Conference Call with United Spirits Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Breweries & Distilleries company United Spirits announced 9MFY25 & Q3FY25 results Q3FY25 Financial Highlights: Net sales at Rs 3,432 crore. increased 14.8% year-on-year with Prestige & Above segment growing 16.1%. Growth was driven by resilient consumer demand in peak festive season and a fast scale-up in Andhra Pradesh. Net sales for the Popular segment grew 9.6%. Value righting done a few quarters ago along with the duty reduction in the most salient state, provided the necessary growth tailwinds. Gross margin was 44.7%, up 131 bps versus last year on the back of sustained revenue growth management interventions and productivity flow-through. A&P; re-investment rate was 11.0% of net sales, reflecting the seasonality of the peak consumption quarter and investment behind the brands and innovations. EBITDA at Rs 588 crore., an increase of 19.8% YoY. EBITDA margin was 17.1%, expansion of 71 bps versus last year. Interest cost was at Rs 20 crore. and is on account of customary non-debt related expenses. Profit after tax was Rs 473 crore. with a net profit margin of 13.8%. 9MFY25 Financial Highlights: Net sales at Rs 8,627 crore. increased 7.5% over prior year. Within this, Prestige & Above segment grew 8.8%. The growth is reflective of the strength of our broad-based portfolio with national reach and our ability to capitalise on opportunities that present themselves in the normal course of business. Net sales for the Popular segment were up 0.6% versus prior year comparator on the back of a strong quarter. Gross margin at 44.8%, up 134 bps versus last year, driven by healthy headline pricing flow-through, revenue growth management and COGS productivity initiatives. A&P; re-investment rate was 9.4% of net sales, reflecting the investment behind the brands and the innovations & renovations. EBITDA at Rs 1,553 crore. is an increase of 15.3% over prior year comparator. EBITDA margin was 18.0%, up 122 bps versus last year. This is driven by gross margin expansion and productivity across the value chain. 9MFY25 Interest cost is at Rs 67 crore. Excluding the one-off reversal benefit of Rs 15 crore. in Q1FY24, interest cost in 9MFY24 was at Rs 62 crore. Interest cost is on account of customary non-debt related expenses and the increase is on account of lease finance cost partly off-set by savings in other line items. Exceptional charge of Rs 65 crore. in Q3FY25 is related to the multi-year supply agility program. Profit after tax stands at Rs 1,107 crore. with a net profit margin of 12.8%. Hina Nagarajan, CEO & Managing Director, said: “Amidst a moderate but sequentially improving demand environment, we have delivered a quarter in line with our aspirations buoyed by the festive season and fast scale-up in the state of Andhra Pradesh. Looking ahead, we remain cautiously optimistic in the short-term while remaining committed to the long-term potential of the India consumer story.” Result PDF