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United Spirits: Premium brands aid Q4 show

Company is in talks with central govt to minimise impact and is also considering higher prices

Sheetal Agarwal  |  Mumbai 

Investors cheered a healthy operational performance by United Spirits Ltd (USL) in the March quarter (Q4) and pushed the stock up 11 per cent intra-day on Wednesday. Despite a fall in overall volumes and sales, higher value products grouped under the prestige and above segment (brands such as McDowell's No 1, Royal Challenge, Signature) grew at a healthy clip. This segment contributes 58 per cent to total revenue and has helped offset a decline in the entry or popular segment.  A host of factors, including prohibition in Bihar, demonetisation and the highway ban issue ...

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United Spirits: Premium brands aid Q4 show

Company is in talks with central govt to minimise impact and is also considering higher prices

Investors cheered a healthy operational performance by United Spirits Ltd (USL) in the March quarter (Q4) and pushed the stock up 11 per cent intra-day on Wednesday. Despite a fall in overall volumes and sales, higher value products grouped under the prestige and above segment (brands such as McDowell's No 1, Royal Challenge, Signature) grew at a healthy clip. This segment contributes 58 per cent to total revenue and has helped offset a decline in the entry or popular segment. A host of factors, including prohibition in Bihar, demonetisation and the highway ban issue pulled down revenue of the popular segment. A strong show by the prestige and above segment reflects the continuing trend of premiumisation, which has helped operating profit. Even as revenue fell 1.1 per cent to ~2,014 crore, margins expanded 730 basis points (bps) to 12.6 per cent. Excluding one-offs, sales grew a decent seven per cent. Gross margin improvement and lower employee and other expenses aided profit. This, .. Investors cheered a healthy operational performance by United Spirits Ltd (USL) in the March quarter (Q4) and pushed the stock up 11 per cent intra-day on Wednesday. Despite a fall in overall volumes and sales, higher value products grouped under the prestige and above segment (brands such as McDowell's No 1, Royal Challenge, Signature) grew at a healthy clip. This segment contributes 58 per cent to total revenue and has helped offset a decline in the entry or popular segment.  A host of factors, including prohibition in Bihar, demonetisation and the highway ban issue ... image
Business Standard
177 22

United Spirits: Premium brands aid Q4 show

Company is in talks with central govt to minimise impact and is also considering higher prices

Investors cheered a healthy operational performance by United Spirits Ltd (USL) in the March quarter (Q4) and pushed the stock up 11 per cent intra-day on Wednesday. Despite a fall in overall volumes and sales, higher value products grouped under the prestige and above segment (brands such as McDowell's No 1, Royal Challenge, Signature) grew at a healthy clip. This segment contributes 58 per cent to total revenue and has helped offset a decline in the entry or popular segment.  A host of factors, including prohibition in Bihar, demonetisation and the highway ban issue ...

image
Business Standard
177 22