India: United Spirits report over two-fold jump in consolidated net profit for Q2

United Spirits on October 27 reported over two-fold jump in consolidated net profit at Rs 286.4 crore for the second quarter ended September 2021 helped by a double-digit growth in sales.

The Diageo-controlled liquor maker posted a net profit of Rs 125.1 crore in July-September a year ago, United Spirits Ltd (USL) said in a regulatory filing.

Revenue from operations was up 9.31 per cent to Rs 8,208.8 crore during the quarter under review as against Rs 7,509.4 crore in the year-ago period.

"We have delivered a strong quarter and the performance underpins improved momentum across the business. The business has emerged stronger from the pandemic and our people have responded with pace, agility, and creativity to seize the opportunities in the marketplace,” Diageo India CEO Hina Nagarajan said.

The quarter witnessed the rollout of the renovated consumer bundles of Black Dog and Signature Whisky in select states to an encouraging response, she said.

During the quarter, USL's off-trade gained momentum as the second wave of the pandemic started receding, while on-trade continues to gradually recover with the easing of restrictions.

Prestige & Above segment net sales grew 20.8 per cent. Delivered high double-digit Scotch whisky growth during the quarter, USL said adding its “popular segment net sales remain flat compared to the same quarter of the previous year.”

Total expenses were at Rs 7,822.9 crore in the quarter, up 6.52 per cent as against Rs 7,343.8 crore earlier.

On the outlook, Nagarajan said: “We are focused on sustaining the growth momentum while working on Revenue Management and productivity initiatives across the value chain to counter the rising inflation trend being experienced while exiting the quarter.”

"Our portfolio, with recent innovations and renovations, is well-positioned to capitalize on the rapidly growing premiumization in the category and we remain committed to profitable growth and long-term value to all our stakeholders," she said.

Shares of USL on October 27 settled at Rs 885.50 apiece on BSE, up 6.28 per cent from the previous close.

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