UNITED SPIRITS NET PROFIT RISES 86% TO ₹153 CR IN Q2

BENGALURU: United Spirits Ltd (USL), India’s largest liquor maker, on Thursday said standalone net profit rose 86% in the quarter ended September, helped by a strong performance by its premium brands. Profit rose to ₹153.1 crore in the three months from ₹82.5 crore a year ago. Revenue rose to ₹6,245.1 crore from ₹6,051.2 crore, the company owned by Diageo Plc said in a filing with the BSE.

The apex court’s decision to prohibit all liquor sales within 500 metres of state and national highways last year has hurt sales volumes across the alcoholic beverage industry. In July, USL said the impact of the ban will spill over into the next two quarters, i.e. until December, albeit to a lesser extent. On Thursday, USL reiterated that the impact of the ban will continue to ease and business will return to normal by the end of the December quarter.

“In the second quarter, we have delivered strong underlying net sales growth of 4% driven by 12% growth in the prestige and above segment, despite the impact of the highway ban,” CEO Anand Kripalu said.

USL’s biggest competitor in India, French liquor firm Pernod Ricard SA, also said that the disruption from the highway ban has started to ease. Gradual improvement is expected on this front starting in the October-December quarter, Pernod said in its September quarter sales update on October 19.

Sales growth in USL’s prestige and above segment—which includes brands like McDowell’s No.1, Royal Challenge, Antiquity and Signature—was fuelled by the firm’s brand renovation and premiumisation strategy, the company said.