Net sales for the quarter ended September rose 11.5% to Rs3,170 crore due to re-entry into Andhra Pradesh and a favorable base although growth was partly offset by policy changes in Maharashtra.
“We have delivered a strong quarter on topline and EBITDA growth and ended the first half in line with our expectations while navigating the regulatory headwinds in Maharashtra,” said Praveen Someshwar, managing director at Diageo India. “Looking ahead, the second half is the all-important festive, holiday and wedding season.”
Sales from the prestige and above segment, which includes premium brands including Johnnie Walker grew 12.4% and accounted for nearly 90% of total sales. The popular or mass segment grew 9.2%.
Gross profit rose 16.2%, while margins expanding 190 basis points to 47.1% which the company attributed to pricing actions, improved mix, cost efficiencies and stable input costs. EBITDA rose 32.5% to Rs672 crore, while margins improved 337 basis points to 21.2%.
On Thursday, shares of United Spirits closed 0.4% higher at Rs1,393 on the BSE.