Breweries & Distilleries company United Spirits announced Q1FY24 results: Consolidated Q1FY24: Net sales at Rs 2,668 crore, 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). Reported EBITDA was at Rs 714 crore, growth of 129.4% on rebased prior year comparators. Profit after tax was at Rs 477 crore Standalone Q1FY24: Net sales value (NSV) at Rs 2,172 crore, with Prestige & Above saliency of 86% Reported Gross margin was 43.6%, up 139 bps versus last year Total NSV grew 17.4%, Prestige & Above NSV grew 21.2%, both on rebased prior year comparators Reported EBITDA at Rs 385 crore with margin of 17.7% Profit after tax was Rs 238 crore with net profit margin at 11.0%. Hina Nagarajan, CEO & 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 acroreoss the Prestige & Above segment. I am happy to share that Royal Challengers Sports Private Limited (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.” Result PDF
Breweries & Distilleries company United Spirits announced Q4FY23 & FY23 results: Q4FY23: Rebased NSV increased 15.6% reflecting a strong quarter driven by continued momentum in the off-trade and on-trade along with the normalisation of BIO Supplies. Prestige & Above segment net sales grew 23.2% with strong double-digit growth buoyed by continued momentum in our innovation & renovation offerings. Rebased net sales for the popular segment shrunk by 6.3% as inflation continues to impact this price-sensitive consumer segment. Underlying Gross margin, after adjusting for a one-off credit on account of the reversal of indirect tax provisions, stood at 42.6%, down 225 bps from last year but improved sequentially. A&P; re-investment rate during Q4FY23 was 13.8% of sales largely reflecting the high spending on the BIO portfolio that normalised on market supplies after three quarters. Reported EBITDA at Rs 338 crore, with EBITDA margin at 13.6% is down 322 bps, primarily driven by the gross margin contraction, higher A&P; partly offset by a one-off credit on account of reversal of indirect tax provisions. Interest expense at Rs 36 crore for Q4FY23 was on account of the customary non-debt related items and a reassessed impact of an old tax litigation matter. Profit after tax was Rs 204 crore with a net profit margin of 8.2%. FY23: Rebased net sales registered a growth of 19.5% & underlying NSV grew 20.1% (excluding the one-off Bulk Scotch sale impact from the prior year comparator) on the back of strong premiumisation trend, continued momentum in the off-trade, on-premise recovery, and sustained home consumption trends. Within the above, Prestige & Above segment grew by 22.8%. Rebased net sales for the Popular segment were up 0.9% compared to FY22. Gross margin at 42.1%, down 322 bps versus last year, weighed down by commodity inflation impacting Glass & ENA, partly offset by favourable mix and ramped-up pricing and productivity. EBITDA was at Rs 1,305 crore, 4.0% increase versus last year. EBITDA margin at 13.5% is down 201 bps, primarily due to gross margin contraction offset by additional value chain productivity & growth leverage. Interest cost at Rs 104 crore is up 18% primarily on account of the customary non-debt related items, reassessed impact of an old tax litigation matter, partly offset by the savings driven due to retirement of debt of the merged entity. Exceptional income of Rs 171 crore primarily consists of gain from slump sale of strategically reviewed popular portfolio offset by charges related to supply agility program & legal entity closure expenses Hina Nagarajan, CEO & Managing Director, commenting on the FY23 performance, said: “We have delivered a strong year once again with robust top-line growth & resilient operating margins in an extremely volatile and inflationary environment. As an organization, we have exhibited tenacity and focus amidst macroeconomic headwinds and regulatory challenges. I am pleased with the growth momentum of our Innovation and renovation offerings. The stepped up contribution in growth from the upper and mid-prestige segments lends credence to our portfolio reshaping strategy. This comes on the back of the successful closure of the slump sale and franchising of the strategically reviewed popular portfolio during the year. The supply chain agility programme, announced last quarter, is progressing well, in line with our overall strategy. I am delighted to share a few more achievements from the last quarter. Our Alwar distillery in Rajasthan is Asia’s first spirits distillery to be awarded the prestigious Alliance for Water Stewardship (AWS) certification. Our 100% subsidiary, Royal Challengers Sports Private Limited, has won the bid to own and run the Women Premiere League team for Bangalore. This is yet another step in taking forward our narrative of inclusion and diversity and is aligned to our purpose of celebration. Looking ahead, our core focus remains on continuing the growth momentum, while being more agile as an organisation, with simplified supply chain & legal entity footprint. We continue to remain committed to our consumer-focused future-back strategy, to consistently deliver value to all our stakeholders.” Result PDF