INDIA: United Spirits H1 profits up as premium brands prosper
- First-half net profits rise 15.3% to INR2.1bn (US$33.1m)
- H1 net sales fall 1.1% to INR42.3bn
- Operating profits flat at INR6.1bn
- H1 volumes flat
United Spirits saw its profits grow in H1
The Bangalore-based division, controlled by Diageo since July, said net profits in the six months to the end of September rose by 15.3% to INR2.1bn (US$33.1m), as sales edged up by 1.1% to INR42.3bn. Operating profits in the six months were flat at INR6.1bn, the company announced late Friday (8 November).
In Q2, net profits jumped by 140% to INR942.7m, while sales fell by 8.2% to INR20.4bn. Operating profits in the three months leapt by 21% to INR2.7bn, while volumes were flat.
The company had seen a drop in net profits in its first quarter.
During Q2 the group's “prestige and above” brands grew volumes by 21%, while sales by value in this segment were up 27%. These brands now represent around 28% of its overall volumes, it said.
However, United Spirits said extra neutral alcohol prices continue to “unfavourably impact” its business. The group is also still being affected by “skewed order placement” in Tamil Nadu which it says is favouring brands from local vendors at the cost of its brands.
Seperately, the company's board has agreed to sells its Poonamallee distillery to Enrica Enterprises Private Limited for INR1.25bn.
To read the company's full statement, click here.
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