Industry news
United Spirits Q1 sales jump
Last updated: 20 July 2010
India's United Spirits has
reported a strong rise in first quarter sales with operating profits boosted by
lower costs for raw materials. Net sales for the three months to the end of June rose by 18% on the same
period of last year, to INR14.6bn (US$313m), United Spirits said today (20
July). Volume sales rose at a slower rate - by 6% to 26.7m cases - partially
reflecting consumers trading up to more expensive spirits but also due to
destocking in the state of Andhra Pradesh. The Vijay Mallya-owned spirits group, which accounts for around two thirds of
India's spirits market by volume, said it was pleased with a good start to the
year. Lower raw materials costs boosted operating profits, it said. "Spirit costs
during the quarter have come off the high of the previous fiscal as a
consequence of better availability in the market place. "The prices are expected to remain at or around this level during the ensuing
quarter and trend downwards once the produce from the new crushing comes into
the market." Operating profits (EBITDA) rose by 25% for the quarter, to INR2.9bn. However, net profits fell to INR1.2bn compared to INR1.77bn in the first
quarter of last year, which was boosted by a one-off gain from the sale of
shares. Operating profits at Whyte &
Mackay, United Spirits' Scotch whisky subsidiary, rose to GBP5.9m (US$9m)
for the quarter, from GBP5.44m a year earlier.
