United Spirits Q3 Profit Slips 4.3% YoY Despite 14.4% Sales Surge

24 Jan 2025 , 12:28 AM

Diageo-owned United Spirits Ltd posted a net profit decrease of 4.3% YoY during the quarter ended December 31, 2024. Net profit for the quarter at ₹335 crore was compared to ₹350.2 crore the same period a year ago.

Consolidated net sales while the profit dipped, rose by a healthy 14.4% YoY to ₹3,433 crore from ₹3,002 crore the year before. Total revenue from operations stood at ₹7,732 crore, up from ₹6,962 crore on the back of strong festive demand and an uptick in business activity for the group in Andhra Pradesh.

Prestige and above segment, that was more than 89.2% of standalone sales, was healthy at 16.1%. Popular was up at 9.6% with good support through appropriate pricing and duty cuts in key markets.

At the operating level, EBITDA was up 17% YoY at ₹568 crore in Q3 FY25 from ₹486.5 crore that the company registered in the same quarter last fiscal. The EBITDA margin crept up 16.6%, however short of an expected target at 17.6%, compared with 16.2% in Q3 FY24.

Gross margin was up 131 basis points to 44.7%, primarily driven by better revenue management and productivity improvements. Advertising and promotion expenses totaled 11% of net sales and continued to reflect efforts to build the brands.

In the National Stock Exchange, shares of United Spirits has gained 2.76% today on January 23, 2025. The stock has gained a total of 14.64% in the last one year.