United Spirits rallies nearly 5% after strong Q1 numbers

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter came in flat at ₹712 crore. Consolidated net sales during the quarter rose by 3.5% YoY to ₹2,761 crore. In its earnings statement, the company said that growth in standalone net sales was offset due to the timing of the men’s IPL matches.

For the quarter ended June 30, 2024, United Spirits reported an 8.3% YoY growth in standalone net sales to ₹2,352 crore. The total volume of sales during the quarter saw an uptick of 3.5% YoY to 1,36,99,000 cases.

On a standalone basis, United Spirits reported a 5.1% growth in the volume of the Prestige & Above (P&A) category to 1,15,39,000 cases while the Popular segment saw a decline of 4.5% during the quarter to 21,60,000 cases.

United Spirits reported that the P&A category accounted for 87.8% of the net sales and its value grew by 10.1 YoY to ₹2,066 crore. Meanwhile, the Popular category made up 9.4% of the net sales and its value fell by 2.4% YoY to ₹220 crore. The other category saw a 4.9% YoY fall in net sales to ₹66 crore.

United Spirits also announced that the company has invested ₹2.29 crore in V9 Beverages (Sober) for 1,972 Compulsory Convertible Preference Shares (CCPS) and 10 equity shares which is equivalent to 15% of the issued and paid-up share capital.

Additionally, the company also announced an investment in Indie Brews and Spirit’s Quaffine by subscribing to 4,016 CCPS and 10 equity shares for a 25% stake in the company for a consideration of ₹5 crore.

Shares of the company have risen by nearly 7% since the beginning of the year. The stock has gained over 8% in the past year.