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Our Bureau The country’s largest liquor maker, United Spirits Ltd (USL), part of London-based Diageo plc, has reported a 69 per cent increase in net profit to ₹259 crore for Q2 FY19 on the back of robust sales of its premium brands. For Q2 FY18, it had posted a net profit of ₹153.1 crore.
Total income grew 14.54 per cent YoY to ₹7,153.10 crore. “The improvement in gross margin has been driven mainly by savings from our productivity programme which more than offset the adverse impact of inflation,” Anand Kripalu, CEO, United Spirits, said in a statement.
He said investing in brands continues to be an area of focus for the company, with the reinvestment rate increasing to 9.7 per cent in the first half, versus 8.2 per cent in the same period last year.
In a note to the BSE, the company, however, said certain amendments have been carried out inter alia to Section 198 and Schedule V of the Companies Act, 2013, by way of the Companies (Amendment) Act, 2017, which are effective from September 12, 2018, relating to the remuneration payable to directors by a company.
The company’s Prestige & Above segment net sales grew 19 per cent despite growing double digits in the same period last year. The Popular segment saw net sales grow 8 per cent driven by the underlying momentum and benefiting from a low base last year. Interest costs were ₹42 crore, 37 per cent lower YoY, driven by lower debt, improved debt-mix and lower interest rates.
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