1. Liquor ban fails to hurt United Spirits as profits soar 44 pct

Liquor ban fails to hurt United Spirits as profits soar 44 pct

Diageo-controlled United Spirits on Sunday reported a 44% rise in net profit for the quarter ending June 30 to touch Rs 63 crore owing to certain price revision on some of its brands.

By: | Bengaluru | Published: July 24, 2017 5:28 AM
Diageo-controlled United Spirits on Sunday reported a 44% rise in net profit for the quarter ending June 30 to touch Rs 63 crore owing to certain price revision on some of its brands.

Diageo-controlled United Spirits on Sunday reported a 44% rise in net profit for the quarter ending June 30 to touch Rs 63 crore owing to certain price revision on some of its brands. However, the company said sales were impacted due to the Supreme Court ban of liquor near highways. United Spirits reported a net profit of Rs 62.9 crore for the quarter ended June as compared to Rs 43.8 crore a year ago.The net revenue stood Rs 5,816.8 crore as compared to Rs 6,485.2 crore in the quarter ending March, 2017. The reported net sales declined by 10% on a sequential basis impacted primarily by the highway ban.

The EBITDA for the company came in at Rs 157 crore which was a decline of 26% on a year on year basis. The EBITDA margins were down 162 bps to 8.8%, with the primary cause being the decline in sales. The gross margins were up by 265 bps to 46% which was driven by price increases, productivity initiatives and operating model changes. “Performance in the first quarter as expected was impacted by the highway ban, which led to lower consumption due to a reduced number of retail outlets…” CEO Anand Kripalu said.

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