USL, which produces and sells around 80 million cases in India, has reported 11.9% increase in volumes in FY22 over the previous year.
The company has reported a 12.14% decline in net profit for the fourth quarter of 2021-22 to Rs 178.6 crore because of exceptional items. These include impairment of an inter-company loan provided to Pioneer Distilleries Ltd, together with interest, impairment of fixed assets in certain operationally closed manufacturing units, and accelerated charge pertaining to unamortised brand/license fee, according to the company.
Net sales increased 9.5% in Q4, lapping a strong year driven by resilient consumer demand in off-trade and gradual on trade recovery, the company said in a statement.
Within the segments, the Prestige & Above now accounts for nearly three-fourths of the company’s overall sales. Its net sales grew 15.3% benefitting from premiumisation, ongoing portfolio renovation and accelerated momentum in states with the route to market unlock, while net sales of Popular segment, which accounted for 26.2% of net sales, rose 1.1%.
Prestige & Above volumes, too, grew 8.8% outpacing the Popular volume expansion of 1% during the quarter ended March.
Margins took a hit in Q4. The gross margin was at 41.7%, down 220 basis points, impacted by rising inflation partly offset by favourable product mix and productivity savings, the company said.
Shares of United Spirits closed 2.4% higher on Friday before the announcements were made as compared with 1.13% gain in the benchmark Nifty 50 index.