United Spirits, a leading beverage alcohol company in India, reported its unaudited consolidated & standalone results for the first quarter of the fiscal year that ended 31 March 2024.
Key Highlights for the quarter:
• Net sales value (NSV) at INR2,668 Cr.; EBITDA at INR714 Cr.
• NSV grew 28.6% and EBITDA grew 129.4% on rebased prior year comparators
• Net sales value (NSV) at INR 2,172Cr, with Prestige & Above saliency of 86%
• Total NSV grew 17.4%, Prestige & Above NSV grew 21.2%, both on rebased prior year comparators
• Reported EBITDA at INR385 Cr. with margin of 17.7%
Hina Nagarajan, chief executive officer and managing director, commenting on the Q1FY24 performance, said, “We have commenced fiscal 2024 with a robust first quarter performance. While inflationary pressures remain, our strategy to reshape the portfolio combined with revenue growth management and focus on everyday efficiency is driving sustainable growth across the Prestige & Above segment."
"I am happy to share that Royal Challengers Sports (RCSPL)’s, our wholly-owned subsidiary, has stepped up its earnings, driven by revenues from the Indian Premier League new media rights cycle. This reinforces our longer-term confidence in the Women’s Premier League. Our Sports business aligns to our core purpose of celebration and is a vital component of our consolidated portfolio."
Further, we are progressing well on our Society 2030 goals through our holistic ESG focus and “Diageo in Society” initiatives. Looking ahead, our priority is to maintain the growth momentum and to deliver long-term value to all our stakeholders.”
(The scheme for the Pioneer Distilleries merger came into operation on 30th Dec’ 2022 but is effective 1st April’2021. All current & previous period comparators include the impact of the merger. All accounts referred as ‘Rebased’ are Reinstated for PDL merger as well as adjusted for slump sale and franchising of the strategically reviewed popular portfolio for a like for like comparison.)
Q1FY24 performance highlights:
• Consolidated net sales at INR2,668 Cr., grew by 28.6% on rebased prior year comparators. This was led by the strong growth in the standalone business and a significant increase in revenue, driven by the Indian Premier
League’s new five-year media rights cycle (2023-27).
• Consolidated reported EBITDA was at INR714 Cr., growth of 129.4% on rebased prior year comparators.
• Q1FY24 consolidated Profit after tax was at INR477 Cr.
• Net sales at INR2,172 Cr. increased 17.4% on rebased prior year comparators driven by continued premiumisation tailwinds, and improved footprint & saliency of our innovation / renovation offerings. Within the above, Prestige & Above segment grew 21.2%.
• Net sales for the Popular segment grew 0.9% on rebased prior year comparator.
• Reported Gross margin was 43.6%, up 139 bps versus last year. Excluding the one-off benefit of INR13 Cr. driven by a write-back, underlying gross margin stood was 43.0%, an expansion of 80 bps versus the prior year, continuing the sequential quarter-on-quarter improvement.
• A&P re-investment rate was 6.8% of sales largely reflecting the lowest sales quarter.
• Reported EBITDA at INR385 Cr., an increase of 83.5% over rebased prior year comparator. Reported EBITDA margin was 17.7%, up 638 bps versus last year. Excluding the one-offs from the current quarter and the prior year comparatives, core EBITDA grew 57.7% year-on-year.
• Underlying EBITDA margin was 17.1%, an increase of 437 bps over rebased prior year comparator. This was largely driven by gross margin expansion and productivity across the value chain.
• Reported interest cost at INR4.3 Cr., declined 81.0%. Excluding the one-off reversal benefit of INR15 Cr., interest cost was INR19 Cr., down 14.6% versus same period prior year.
• Exceptional charge of INR17 Cr. is on account of the ongoing supply agility programme.
• Profit after tax was INR238 Cr. with net profit margin at 11.0%.