United Spirits reports 0.5% growth in profit amid soft demand 

INDIA – United Spirits Ltd., one of India’s prominent beverage alcohol companies, reported a slight increase of 0.5 percent in its consolidated net profit to Rs 341 crore (US$40.55M) for the second quarter ending September 30, 2024.  

This marginal profit growth, compared to Rs 339 crore (US$40.3M) in the same period last year, reflects a challenging demand environment, the company noted in a regulatory filing. 

The company’s consolidated revenue from operations experienced a 0.96 percent decrease, reaching Rs 6,672 crore (US$793.5M) in Q2 FY25, down from Rs 6,737 crore (US$801.3M) in the corresponding period of the previous fiscal year.  

United Spirits CEO & Managing Director, Hina Nagarajan, acknowledged the impact of the softer-than-expected demand, but expressed optimism about the upcoming festive season, highlighting the positive effects of renewed business operations in Andhra Pradesh after a five-year gap. 

“This reinforces our faith in the overall health and long-term fundamentals of the spirits industry and business in India. Our key focus remains on executional excellence to deliver sustained profitable growth, while maintaining the long-term competitiveness of our portfolio,” Nagarajan added. 

In the first half of FY25, United Spirits reported a 3.1 percent increase in standalone net sales, reaching Rs 5,195 crore (US$617.8M) , with growth largely driven by the company’s innovative product offerings.  

Gross margin also improved, standing at 44.9 percent, up 137 basis points year-on-year, as the company leveraged pricing adjustments and efficiency initiatives to counterbalance commodity inflation.  

Profit after tax for the half-year reached Rs 634 crore, with a net profit margin of 12.2 percent. 

In July 2024, the company acquired minority stakes in V9 Beverages and Indie Brews and Spirits, targeting emerging trends in non-alcoholic beverages and coffee liqueurs. 

United Spirits invested Rs 22.9 million (US$272.4M) for a 15 percent stake in V9 Beverages, a zero-alcohol spirit brand established in 2020, and Rs 50 million (US$594.7M) for a 25 percent stake in Indie Brews and Spirits.  

Additionally, United Spirits expanded into agave-based spirits by acquiring a 15% stake in Inspired Hospitality, producer of the Pistola agave-spirit brand, for Rs 56 million (US$666M) in April 2024. 

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