Conference Call with United Spirits Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Breweries & Distilleries company United Spirits announced Q1FY25 results: Consolidated: Consolidated net sales at Rs 2,761 crore, grew by 3.5%. The growth in standalone business was offset by the timing of men’s IPL matches. Consolidated EBITDA was at Rs 713 crore almost flat from prior year comparators. Q1FY25 consolidated Profit after tax was at Rs 485 crore Standalone: Net sales at Rs 2,352 crore increased 8.3% year on year, driven by improved footprint & saliency of our innovation and renovation offerings and revenue growth management interventions. Within the above, Prestige & Above segment grew 10.1%. Net sales for the Popular segment fell 2.4% YoY, as inflation continues to impact the price sensitive consumer of this segment. Gross margin was 44.5%, up 85 bps versus last year. Excluding the one-off benefit of Rs 13 crore driven by a write-back in the base quarter, gross margin expanded 145 bps over the previous year on the back of sustained revenue growth management interventions and productivity flow-through. A&P; re-investment rate was 7.4% of sales reflecting the seasonally low quarter for the business; however, higher than the prior year comparator. EBITDA at Rs 458 crore, an increase of 18.9% over same period last year. EBITDA margin was 19.5%, up 174 bps versus last year. Excluding the one-offs from the prior year comparatives, EBITDA margin expanded 234 bps year-on-year. This was largely driven by gross margin expansion, partly off-set by the higher A&P; spends and fixed cost operating leverage. Interest cost at Rs 22 crore Excluding the one-off reversal benefit of Rs 15 crore in the base quarter, interest cost was up 12.8% versus same period previous year. Profit after tax was Rs 299 crore with net profit margin at 12.7%. Hina Nagarajan, CEO & Managing Director, commenting on the Q1FY25 performance, said: “We have commenced fiscal 2025 with a steady performance in the first quarter. Our renovation and innovation offerings are rolling out progressively with an encouraging response. Looking ahead, we remain focused on enhancing the long-term competitiveness of our portfolio, and to sustainably deliver in a soft demand environment and harness every opportunity to create long-term value for all our stakeholders.” Result PDF