INDIA: FY losses widen at Diageo's United Spirits
- FY net losses of INR44.9bn (US$742.7m)
- Net sales in 12 months to end of March up 1% to INR105bn
- Operating losses come in at INR34bn
Diageo's United Spirits finally reported its full-year results today
United Spirits has reported full-year net losses of INR44.9bn (US$742.7m), partly due to a significant writedown from the sale of its Whyte & Mackay business.
The Bangalore-based firm, which is majority-owned by Diageo, disclosed today that exceptional items in the 12 months to the end of March totalled INR32.4bn. United Spirits flagged that the proceeds from the sale of W&M to Emperador Inc will be “insufficient” to repay intra-company loans it had taken when it acquired the Scotch whisky producer in 2007.
The loss of INR45bn compares to losses of INR1bn in the same period a year earlier.
Sales in the full-year were nearly flat, up by 1% to INR105bn, while operating losses came in at INR34bn, compared to operating profits of INR11.4bn the prior year.
United Spirits has delayed the reporting of its results after blaming problems with debtors and outstanding loans. Today, the unit said it has launched an inquiry into the various disputed loans and has made a provision of US$108m to cover the funds. The loans were given to other companies within United Spirits' parent company, The UB Group.
United Spirits' board has not recommended a dividend on the company's equity shares based on the full-year losses.
To read the company's full statement, click here.
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