United Spirits on Monday reported a 25.66 per cent jump in consolidated net profit to Rs 181.7 crore in the first quarter of 2019-20. The company had posted a consolidated net profit of Rs 144.6 crore in the year-ago quarter, United Spirits said in a regulatory filing.

Consolidated total income during the period under review stood at Rs 7,296.2 crore as against Rs 6,678 crore in the corresponding quarter last fiscal, it added. Commenting on the performance, United Spirits CEO Anand Kripalu said, “During the quarter, our core business was affected by general elections in line with our earlier guidance.”

He further said, “We trimmed down the reinvestment rate for the quarter in light of the ongoing general elections; however, it should normalise over the course of the year as investing behind our brands continues to be an area of strategic priority for us.” During the first quarter, net sales of ‘prestige and above’ segment, which accounted for accounted for 64 per cent of net sales during the first quarter, grew 9 per cent.

The popular segment, which contributed 29 per cent to total sales, grew by 2 per cent, it added. On the outlook, Kripalu said, “Looking ahead, while we remain watchful of the broader economic slowdown and its impact on the overall consumption in the near term, we remain committed to our medium-term ambition to grow top line by double digits and to improve EBITDA margin to mid-high teens.”

Shares of United Spirits ended the day at Rs 599 apiece, up 2.97 per cent from the previous close in BSE.

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