India`s United Spirits profit doubles on one-off gain
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India's United Spirits Ltd said on Friday its quarterly profit more than doubled from a year earlier, driven by a one-off gain from the sale of some brands to Inbrew.
The Johnnie Walker whiskey maker said profit came in at 5.63 billion rupees ($67.83 million) for the three months ended Sept. 30, compared with 2.73 billion rupees a year earlier.
Analysts on average had expected a profit of 2.36 billion rupees, according to Refinitiv IBES data.
United Spirits, the Indian unit of top spirits maker Diageo, raked in a 3.72 billion rupee gain from the sale of 32 brands, including Haywards and Old Tavern, to Inbrew Beverages last May.
Before exceptional items and tax, profit rose 5% to 3.84 billion rupees. Total expenses were up 1%, as a cut in excise duty offset a near 49% jump in input costs. Overall revenue rose 1.3% to 8.25 billion rupees.
Margins in the liquor industry have been hit by surging inflation after a post-pandemic rebound, while scotch sales at companies like United Spirits have also been tempered by pricing issues in some states.
"Looking ahead, in the shorter term, we expect inflation challenges to continue," Chief Executive Officer Hina Nagarajan said in a statement.
($1 = 82.9960 Indian rupees)
