United Spirits Q1 PAT spurts 204% YoY to Rs 210 cr

27 Jul 2022 , 10:02 AM

The increase in net sales reflects strong consumer demand in off trade, recovery in the on-trade channel, active portfolio management and benefitting from soft comparator. Prestige & Above net sales grew 43.7% 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. Popular segment net sales grew 13.1% within which the priority states grew 17.1%. The Prestige & Above segment accounted for about 71% of net sales during the quarter, up 5ppts compared to the same period last year. The Popular segment accounted for about 26% of net sales during the quarter, down about 5ppt compared to the same period last year. Overall volume increased 17.9% with growth of 24.9% in the Prestige & Above segment, outpacing the Popular volume expansion of 10.7%. Underlying price/mix for the year was favourable 16.4%, mainly due to favourable product and state mix. Profit before tax (PBT) before exceptional items surged 110.9% year-on-year to Rs 217 crore in Q1 June 2022. Reported EBITDA (Rs 274 crore) increased 63.5% for the quarter and margin improved by 226 bps driven by volume increase, cost inflation and better operating leverage. Total expense jumped 30.3% YoY to Rs 1933.50 crore in Q1 June 2022. Cost of materials consumed rose 21.3% to Rs 1392.50 crore. Hina Nagarajan, CEO, commenting on the quarter ended 30 June 2022 said: We have delivered another quarter of steady performance in a challenging operating environment. Our business today is ahead of pre-pandemic levels, substantiating the resilience of our category. Double digit inflation, scotch supply constraints in select markets and a one-time special grant to our people in recognition for the outstanding contribution in extremely challenging times, impacted the EBITDA margin delivery. Looking ahead, 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. We remain focused in our strategy of re-shaping the portfolio towards premiumization, revenue growth management initiatives, enhancing our value chain productivity pipeline and continuing to build the organization of tomorrow, to deliver consistent growth and long-term value creation for all our stakeholders. United Spirits is the countrys leading beverage alcohol company and a subsidiary of global leader Diageo plc. The company manufactures, sells and distributes a portfolio of premium brands. Shares of United Spirits fell 4.68% to Rs 810.25 on the BSE. Powered by Capital Market – Live News