INDIA – United Spirits Ltd (USL), a Diageo-controlled liquor manufacturer, has reported a two-fold increase in consolidated net profit for the March quarter, reaching Rs 241 crore (US$28.99M).  

This represents more than a two-fold rise from the Rs 102 crore (US$12.27M) posted in the same period last year, according to the company’s regulatory filing. 

USL’s revenue from operations saw a notable increase of 12.41 percent during the quarter, rising to Rs 6,511 crore (US$783.24M) from Rs 5,792 crore (US$696.75M) a year earlier. The company’s total expenses for the March quarter also grew by 10.9 percent to Rs 6,279 crore (US$755.33M).  

The consolidated net sales value (NSV) for the quarter was Rs 2,783 crore (US$334.78M), marking an 11.2 percent increase. Additionally, the total income of USL climbed 14 percent to Rs 6,622 crore (US$796.59M). 

The Prestige and premium liquor segment of USL demonstrated strong performance, with net sales increasing by 6.6 period in March and accounting for 86.6 percent of net sales.  

Meanwhile, the popular segment contributed 11.6 percent to net sales, experiencing a 3.3 percent growth in the fourth quarter of 2024. 

For the financial year ending March 31, 2024, USL’s net profit rose by 25.04 percent to Rs 1,408 crore (US$169.37M), compared to Rs 1,126 crore (US$135.45M) the previous year. However, the company’s revenue from operations for the fiscal year decreased by 6.46 percent, totalling Rs 26,018 crore (US$3.1B). 

Hina Nagarajan, CEO & Managing Director of Diageo India said: “We have ended fiscal year 2023-24 delivering our double-digit growth guidance and returned to mid-teen margins amidst a challenging external environment. The year witnessed sequentially moderating demand on the back of sustained consumer inflation and post-pandemic consumption normalisation.” 

Nagarajan also highlighted USL’s focus on premiumization and innovation, saying, “We continue to innovate and renovate to secure future growth. Our most iconic trademark is being renovated and stretched upwards under the new ‘House of McDowell’s’ umbrella to reach new consumers in different sub-segments and formats.” 

In a separate filing, USL announced that its board has recommended a final dividend of Rs 5 (US$0.060) per equity share (face value Rs 2 each) for the financial year. This decision underscores the company’s commitment to returning value to its shareholders. 

In addition to its financial results, USL expanded its presence in India through the acquisition of a 15 percent stake in Pistola brand maker, Inspired Hospitality.  

USL will subscribe to 3,494 Compulsory Convertible Preference Shares (CCPS) and 10 equity shares of Pistola, constituting approximately 15 percent of the paid-up shares of Pistola. This strategic move aims to strengthen USL’s position in the premium craft segment. 

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