United Spirits Shares Dip over 5% Post Q3 Result

Indian home-grown beverage maker United Spirits Ltd. announced a quarterly profit decline of 64.4% on Tuesday due to rising input costs, declining sales, and a one-time charge.

The distiller of Johnnie Walker whisky reported a profit of 1.11 billion rupees ($13.61 million) for the quarter that ended on December 31, a decrease from 3.11 billion rupees the year before.

The industry has struggled with the high price of additional neutral alcohol and soda ash. In the meantime, bottle costs have increased as a result of rising natural gas costs needed to produce glass.

The Bengaluru-based scotch producer's quarterly revenue dropped by 25% to 66.12 billion rupees, while net sales dropped by about 10% to 2.78 billion rupees.

The business claimed a one-time cost of 1.51 billion rupees, while input costs increased by 4.6%.

Hina Nagarajan, CEO of United Spirits, stated that she expects inflationary challenges to persist in the near future.

Haywards and Old Tavern were among 32 brands sold to Inbrew Beverages by the Diageo PLC-backed firm in May of last year.

Ahead of the quarterly results on Tuesday, shares decreased by around 1.5%.