United Spirits (UNITDSPR) Q2 24/25 earnings summary

Executive summary

• Net sales value declined marginally by 0.8% year-on-year, with the PNA segment flat at 0.3% growth, reflecting muted demand and ongoing disruptions in a key northern state.

• Consolidated revenue from operations for H1 FY25 was ₹12,910 crores, up from ₹12,545 crores year-over-year.

• Consolidated net profit for H1 FY25 stood at ₹826 crores, compared to ₹816 crores in H1 FY24.

• Margin performance exceeded expectations, supported by benign commodity inflation and productivity initiatives.

• H1 FY25 was weak, but optimism remains for H2, driven by festive season, commercial plans, and recent innovations.

Financial highlights

• Gross profit for the quarter was INR 1,285 crores, with a gross margin of 45.2%.

• EBITDA stood at INR 507 crores for the quarter, up 7.9% year-on-year, with an EBITDA margin of 17.8%.

• Q2 FY25 consolidated revenue from operations was ₹6,672 crores, compared to ₹6,737 crores in Q2 FY24.

• Q2 FY25 consolidated net profit was ₹341 crores, versus ₹339 crores in Q2 FY24.

• Andhra Pradesh contributed INR 25 crores in sales revenue after re-entry in late September.

Outlook and guidance

• Double-digit growth for the PNA segment is reaffirmed for the full fiscal year, contingent on a strong festive season.

• H2 is expected to outperform H1, with growth driven by new launches, commercial execution, and Andhra Pradesh market re-entry.

• Margin expansion is expected to moderate as the company invests more in brand building and innovation.

• Management continues to focus on core business growth and rationalization of non-core assets.

• Ongoing legal and regulatory matters may impact future financials, but management believes in a strong case for recoveries.