INDIA: United Spirits' premium brands boost Q1 profits
- Q1 net profits up 5% to INR1.4bn (US$25.2m)
- Net sales rise 6.6% to INR20.7bn (US$372.4m)
- Operating profits (EBITDA) rise 3.3% to INR3.5bn (US$63m)
- Subsidiary Whyte & Mackay sees Q1 loss of GBP1.83m (US$2.87m)
Premium brands helped boost United Spirits' profits in Q1
United Spirits has reported a slight rise in Q1 profits year-on-year helped by sharp sales growth for its premium brands.
Net profits rose 5% to INR1.4bn (US$25.2m) in the three months to 30 June, the company said today (30 July). Sales were up 6.6% to INR20.7bn, while EBITDA increased 3.3% to INR3.5bn.
Overall volumes were up 2% year-on-year to 31.3m cases. The Vijay Mallya-owned group said its perfomance was boosted by 17% year-on-year sales growth for its premium brands, to about 8m cases. Its flagship brand, McDowell’s No.1, saw sales growth of 16%.
However, the company said performance in its key markets of Tamil Nadu and West Bengal were dragged down in the period by tax and duty rises.
Meanwhile, the group's Scotch whisky subsidiary, Whyte & Mackay, reported a GBP1.83m (US$2.87m) loss before tax, as net sales fell 10.7% in Q1 to GBP33.77m.
Last month, Whyte & Mackay spoke exclusively to just-drinks in seeking to quell reports that it was suffering from cash-flow issues.
Shares in United Spirits are currently up 7% at INR771 on the Bombay Stock Exchange.
To view United Spirits' first-quarter statement, click here
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