The company said that the growth in sales reflected a strong quarter driven by resilient consumer demand in the off-trade channel, continued premiumisation and recovery of the on-trade channel. Underlying net sales increased 14.3%, excluding the one-off sale of bulk scotch.
Prestige & Above segment net sales grew 20%, with strong double-digit growth in the scotch portfolio. Popular segment net sales declined 1.7%, while priority states were flat.
Gross margin was 44.1%, down 49 bps on a reported basis, driven by input cost inflation, partially offset by favourable product mix and productivity savings. Adjusting the one-off sale of bulk scotch, underlying gross margin was 44.3%, down 31 bps.
Reported EBITDA was Rs 491 crore, up 27.9%. Reported EBITDA margin was 17.0%, up 159 bps, primarily driven by operating leverage on fixed costs. The company upweighted its investment in marketing to support strategic priorities and on-going demand growth initiatives.
Interest includes a one-off non-debt related charge. Underlying interest was Rs 16 crore, down 56.8% driven by reduced debt and lower interest rates.
Hina Nagarajan, CEO, said: ?We have delivered a strong quarter, continuing the growth momentum amidst rising inflation. The broad-based growth in the Prestige & Above segment demonstrates the strength of our portfolio.
Healthy operating cash flow has enabled us to reach debt free status as on 31 December 2021. CRISIL upgraded its rating on United Spirits Limiteds long-term bank facilities to AAA / Stable while reaffirming its A1+ rating on the short-term bank facilities.
External operating environment in the near-term will remain challenging, including potential impact from COVID-19 and rising cost inflation.?
United Spirits manufactures and distributes a variety of alcohols and spirits, including whiskey, brandy and rum. The company also manufactures Indian-made foreign liquor brands.
The scrip fell 1.70% to currently trade at Rs 861.15 on the BSE.
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