Stellar Q1FY24 results: Breweries & distilleries stock jumps over 6 per cent!

The net sales amounted to Rs 2,668 Crore, registering a robust growth of 28.6 per cent on a rebased comparison with the previous year.

On Friday, the shares of United Spirits Limited surged 6.24 per cent, the stock hits fresh 52-week high mark of Rs 1043.95 per share on BSE. The scrip witnessed a massive spurt in volume by more than 8.40 times.

The reason for this surge is that the company declared their Q1FY24 financial results.

Highlights of Q1FY24 Performance (Consolidated):

• The net sales amounted to Rs 2,668 Crore, registering a robust growth of 28.6 per cent on a rebased comparison with the previous year. The strong growth was primarily driven by the exceptional performance of the standalone business and a substantial increase in revenue attributed to the new five-year media rights cycle (2023-27) of the Indian Premier League.

• The operating profit reached Rs 714 Crore, showcasing remarkable growth of 129.4 per cent on a rebased comparison with the prior year.

• Q1FY24 Profit after tax stood at Rs 477 Crore, underscoring the company's strong financial performance during the quarter.

Looking at standalone Q1FY24 results, the net sales soared to Rs 2,172 Crore, marking a remarkable 17.4 per cent growth compared to the previous year. This growth was driven by ongoing premiumisation trends and the success of innovative and renovated offerings. Notably, the Prestige & Above segment saw a substantial growth of 21.2 per cent.

The reported EBITDA amounted to Rs 385 Crores, exhibiting an impressive 83.5 per cent increase on a rebased comparison with the prior year. The reported EBITDA margin significantly improved by 638 basis points. Furthermore, the company achieved a Profit after tax of Rs 238 Crores, with a net profit margin of 11 per cent.

These results demonstrate the company's strong growth trajectory, improved profitability, and successful strategies in meeting market demands during Q1FY24.

Hina Nagarajan, CEO & Managing Director, commenting on the Q1FY24 performance, said: “We have commenced fiscal 2024 with a robust first quarter performance. While inflationary pressures remain, our strategy to reshape the portfolio combined with revenue growth management and focus on everyday efficiency is driving sustainable growth across the Prestige & Above segment. I am happy to share that Royal Challengers Sports Private Limited (RCSPL)’s, our wholly-owned subsidiary, has stepped up its earnings, driven by revenues from the Indian Premier League new media rights cycle. This reinforces our longer-term confidence in the Women’s Premier League. Our Sports business aligns to our core purpose of celebration and is a vital component of our consolidated portfolio. Further, we are progressing well on our Society 2030 goals through our holistic ESG focus and “Diageo in Society” initiatives. Looking ahead, our priority is to maintain the growth momentum and to deliver long-term value to all our stakeholders.”

Diageo India originally known as United Spirits Ltd. (USL), holds a dominant position as the foremost beverage alcohol company in India and operates as a subsidiary of the renowned global leader, Diageo PLC. The company is involved in the production, sales, and distribution of an extensive array of premium brands, including iconic names such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No.1, Smirnoff, and Captain Morgan. With its diverse portfolio of premium offerings, Diageo India has solidified its position as a key player in the Indian alcoholic beverages market.

The company has delivered impressive returns of over 74 per cent in the past 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.