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United Spirits Cheers to 63.5% Profit Jump in Q3
United Spirits Ltd, a prominent liquor maker backed by Diageo, announced an impressive 63.5% surge in its consolidated net profit, reaching Rs 350.2 crore for the third quarter of 2023. This remarkable growth was driven by continued premiumisation and steady consumer demand.
Diageo-controlled liquor maker United Spirits Ltd (USL) announced a significant 63.5% increase in its consolidated net profit, reaching Rs 350.2 crore for the third quarter (Q3) that ended in December 2023. This marks a substantial growth compared to the net profit of Rs 214.2 crore recorded in the same quarter of the previous year, as per a regulatory filing from USL.
Revenue Growth and Sales Drivers
USL's revenue from operations also witnessed a rise of 5.32% during the quarter under review, climbing to Rs 6,962 crore. In the corresponding period of the previous fiscal year, the revenue stood at Rs 6,609.8 crore. The company attributes this sales growth to the ongoing trend of premiumisation and the resilience of consumer demand.
Expenses and Total Income
USL's total expenses for the December quarter saw a moderate increase of 3.6%, amounting to Rs 6,554.7 crore. Despite this rise in expenses, the company's total income experienced a growth of 5.77%, reaching Rs 7,014.1 crore. This notable income growth was driven by the company's diverse portfolio of brands, including McDowell's, Royal Challenge, Signature, Johnnie Walker, and Black Dog.
CEO's Perspective and Outlook
Hina Nagarajan, the CEO and Managing Director of USL, commented on the company's performance, highlighting their ability to deliver a resilient quarter amidst challenging market conditions. While sequential demand momentum remained relatively subdued, Nagarajan expressed reassurance in the ongoing premiumisation trend. She also emphasized the company's continued focus on consumer engagement through various festivals, the cricket World Cup, and the peak wedding season. Nagarajan further expressed cautious optimism regarding the company's growth prospects, citing sustained investments in brands, a strong belief in innovation and renovation, and the long-term potential of the Indian consumer market.
Stock Market Performance
On the stock market, United Spirits Ltd's shares closed at Rs 1,107.85 apiece on the Bombay Stock Exchange (BSE) on Tuesday. This represented a slight decline of 0.07% compared to the previous closing price.
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