In Short:
Diageo India (United Spirits) reported Q2FY25 revenue at ₹6,672 crore, slightly down from ₹6,737 crore last year. Net profit fell to ₹341 crore, down from ₹485 crore last quarter. Despite a 0.8% YoY decline in NSV, CEO Hina Nagarajan remains optimistic due to the reopening of Andhra Pradesh and plans for profitable growth in the spirits industry.
Diageo India Reports Q2 Results: A Mixed Bag
Diageo India (operating as United Spirits Ltd), the proud subsidiary of the renowned British liquor behemoth Diageo, has just unveiled its financial performance for the second quarter of FY25. The company reported a consolidated revenue from operations of ₹6,672 crore, marking an increase from ₹6,238 crore in the preceding quarter and slightly below the ₹6,737 crore achieved in Q2 of the previous year.
Net Sales Value and Year-on-Year Trends
On the bright side, the consolidated net sales value (NSV) bumped up to ₹2,843 crore this quarter, up from ₹2,761 crore last quarter. However, on a year-on-year basis, it experienced a slight downturn of 0.8%. This decline can largely be attributed to the normalisation of prior extraordinary growth in the first quarter and a high baseline from the previous year due to festive inventory buildups. Moreover, the overall demand environment has been relatively muted.
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Net Profit and EBITDA Insights
Turning to profitability, Diageo India’s consolidated net profit for the quarter ending in September reached ₹341 crore, a drop from ₹485 crore in the last quarter. Meanwhile, the consolidated EBITDA fell to ₹502 crore this quarter compared to ₹713 crore in Q1FY25. However, it’s worth noting that the year-on-year growth stands at an impressive 7.4%.
The overall NSV saw a subtle decline of 0.8% compared to the last year, while the NSV within the prestige and above segment remained largely stable with a modest growth of 0.3% YoY.
CEO’s Outlook on Future Growth
Sharing her thoughts on the quarterly performance, Hina Nagarajan, CEO & Managing Director, remarked, “This quarter has been a bit muted amidst a softer-than-expected demand environment. However, we’re optimistic as we approach the festive season, especially with the reopening of business in Andhra Pradesh after nearly five years. This reinforces our confidence in the strong long-term fundamentals of the spirits industry in India. Our primary focus remains on executing our strategies to ensure sustained profitable growth and maintain the competitiveness of our product portfolio.”
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Sales Volume Performance
The company’s sales figures tell a story of cautious optimism—during this quarter, Diageo sold 15,414 cases, an increase from 13,699 cases in the previous quarter but down from the 16,130 cases recorded in Q2 of the last fiscal year.
Half-Year Performance Overview
Looking at the bigger picture, during the first half of FY25, the consolidated net sales totaled ₹5,605 crore, representing a 1.3% increase year-on-year. Consolidated EBITDA for this period was ₹1,215 crore, reflecting a year-on-year growth of 2.9%, while the consolidated PAT stood at ₹826 crore. Throughout this six-month period, the company sold a total of 29,113 cases.
