Delhi
,
October 24, 2022
(press release)
–
Key Highlights: * Net sales increased 24.3% lapping weak prior year comparators in Q1. * Gross margin was 40.1%, primarily due to adverse impact of inflation on COGS. * A&P re-investment rate was 5.9% of sales. * Reported EBITDA was
* Excluding the one-off’s, underlying EBITDA was at 14.8%, up 76 bps. Original Press Release:
Second quarter performance highlights: - Prestige & Above segment net sales grew 23.1% benefitting from momentum of innovation and renovation done in prior quarters. The growth was broad-based and reflects the depth of our portfolio and the strength of our brands. - Popular segment net sales grew 1.7% within which the priority states grew 3.8%. - Prestige & Above segment net sales increased 30.8%. The growth was driven by resilient consumer demand in off-trade, mix improvement and continued growth momentum in on-trade. - Popular segment net sales increased 6.9% within which the priority states increased 9.6%. About
Headquartered in Bengaluru, our wide footprint is supported by a committed team of over 3145 employees, 47 manufacturing facilities across states and union territories in
Incorporated in
Source: Diageo India [Category: Social Media, Financial Results]
* Net sales increased 17.7%, reflecting a strong quarter. Growth reflects resilient consumer demand in off-trade, rebounding in on-trade and continued mix improvement.
* Gross margin was 39.5%, primarily reflecting the adverse impact of double-digit inflation in COGS.
* Our marketing reinvestment rate during the quarter was 5.5% of net sales.
* Reported EBITDA was
* Interest cost of
* Exceptional items primarily comprise a one-time profit of
* Reported PAT, after incorporating the exceptional gain accruing from the slump sale transaction was
First half performance highlights:
* Net sales increased 24.3% lapping weak prior year comparators in Q1.
* Gross margin was 40.1%, primarily due to adverse impact of inflation on COGS.
* A&P re-investment rate was 5.9% of sales.
* Reported EBITDA was
* Reported interest cost of
* Exceptional items primarily include a net one-time profit arising from the slump sale of the business undertaking associated with 32 brands in the ‘Popular’ segment partially offset by on-going business restructuring expense.
* Profit after tax was
Performance highlights of select Popular brands sold and franchised to
* Net sales during the quarter included
Ms
“We have delivered a quarter of strong top-line growth and resilient bottom-line performance. The performance is underpinned by continued growth momentum and strong mix improvement from recent innovation and brand renovations.
We have successfully completed the sale of the business undertaking associated with 32 brands in the ‘Popular’ segment to
The external environment remained challenging during the quarter with ongoing scotch pricing negotiations in select states, route to market change in
Looking ahead, in the shorter term, we expect inflation challenges to continue. Scotch price discussions have successfully concluded in a few states. We are focused on maintaining the momentum while driving revenue growth management initiatives and ramping up productivity across the value chain. With the consumer at the heart of our business, the strength of our reshaped portfolio and the investment we are making to accelerate our strategic priorities, we are confident of growing the business in a consistent and sustainable way to create long-term value for all our stakeholders.”
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