & Above segment grew 23.1 per cent benefitting from the momentum of innovation and renovation done in prior quarters. Popular segment net sales grew 1.7 per cent within which the priority states grew 3.8 per cent.
The growth reflects resilient consumer demand in off-trade, rebounding in on-trade and continued mixed improvement. Growth was also broad based and reflects the depth of the portfolio and strength of brands, said the company.
Double-digit inflation
Reported EBITDA was ₹446 crores, up 4.8 per cent and EBITDA margin was 15.5 per cent. Underlying EBITDA excluding one-offs in prior year was up 11 per cent. The gross margin was 39.5 per cent, primarily reflecting the adverse impact of double-digit inflation in COGS.
“The external environment remained challenging during the quarter with ongoing scotch pricing negotiations in select states, route to market change in Delhi, and unprecedented levels of input cost inflation. We maintained cost discipline while investing in long-term priorities. Looking ahead, in the shorter term, we expect inflation challenges to continue,” Nagarajan said.
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