On January 23, 2024, United Spirits Limited (BSE, NSE: UNITDSPR) announced its Q3 2023-24 results, with consolidated NSV up by 8.0% and EBITDA growing by 30.8%.
Table of Content
Overall Result Takeaways
United Spirits Limited, a key player in the segment of Distilleries and Breweries, has shown optimal performance in Q3 FY24. The prominent subsidiary under the helm of Diageo India released the following overall results:
- In terms of consolidated results, Net Sales Value (NSV) stood at ₹3,002 Cr and EBITDA was at ₹487 Cr.
- NSV for the quarter was up by 8.0% and EBITDA was up by 30.8%.
- In terms of Net Sales Value, the segment of Prestige and Above witnessed growth saliency at 88%.
Additional Read: Q3 Results Dashboard
Highlights in Detail – Standalone and Consolidated Performance Highlights
United Spirits Limited has released consolidated and standalone performance highlights and these are mentioned below:
- Consolidated Performance Highlights
- For Q3 FY24, the consolidated Net Sales were at ₹3,002 Cr., a rise of 8.0% YoY, aligned with the growth witnessed in the Company’s standalone business.
- The consolidated EBITDA was at ₹487 Cr., marked by a growth of 30.8% YoY.
- The consolidated PAT (Profit After Tax) for Q3 FY24 was at ₹350 Cr.
- Standalone Performance Highlights
- For Q3 FY24, the Net Sales were at ₹2,989 Cr, up by 7.5% on a YoY basis, driven by consistent premiumisation, and solid consumer demand. The Prestige and Above segment accounted for 10% of the Net Sales.
- In terms of the Popular segment, Net Sales witnessed a decline of 12.4%, mainly due to demand being sluggish. Increases in duties further adversely affected the demand for this segment.
- The Q3 FY24 Gross Margin was at 43.4%, an increase of 286 bps compared to the previous fiscal year.
- The A&P re-investment rate for Q3 FY24 was 11% of Sales. This was a reflection of the Company’s brand investment at the time of the Cricket World Cup and seasonality factors.
- EBITDA stood at ₹491 Cr, a rise of 33.6% YoY. The EBITDA Margin was 16.4%, a rise of 321 bps against the previous fiscal.
- The PAT or Profit After Tax was ₹348 Cr and the Net Profit Margin stood at 11.6%.
The Management’s Take on Q3 Results
The CEO and MD of United Spirits Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company has delivered a quarter marked by resilience in a largely disadvantageous macroeconomic quarter.
- The momentum of sequential demand continued to be muted, but the premiumisation of the Company’s promoted brands witnessed progress.
- Q3 FY24 experienced strong consumer engagement, especially during festival periods, the Cricket World Cup, and the Indian wedding season.
- The Company’s investment in more brands continues as its views positive prospects for the future.
Additional Check: United Spirits Limited Share Price
Q3 FY24 Result Summary
United Spirits Limited operates under the helm of the parent, Diageo India, which is among India’s top alcoholic beverage companies. Diageo India, in turn, operates under the umbrella of the global, and a subsidiary of global Diageo PLC. The Company is engaged in the business of manufacturing, selling, and distilling stellar alcoholic brands like Black Dog, Johnnie Walker, VAT 69, Black & White, Antiquity, The Singleton, Signature, Royal Challenge, Captain Morgan, Smirnoff, McDowell’s No1, Tanqueray, Ketel One, and Godawan, which is an artisanal single malt whisky made in India. The Company has its headquarters in Bengaluru with a staff of more than 3,000 people. It also boasts 37 facilities of manufacturing across the length and breadth of India. With a robust network of distribution, the Company is heading for success.
Considering that Q3 FY24 was a financially weak quarter all around the globe, the Company has witnessed some segment-wise growth. The Company has seen a rise in Net Profit (almost 64% up) against the previous fiscal year’s same quarter and this is a positive sign for the Company’s road ahead.
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Source: United Spirits Press Release on BSE
