INDIA – United Spirits Ltd (USL), a subsidiary of Diageo, has announced a commendable 63.5% increase in its consolidated net profit for the third quarter of 2023, reaching Rs 350.2 crore (US$42.11M).  

This substantial growth stands in stark contrast to the net profit of Rs 214.2 crore (US$25.76M) recorded during the same quarter the previous year, as disclosed in a regulatory filing from USL. 

The company’s revenue from operations also experienced a positive trajectory, witnessing a 5.32% rise during the reviewed quarter, reaching Rs 6,962 crore (US$838.29M).  

In comparison, the revenue stood at Rs 6,609.8 crore (US$794.75M) in the corresponding period of the previous fiscal year. USL attributes this sales growth to the prevailing trend of premiumization and the resilient demand from consumers. 

Total expenses for the December quarter saw a moderate increase of 3.6%, totaling Rs 6,554.7 crore. Despite this rise in expenses, the company’s total income demonstrated a noteworthy growth of 5.77%, reaching Rs 7,014.1 crore (US$843.36M). 

The growth in income is credited to USL’s diverse portfolio of brands, including McDowell’s, Royal Challenge, Signature, Johnnie Walker, and Black Dog. 

Hina Nagarajan, CEO and MD of USL, expressed satisfaction with the company’s performance, stating, “We have delivered a resilient quarter in a challenging macro environment. While the sequential demand momentum was relatively muted, reassuringly, the premiumization trend continues.” 

Nagarajan cautiously expressed optimism about the company’s growth prospects, highlighting sustained investments in brands, a commitment to innovation, and belief in the long-term potential of the Indian consumer market. 

Emphasizing the focus on consumer engagement, Nagarajan mentioned ongoing efforts tied to various festivals, the cricket World Cup, and the peak wedding season. 

In November 2023, USL revealed plans to cease operations at a manufacturing unit in Uttar Pradesh, India, as part of a multi-year supply chain agility program.  

The decision, based on factors such as market conditions and cost-effectiveness, is aimed at helping the company streamline its operations, focus on core brands, enhance productivity, and better adapt to changing market dynamics. 

As United Spirits Ltd continues its robust performance, the company’s strategic decisions and commitment to consumer engagement position it well for sustained success in the competitive spirits market. 

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