United Spirits Q1 Results FY2023, PAT at Rs. 210 crores

On 26th July 2022, United Spirits announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The company reported its net sales at Rs. 2169 crores with a growth of 34.3 % YoY. This double-digit top-line growth reflects strong consumer demand in off-trade, recovery in the on-trade channel, active portfolio management, and benefits from the soft comparator. 

- EBITDA was reported at Rs. 274 crores with a growth of  63.5% YoY and EBITDA Margin was reported at 12.6%

- The company reported its PAT at Rs. 210 crores with a growth of 204.2%

Business Highlights:

- The Prestige & Above segment accounted for 71% of net sales during the quarter, up by 5ppts compared to the same period last year. Prestige & Above segment net sales increased by 43.7% during the year due to improved product mix and soft prior period comparators. During the year, the Premium and Luxury portfolio grew faster than the Prestige portfolio led by United Spirit’s premiumization drive. Within the Scotch portfolio, Johnnie Walker, Black & White, and Black Dog delivered very strong growth.

- The Popular segment accounted for 26% of net sales during the quarter, down by 5ppt compared to the same period last year. The Popular segment's net sales grew by 13.1% during the year. Net sales of the Popular segment in priority states grew by 17.1% during Q1FY23.

Commenting on the results, Ms. Hina Nagarajan, CEO of United Spirits said: “We have delivered another quarter of steady performance in a challenging operating environment. Our business today is ahead of pre-pandemic levels, substantiating the resilience of our category. Double-digit inflation, scotch supply constraints in select markets, and a one-time special grant to our people in recognition for their outstanding contribution in extremely challenging times, impacted the EBITDA margin delivery. Looking ahead, in the shorter term, we expect inflationary pressures to continue. Our confidence in the medium to long-term prospects of our industry, the resilience of our business, and our ability to navigate headwinds remain high. We remain focused in our strategy of re-shaping the portfolio towards premiumization, revenue growth management initiatives, enhancing our value chain productivity pipeline, and continuing to build the organization of tomorrow, to deliver consistent growth and long-term value creation for all our stakeholders.”