Diageo's India unit posts higher quarterly profit on premium demand
Diageo's India unit posts higher quarterly profit on premium demand July 22 - United Spirits UNSP.NS, Diageo's DGE.L India unit that distributes Johnnie Walker and Antiquity whiskies, reported a 51.6% rise in its first-quarter profit on Wednesday, boosted by demand for its premium brands.
The company posted standalone profit of 3.91 billion rupees ($40.49 million) for the quarter ended June 30, compared with 2.58 billion rupees a year ago.
Here are key details:
United Spirits' quarterly revenue rose 5% to 61.13 billion rupees from a year ago, while expenses climbed 4.6%.
Analysts at Jefferies expected the alcohol brand to benefit from the performance of McDowell's after its brand relaunch and from the lower taxation on premium liquor in Karnataka.
Karnataka, one of India's highest-tax alcohol markets, said in March it would scrap government price controls and shift to strength-based excise taxation from April, allowing companies to set prices while cutting tax slabs.
The new tax bracket came into effect on May 11.
Net sales in United Spirits' premium segment, which includes Black & White whisky and Tanqueray gin, rose 10.1% year-on-year and accounted for 91.7% of net sales during the first quarter.
($1 = 96.5650 Indian rupees)
(Reporting by Mridula Kumar in Bengaluru; Editing by Harikrishnan Nair and Shreya Biswas)