USL Toasts Sales Bump In Fiscal Q1

Dan Marsteller
Posted: July 20, 2010

India’s United Spirits Ltd (USL), part of the UB Group, enjoyed a
sales increase of 18% to INR14.6 billion ($309m) in the three months
through June, as volumes rose 6% to 26.7 million cases, the company
reported. Operating profit was also up substantially for USL—aided by
lower raw materials costs—although net profit fell 32% to INR1.21
billion ($25.6m), compared against a previous-year period in which USL
benefited from a one-off share sale.

USL’s volume gain may have been more substantial but for destocking in
Andhra Pradesh ahead of a recent auction for retail liquor licenses in
the province. The company estimated that the destocking held up
shipments by as much as 2.74 million cases.

In line with its stated intention of deriving more value via
premiumization in an Indian spirits market still dominated by low-cost
offerings, USL unveiled a new premium variant—McDowell’s No 1 Platinum
Whisky—during the quarter, which it says has been well-received. The
group also said it upped its advertising and sales promotion spend
markedly in the last three months over the same period in 2009.

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