United Spirits Ltd, a leading liquor manufacturer controlled by Diageo, saw its shares rise over 5% in Wednesday’s trading session. This boost came after the company reported a strong financial performance for the first quarter that ended on June 30, 2024.
United Spirits Q1 Results
The company announced a 1.7% year-on-year increase in consolidated net profit, reaching ₹485 crore, compared to ₹477 crore in the same period last year. Consolidated net sales also grew by 3.5%, from ₹2,667 crore to ₹2,761 crore.
At the operating level, the company reported an unchanged consolidated EBITDA of ₹713 crore. The EBITDA margin for the quarter was 25.8%, slightly lower than the 26.7% reported in the corresponding period of the previous fiscal year.
Standalone net sales increased by 8.3% year-on-year to ₹2,352 crore, driven by an improved market presence, innovative product offerings, and effective revenue growth management. The ‘prestige & above’ segment showed a notable 10.1% increase, while the ‘popular’ segment saw a 2.4% decline, attributed to inflation affecting price-sensitive consumers.
The company’s gross margin improved to 44.5%, an increase of 85 basis points from the previous year. Excluding a one-off benefit of ₹13 crore from a write-back in the base quarter, the gross margin expanded by 145 basis points, aided by ongoing revenue growth strategies and productivity enhancements.
United Spirits Share Price
As of 11:05 AM, United Spirits’ shares were trading 5.30% higher at ₹1,402.55 on the NSE, reflecting investor optimism in the company’s growth trajectory and market performance.
