United Spirits (UNITDSPR) Q3 24/25 earnings summary

Executive summary

• Net sales value (NSV) grew 14.8% year-over-year for Q3 FY25, with Prestige & Above (P&A) segment up 16.1%.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on January 23, 2025.

• The company operates in beverage alcohol and sports franchise segments, with consolidated results including subsidiaries and joint ventures.

• Innovations like Don Julio tequila, McDowell’s X-Series, and Smirnoff Indian flavors received strong consumer response.

• Leadership transition planned, with new CEO Praveen joining in March and a six-week overlap for smooth handover.

Financial highlights

• Standalone revenue from operations for Q3 FY25 was ₹7,731 crore, up from ₹6,949 crore in Q3 FY24; consolidated revenue was ₹7,732 crore, up from ₹6,962 crore year-over-year.

• Gross profit for the quarter was INR 1,535 crores, with a gross margin of 44.7%, up 131 bps sequentially.

• EBITDA grew 19.7% year-over-year to INR 588 crores, with an EBITDA margin of 17.1%.

• Standalone net profit for Q3 FY25 was ₹473 crore, compared to ₹347 crore in Q3 FY24; consolidated net profit was ₹335 crore, compared to ₹350 crore year-over-year.

• Exceptional items included a charge of ₹65 crore for severance costs related to a closed unit.

Outlook and guidance

• Confident of achieving double-digit P&A growth for the full year, including Andhra Pradesh.

• Full portfolio YTD nine-month growth at 7.5%; may fall short of double-digit for the total portfolio.

• Cautious optimism on short-term demand; mid- to long-term outlook remains positive.

• Management believes receivables from a major customer are good and recoverable, with a high probability of success in ongoing arbitration.