Diageo-controlled liquor maker United Spirits Ltd (USL) on Tuesday reported a 204% year-on-year (YoY) increase in net profit to Rs 210 crore for the first quarter ended June 30, 2022, on strong demand from consumers.
In the corresponding quarter of last year, the company recorded a net profit of Rs 69 crore. CNBC-TV18 Polls had predicted a profit of Rs 170 crore for the quarter under review.
Its operating income stood at Rs 2,169.3 crore during the period under review, up by 34.3% from Rs 1,615 crore during the corresponding period of the previous financial year.
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Operationally, EBITDA jumped 63.5% to Rs 274.2 crore in the first quarter of FY23 from Rs 168 crore in the first quarter of FY22. was 12.6% in the first quarter of FY23, compared to 10.4% in the first quarter of FY22. EBITDA is earnings before interest, taxes, depreciation and amortization.
Total expenditure for USL stood at Rs 6,864.6 crore, up 12.91% in the first quarter of FY 2022-23 from Rs 6,079.7 crore.
Its net sales increased “failing from a weak comparator a year earlier, with growth driven by resilient consumer demand in home commerce and the recovery of home commerce,” USL said in a statement.
Net sales increased 34.3% during the quarter. Prestige & Above segment net sales increased 43.7% while Popular segment net sales increased 13.1%, the company said. Overall volume increased 17.9% with growth of 24.9% in the Prestige & Above segment, outpacing popular volume expansion of 10.7%.
“On a reported basis, personnel costs were 7.7% of sales, down 393 basis points. Other general expenses were 14.2% of sales, down 327 basis points due to the improved operating leverage on fixed costs,” he said.
Commenting on the results, Diageo India CEO Hina Nagarajan said, “Our business today is ahead of pre-pandemic levels, proving the resilience of our category.” Double-digit inflation, scotch supply constraints in some markets and a one-time special subsidy to its employees impacted EBITDA margin realization, it added.
During the outlook, Nagarajan said that in the near term, she expects inflationary pressures to continue. “Our confidence in the medium to long-term prospects of our industry, the resilience of our business and our ability to weather headwinds remain high,” she added.
The results fell after the close of market hours.