Beverage giant United Spirits today reported a profit after tax (PAT) of Rs 291 crore in the third quarter of the financial year 2021-22, which was up by 27 per cent as compared to the year-ago period.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The company's PAT grew by 10.1 percent, as it came in at Rs 273 crore in the second quarter of the current fiscal.

The net sales increased 15.9%, reflecting a strong quarter driven by resilient consumer demand in the offtrade channel, continued premiumisation and recovery of the on-trade channel. Underlying net sales increased 14.3%, excluding the one-off sale of bulk scotch.

The Prestige & Above segment net sales grew 20.0%, with strong double-digit growth in our scotch portfolio. Popular segment net sales declined 1.7%, while priority states were flat.

Gross margin was 44.1%, down 49bps on a reported basis, driven by input cost inflation, partially offset by favourable product mix and productivity savings. Adjusting the one-off sale of bulk scotch, underlying gross margin was 44.3%, down 31bps.

Reported EBITDA was Rs 491 crores, up 27.9%. Reported EBITDA margin was 17.0%, up 159 bps, primarily driven by operating leverage on fixed costs. We upweighted our investment in marketing to support strategic priorities and on-going demand growth initiatives.

Interest includes a one-off non-debt related charge. Underlying interest was Rs. 16 Crores, down 56.8% driven by reduced debt and lower interest rates.

Hina Nagarajan, CEO, commenting on the quarter and nine months ended 31 Dec. 2021 said: “We have delivered a strong quarter, continuing the growth momentum amidst rising inflation. The broad-based growth in the Prestige & Above segment demonstrates the strength of our portfolio, and the continued agility and resilience of the team."

"We launched the second limited edition of Epitome Reserve Craft Whiskey, a Peated Indian Single Malt. We continued to expand distribution of the renovated Black Dog Scotch, Signature Whiskey and our innovation offering of Royal Challenge American Pride Whiskey. We also launched ‘In.thebar.com’ this quarter, our digital platform to drive focused consumer engagement and celebrations," Nagarajan added.