Diageo-controlled liquor maker United Spirits (USL) on Friday said it had completed the “strategic review” of its select famous liquor brands, and has chosen to sell and franchise this portfolio to a third party. USL’s famous portfolio contains around 30 entry-level lower-valued liquor brands, with an average cost not as much as Rs 400 for a 750 ml bottle, and straddle whisky, rum, brandy, vodka and gin. The company had posted a net profit of ~203.3 crore in the year-prior period, as per a regulatory filing.
Net profit declines
“We have just concluded the strategic review of the select popular brands and the board has approved the sale and franchising of this portfolio to an unrelated third party. This is a significant move to enable sharpened focus on ‘Prestige and Above’ and reshape our portfolio to help deliver our growth mission,” USL’s Chief Executive Officer Hina Nagarajan said.
The company reported a 12.14 per cent decline in consolidated net profit at Rs 178.6 crore for the fourth quarter ended March 31, as margins were impacted by rising inflation.
“Gross margin was 41.7 per cent, down 220 bps (basis points), impacted by rising inflation partly offset by favourable product mix and productivity savings,” USL said in an earnings statement.
However, its revenue from operations was up 1.16 per cent at Rs 7,767.3 crore during the quarter under review. In the same period a year ago, it stood at Rs 7,678.1 crore.
Total expenses were at Rs 7,429.4 crore in the latest March quarter compared to Rs 7,392.2 crore in the same period a year ago.
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