News

United Spirits hails Diageo's brands for H1 sales boost, appoints CFO

Most popular

Another drinks CEO steps down - But, why?

Pernod Ricard Performance Trends 2014-2018 - data

What's coming up in soft drinks in 2019?

What's coming up in spirits in 2019? - Predictions

MORE
  • Half-year net profits come in at INR9.49bn (US$144.9m) on INR860m loss a year earlier
  • Net sales in six months to end of September rise by 8.5% to INR41.51bn
  • Operating profits (EBITDA) leap by 39% to INR5.2bn

Diageo's United Spirits unit has reported a lift in both half-year and second-quarter sales, with the parent company's brands being credited with driving the rises.

United Spirits began producing and selling Diageos brands in India earlier this year

United Spirits began producing and selling Diageo's brands in India earlier this year

The division, which came under Diageo's majority control last year, said earlier this week that net sales in the six months to the end of September were up by 8.5%. In the second quarter, sales increased by 6%.

Volumes from the 'Prestige and Above' spirits segment climbed by 7% in the half-year, while the mainstream 'Popular' stable saw volumes dip by 5%. Sales in both value an volume terms were "positively impacted by the Diageo portfolio integration especially in the second quarter", said USL.

The performance comes after USL's shareholders approved at the start of the year the proposal to allow the Indian firm to produce and sell its parent company's brands in the country. In December last year, however, the proposal had been rejected by shareholders.

CEO Anand Kripalu said yesterday: “Our fiscal-2016 half-year results are starting to show the dividends of our comprehensive strategic plan focused behind our power brands with a clear prioritised geographical participation strategy. Our EBITDA delivery - before taking into account the exception gain on the UBL share sales - remains robust and in line with our expectations for the period."

USL also announced on Monday the appointment of a new, permanent CFO. Sanjeev Churiwala will assume the position on 16 November, the unit said. Churiwala, who has held the same role at Ambuja Cements since 2011, replaces Vinod Rao, Diageo's Asia Pacific finance director, who filled in on an interim basis after Pathai Murali stepped down in April.

To read the company's official results statement, click here.


Related Content

United Spirits: “We knew it would be complicated” - Diageo CEO

United Spirits: “We knew it would be complicated” - Diageo CEO...

How did Beam Suntory and Suntory Holdings perform in their H1? - results data

How did Beam Suntory and Suntory Holdings perform in their H1? - results data...

Diageo has completed

Diageo has completed "non-core" brands clear-out - CFO...

Sales slow in Q3 for United Spirits as demonetisation drags - results

Sales slow in Q3 for United Spirits as demonetisation drags - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?