United Spirits reports 4.3% profit decline in Q3 amid higher expenses
INDIA – United Spirits Ltd. (USL), a leading beverage alcohol company in India, has posted a 4.3 percent decline in consolidated net profit for the third quarter ending December 2024, reporting a profit of Rs 335 crore (US$38.8M).
The decline was attributed to increased expenses and severance costs related to the closure of a unit.
Despite the dip in net profit, USL recorded a 14.4 percent year-on-year (YoY) growth in consolidated net sales, reaching Rs 3,433 crore (US$398.4M) in Q3 FY24, driven by resilient consumer demand during the festive season and rapid scaling operations in Andhra Pradesh.
On a standalone basis, net sales stood at Rs 3,432 crore (US$398.2M) , with the prestige & above segment contributing 89.2 percent of total sales and witnessing a 16.1 percent growth.
The company’s consolidated revenue from operations during the quarter increased to Rs 7,732 crore (US$897.2M) compared to Rs 6,962 crore (US$807.9M) in the same quarter last year.
Total net sales for the period grew 14.8 percent, reflecting strong demand for premium products and favorable market conditions.
At the operating level, the company’s EBITDA rose 17 percent YoY to Rs 568 crore from Rs 486.5 crore (US$56.5M), with EBITDA margins improving to 16.6 percent from 16.2 percent in the corresponding period of the previous fiscal year.
The popular segment recorded a 9.6 percent rise in net sales, aided by value-righting measures and duty reductions in key markets.
Hina Nagarajan, CEO and Managing Director of USL, expressed optimism about the company’s performance during the festive season, stating, “Amidst a moderate but sequentially improving demand environment, we have delivered a quarter in line with our aspirations buoyed by the festive season and fast scale-up in the state of Andhra Pradesh.”
Looking ahead, Nagarajan said the company remains cautiously optimistic in the short term but remains committed to the long-term potential of India’s consumer market.
Earlier this year, Diageo India announced that Nagarajan would transition to a new role on Diageo’s Global Executive Committee.
Praveen Someshwar, former MD and CEO of HT Media, will succeed her as CEO of USL starting March 1, 2025.
Someshwar brings extensive experience leading digital, print, and radio outlets, including Hindustan Times and Mint.
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