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United Spirits net profit for March quarter declines to Rs 178.6 Crore


Diageo-controlled liquor maker United Spirits Ltd (USL) reported on Friday a 12.1% year-on-year (YoY) drop in net profit to Rs 178.6 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter of last year, the company recorded a net profit of Rs 203 crore. CNBC-TV18 Polls had predicted a profit of Rs 240 crore for the quarter under review.

Operationally, EBITDA jumped 9% to Rs 431.8 crore in Q4 FY22 from Rs 396.3 crore in Q4 FY21. EBITDA margin was 17% in Q4 FY22, compared to 17.8% in Q4 FY21. EBITDA is earnings before interest, taxes, depreciation and amortization.

Net sales increased 9.5% on resilient consumer demand in home commerce and a gradual recovery in home commerce. Gross margin was 41.7%, down 220 basis points; impacted by the rise in inflation partially offset by a favorable product mix and productivity,

Hina Nagarajan, CEO, said, “We delivered another quarter of consistent and resilient EBITDA performance. The widespread growth of the Prestige & Above segment demonstrates the resilience of consumer demand, the strength of our portfolio and the team’s focused execution of strategy. Strong cash flow generation allows for reinvestment in long-term sustainable growth.”

She said the company had acquired a strategic minority stake in Nao Spirits & Beverages Private Ltd, an emerging craft gin company in India, with the award-winning “Greater Than” and “Hapusa” brands. “This investment provides us with the opportunity to strengthen our stake in the fast-growing premium gin segment in India,” said Nagarajan.

“We have just completed the strategic review of certain popular brands and the board has approved the sale and franchise of this portfolio to an unrelated third party. This is an important move to enable increased focus on ‘Prestige & Above’ and reshaping our portfolio to help us achieve our mission of growth,” she added.

The results fell after the close of market hours. Shares of United Spirits closed at Rs 778.65, up Rs 18.50, or 2.43% on BSE.

First post: STI

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