-KH News Desk (cbedit@imaws.org)
United Spirits Ltd., an Indian producer of domestic beverages, reported a quarterly profit decline of 64.4% on Tuesday as a result of higher input prices, falling sales, and a one-time charge.
For the three months that concluded on December 31, the distiller of Johnnie Walker whisky posted a profit of 1.11 billion rupees ($13.61 million), down from 3.11 billion rupees the year prior.
Due to the high cost of extra neutral alcohol and soda ash, the sector has struggled. Meanwhile, as a result of rising natural gas prices required to make glass, bottle prices have climbed.
The scotch manufacturer in Bengaluru had a quarter-over-quarter 25% decline in revenue to 66.12 billion rupees and a 10% decline in net sales to 2.78 billion rupees. Input costs rose by 4.6%, although the company claimed a one-time cost of 1.51 billion rupees.
United Spirits CEO Hina Nagarajan remarked that she anticipates inflationary problems to continue in the near future. The Diageo PLC-backed company sold 32 brands to Inbrew Beverages in May of last year, including Haywards and Old Tavern.
Tuesday’s quarterly results were preceded by a 1.5% decline in share price.
