United Spirits sees Q1 net loss, Paul Walsh quits board

United Spirits reported a loss and sliding sales in its first quarter

United Spirits has continued its sluggish performance with a first-quarter net loss and fall in sales.

The Diageo-controlled Indian spirits firm reported today that net losses in the three months to the end of June came in at INR555.6m (US$9.1m) compared to profits of INR118.13m in the same period the prior year. Sales in its first quarter slid by 11% to INR19.2bn.

Operating profits fell by 56% to INR1.2bn.

Last month, the company, which Diageo took majority control of in July, belatedly reported full-year net losses of INR44.9bn (US$742.7m).

United Spirits also said that former Diageo CEO Paul Walsh has resigned from its board as of today. Meanwhile, Nick Blazquez, Diageo's Africa & Asia-Pacific president, has temporarily joined the unit's board until the next AGM. 

The company has also approved the sale of its Malkajgiri unit in Andhra Pradesh and its Palakad unit in Kerala.

Separately, United Spirits confirmed it is continuing its investigation into various disputed loans given to other companies owned by United Spirits' parent company, The UB Group.  

United Spirits also said it will hold an extraordinary general meeting on 29 November, over the fact it has lost 50% of its "peak net worth" over the past four years. The meeting is being held in accordance with India's Sick Industrial Companies Act.