21 OCT 2022

21 OCT 2022 Press release

Unaudited financial results for the quarter ended 30 September 2022

Second quarter performance highlights:

  • Net sales increased 17.7%, reflecting a strong quarter. Growth reflects resilient consumer demand in off-trade, rebounding in on-trade and continued mix improvement.
    • Prestige & Above segment net sales grew 23.1% benefitting from momentum of innovation and renovation done in prior quarters. The growth was broad-based and reflects the depth of our portfolio and the strength of our brands.
    • Popular segment net sales grew 1.7% within which the priority states grew 3.8%.
  • Gross margin was 39.5%, primarily reflecting the adverse impact of double-digit inflation in COGS.
  • Our marketing reinvestment rate during the quarter was 5.5% of net sales.
  • Reported EBITDA was Rs. 446 crores, up 4.8% and EBITDA margin was 15.5%. Underlying EBITDA excluding one-offs in prior year was up 11%.
  • Interest cost of Rs. 14 crore is on account of the customary non-debt related items.
  • Exceptional items primarily comprise a one-time profit of Rs. 381 crores arising from the the slump sale of the business undertaking associated with 32 brands in the ‘Popular’ segment.
  • Reported PAT, after incorporating the exceptional gain accruing from the slump sale transaction was Rs. 563 crores, up 105.9%.

First half performance highlights:

  • Net sales increased 24.3% lapping weak prior year comparators in Q1.
    • Prestige & Above segment net sales increased 30.8%. The growth was driven by resilient consumer demand in off-trade, mix improvement and continued growth momentum in on-trade.
    • Popular segment net sales increased 6.9% within which the priority states increased 9.6%.
  • Gross margin was 40.1%, primarily due to adverse impact of inflation on COGS.
  • A&P re-investment rate was 5.9% of sales.
  • Reported EBITDA was Rs. 720 crores, up 21%. Reported EBITDA margin was 14.3%, down 34 bps primarily due to reduction in gross margin and one-offs. Excluding the one-off’s, underlying EBITDA was at 14.8%, up 76 bps.
  • Reported interest cost of Rs.31 crores is on account of non-debt related items. Excluding the one-off reversal in prior year, underlying interest costs were down 25% driven by the zero-debt status in the current financial year.
  • Exceptional items primarily include a net one-time profit arising from the slump sale of the business undertaking associated with 32 brands in the ‘Popular’ segment partially offset by on-going business restructuring expense.
  • Profit after tax was Rs. 773 crores and PAT margin was 15.3%.

Performance highlights of select Popular brands sold and franchised to Inbrew Beverages Pvt. Ltd.

  • Net sales during the quarter included Rs. 351 crores from brands that are part of slump sale and franchise arrangement transaction closed with Inbrew. Net sales for this portfolio increased 2.9% during the quarter and were 697 crores for the first half, up 9.1% vs. prior year

Ms Hina Nagarajan, CEO, commenting on the quarter ended 30 September 2022 said:

“We have delivered a quarter of strong top-line growth and resilient bottom-line performance. The performance is underpinned by continued growth momentum and strong mix improvement from recent innovation and brand renovations.
We have successfully completed the sale of the business undertaking associated with 32 brands in the ‘Popular’ segment to Inbrew Beverages Pvt. Ltd. and have given effect to the franchise of 11 other brands for a period of five years. This is aligned to our mission and key to our “Portfolio Reshape Strategy”.

The external environment remained challenging during the quarter with ongoing scotch pricing negotiations in select states, route to market change in Delhi and unprecedented levels of input cost inflation. We maintained cost discipline while investing in long-term priorities.

Looking ahead, in the shorter term, we expect inflation challenges to continue. Scotch price discussions have successfully concluded in a few states. We are focused on maintaining the momentum while driving revenue growth management initiatives and ramping up productivity across the value chain. With the consumer at the heart of our business, the strength of our reshaped portfolio and the investment we are making to accelerate our strategic priorities, we are confident of growing the business in a consistent and sustainable way to create long-term value for all our stakeholders.”


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Richa Periwal

+91 98 3695 5288


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Rajalakshmi Azariah

+91 95 3587 3006


About United Spirits Limited

United Spirits Limited (“Diageo India”) is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo PLC. The company manufactures, sells and distributes an outstanding portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell’s No1, Smirnoff, Ketel One, Tanqueray and Captain Morgan.

Headquartered in Bengaluru, our wide footprint is supported by a committed team of over 3145 employees, 47 manufacturing facilities across states and union territories in India, a strong distribution network and a state-of-the-art Technical Centre.

Incorporated in India as United Spirits Limited (USL), the company is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. For more information about Diageo India, our people, our brands, and our performance, visit us at www.diageoindia.com. Visit Diageo’s global responsible drinking resource, http://www.DRINKiQ.com, for information, initiatives, and ways to share best practices.