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Breweries & Distilleries company United Spirits announced Q1FY25 results:
Consolidated:
- Consolidated net sales at Rs 2,761 crore, grew by 3.5%. The growth in standalone business was offset by the timing of men’s IPL matches.
- Consolidated EBITDA was at Rs 713 crore almost flat from prior year comparators.
- Q1FY25 consolidated Profit after tax was at Rs 485 crore
Standalone:
- Net sales at Rs 2,352 crore increased 8.3% year on year, driven by improved footprint & saliency of our innovation and renovation offerings and revenue growth management interventions. Within the above, Prestige & Above segment grew 10.1%.
- Net sales for the Popular segment fell 2.4% YoY, as inflation continues to impact the price sensitive consumer of this segment.
- Gross margin was 44.5%, up 85 bps versus last year. Excluding the one-off benefit of Rs 13 crore driven by a write-back in the base quarter, gross margin expanded 145 bps over the previous year on the back of sustained revenue growth management interventions and productivity flow-through.
- A&P re-investment rate was 7.4% of sales reflecting the seasonally low quarter for the business; however, higher than the prior year comparator.
- EBITDA at Rs 458 crore, an increase of 18.9% over same period last year.
- EBITDA margin was 19.5%, up 174 bps versus last year. Excluding the one-offs from the prior year comparatives, EBITDA margin expanded 234 bps year-on-year. This was largely driven by gross margin expansion, partly off-set by the higher A&P spends and fixed cost operating leverage.
- Interest cost at Rs 22 crore Excluding the one-off reversal benefit of Rs 15 crore in the base quarter, interest cost was up 12.8% versus same period previous year.
- Profit after tax was Rs 299 crore with net profit margin at 12.7%.
Hina Nagarajan, CEO & Managing Director, commenting on the Q1FY25 performance, said: “We have commenced fiscal 2025 with a steady performance in the first quarter. Our renovation and innovation offerings are rolling out progressively with an encouraging response.
Looking ahead, we remain focused on enhancing the long-term competitiveness of our portfolio, and to sustainably deliver in a soft demand environment and harness every opportunity to create long-term value for all our stakeholders.”
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