United Spirits Limited
Diageo India incorporated in India as United Spirits Ltd.(USL) is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo PLC. The company manufactures, sells, and distributes a wide portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No.1, Smirnoff and Captain Morgan.
Key Business
- Gin
- Liqueur
- Rum
- Tequila
- Vodka
- Scotch Whisky
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 11,321 | 10,612 | 9,712 |
| Sales Growth % | 6.69% | 9.26% | 19.44% |
| Expenses | 9,321 | 9,208 | 8,117 |
| Operating Profit | 2,000 | 1,404 | 1,595 |
| OPM % | 18% | 13% | 16% |
| Profit after tax | 1,408 | 1,126 | 811 |
| EPS in Rs | 19.36 | 15.62 | 11.40 |
Synopsis of Financials
- Muted demand momentum in Q3 compared to previous quarters
- Financial highlights of Q3 FY ’24 include strong price/mix, NSV growth, and EBITDA margin
- Impact of ENA inflation on gross margin partially offset by stability in other input commodities
Final Outlook
United Spirits reported that their Prestige & Above segment contributed 80.6% of net sales, with a 22.8% increase, aligning with their premiumisation strategy. Overall net sales grew by 10.1%, reflecting recovery in on-trade, sustained consumer demand in off-trade, and home consumption trends. Despite rising raw material costs, they achieved strong double-digit growth, benefiting from India’s economic growth and a young Legal Drinking Age demographic. With a focus on premiumisation, craft, and innovation, they aim to capitalize on market trends and invest in brand growth. Their Return on Capital Employed (ROCE) is the highest among peers.
United-Spirits-Limited-PDF-report