United Spirits Q3 results: Net profit falls 11%, sales dip 4%


United Spirits Ltd (USL), the nation’s largest liquor firm, mentioned web sales fell about 4% within the third quarter ended December however demand has improved sequentially after gradual on-trade restoration.

The proprietor of McDowell‘s No.1 and Royal Challenge whiskey manufacturers mentioned web profit fell 11.16% at the same time as gross margin rose 24 foundation factors, helped by benign commodities.

“The reported revenue decline of 3.6% in the third quarter reflects improving consumer sentiment over previous quarters, notwithstanding on-premise footfalls still being low, the route to market change in Andhra Pradesh and taxation led price hikes post Covid-19. Operational resilience, contextual marketing with focus on in-home occasions and renovation of our core brands supported the top-line recovery,” mentioned Anand Kripalu, CEO of USL.

Net sales in its Prestige and Above phase – which has mid-segment and premium manufacturers corresponding to McDowell’s No 1, Royal Challenge, Johnnie Walker and Vat 69 – declined 0.8% partially on account of lapping a excessive festive season comparative, the corporate mentioned.

Net sales within the Popular phase – which has mass-market manufacturers corresponding to Haywards, Bagpiper and White Mischief – declined 6.7% total led by a decline of 5.7% in precedence states on account of elevated client costs impacting the demand on this price-conscious phase coupled with unfavourable state combine.

“Despite a quicker rebound than originally expected, in the near term, there are still reasons to remain cautious and consequently, the company is not providing quantitative guidance for fiscal 2021,” added Kripalu.

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