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Brewries & Distilleries company United Spirits announced Q4FY24 & FY24 results:
Q4FY24 Financial Highlights:
Consolidated:
- Q4FY24 Consolidated net sales value (NSV) was at Rs 2,783 crore, up 11.2% versus same period prior year. This was driven by the growth in the standalone business as well as income from the Indian Premier League.
- Q4FY24 Consolidated EBITDA was at Rs 334, crore, a growth of 41.6% versus prior year driven by the earlier start of the Indian Premier League 2024.
- Q4FY24 Consolidated Profit after tax was at Rs 241 crore
Standalone:
- Total NSV at Rs 2,666 crore increased 6.9% YoY driven by competitive performance of our renovation and innovation offerings and resilient consumer demand. Within the above, Prestige & Above segment grew 6.6%.
- NSV for the Popular segment grew 3.3% as the trademarks performed competitively in the salient states on the back of interventions.
- Gross margin at 43.3% was a contraction of 205 bps YoY on reported basis. After adjusting for a oneoff credit of Rs 69 crore on account of reversal of indirect tax provisions in Q4FY23, underlying gross margin expanded by 73bps YoY.
- A&P re-investment rate was 12.2% of sales, reflecting the spends on renovation and innovation as well as ongoing investment behind the brands.
- EBITDA at Rs 361 crore, an increase of 6.9% YoY. The EBITDA margin was 13.6%, in-line with prior year reported margin, though an expansion of 278 bps on an underlying basis.
- Interest cost at Rs 29 crore, was down 19.2%. After adjusting a one-off benefit of Rs 16 crore from the prior year comparator, interest cost was down 44.2%. The interest cost is on account of the customary non-debt related items.
- Exceptional charge of Rs 31 crore is on account of the ongoing supply agility programme.
- Profit after tax was Rs 384 crore with a net profit margin of 14.4%.
FY24 Financial Highlights:
Consolidated:
- Consolidated net sales value (NSV) at Rs 11,321 crore, up 14.2% YoY, in-line with growth in the standalone business.
- Consolidated EBITDA was at Rs 2,001 crore, growth of 53.5% YoY.
- FY24 consolidated profit after tax was at Rs 1,408 crore
Standalone:
- Total NSV at Rs 10,692 crore increased 10.5% YoY, driven by continued premiumisation and choiceful consumption with increased brand loyalty. While the consumer is rationalising social occasions, we are not witnessing meaningful downtrading. Within the above, Prestige & Above segment grew 11.9%.
- NSV for the Popular segment declined 2.5% compared to same period last year. This was primarily due to steep consumer price increases in a high demand elastic segment, driven by both higher excise duties in the segment’s salient state as well as price increases taken by the industry after a prolonged period of time.
- Gross margin was 43.4%, up 129 bps like-for-like versus last year. Underlying gross margin stood at 43.3%, after excluding the one-off benefit of Rs 13 crore driven by a write-back. This was an expansion
- of 189 bps on an underlying basis versus the prior year. The one-off credit in the previous year was on account of reversal of indirect tax provisions. The expansion was driven by headline pricing realisation flow-through, revenue growth management and cogs productivity initiatives partially offset by ENA inflation.
- A&P re-investment rate was 9.7% of sales as we continue to invest behind the brands.
- EBITDA at Rs 1,708 crore, an increase of 30.9% YoY. The reported EBITDA margin was 16.0%, up 249 bps versus prior year comparator. This was largely driven by gross margin expansion and productivity across the value chain. Underlying EBITDA margin stood at 15.9%, an expansion of 282 bps versus prior year comparator.
- Interest cost at Rs 76 crore, is down 26.9%. Underlying interest cost was at Rs 91 crore after excluding the one-off reversal benefit of Rs 15 crore This was a decrease of 24.0% versus prior year comparator. The one-off credit in the previous year was amounting to Rs 16 crore Interest cost is on account of customary non-debt related items.
- Exceptional charge of Rs 17 crore is on account of Rs 31 crore income from the prior year slump sale transaction recognised as income in Q2FY24 after completion of customary post-transaction closure obligations offset by a charge of Rs 48 crore related to the ongoing supply agility programme.
- Profit after tax was Rs 1,312 crore with a net profit margin of 12.3%.
Hina Nagarajan, CEO & Managing Director, commenting on the FY24 performance, said: “We have ended fiscal year 2023-24 delivering our double-digit growth guidance and returned to mid teen margins amidst challenging external environment. The year witnessed sequentially moderating demand on the back of sustained consumer inflation and post pandemic consumption normalisation. We have continued our premiumisation intent through innovation and renovation to secure future growth. Our most iconic trademark is being renovated and stretched upwards under the new “House of McDowell’s” umbrella that will see it reach new consumers in different sub segments and formats. In recognition of our commitment to sustainable, modern Made in India Luxury, Godawan 100 was recently crowned “Single Malt Whisky of the Year” at the London Spirits Competition, a premier event in the Global Beverage Alcohol industry. This sets the stage for us to enter the new fiscal year with even more confidence in our strategy.
We are immensely proud of the Royal Challengers Bengaluru Women’s Premier League (WPL) team, which is owned by our 100% subsidiary, Royal Challengers Sports Private Limited (RCSPL), winning the 2 nd edition of the WPL in March 2024.
The Board of Directors have recommended a final dividend of Rs 5.0 per share for the financial year 2023-24, subject to Shareholder’s approval. Looking ahead, our focus is to sustain the momentum established in the last three years and stay committed to our consumer-focused future-back strategy, while creating long term value for all our stakeholders.”
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