Q2 2025 United Spirits Ltd Earnings Call Transcript
Key Points
- United Spirits Ltd (BOM:532432) has commenced business in Andhra Pradesh after a five-year gap, which is expected to contribute significantly to sales.
- The company is optimistic about achieving double-digit growth in the P&A segment for the full fiscal year, driven by strong commercial plans and innovations.
- Margin performance exceeded expectations due to benign commodity basket inflation and effective cost management strategies.
- United Spirits Ltd (BOM:532432) has launched several new products and flavors, including Smirnoff Vodka's new flavors and the X series from McDowell, which have been well-received.
- The company has expanded its presence in the Indian single malt category with Godawan, which has won numerous awards and is being distributed more widely.
- Overall net sales value declined marginally year-on-year, with the P&A segment remaining flat, reflecting a muted demand environment.
- A major route to market disruption in a key northern state has impacted performance and may continue to affect future quarters.
- The top-end market segment is lagging behind the middle segment, indicating a shift in consumer spending patterns.
- Despite the reopening of the Andhra Pradesh market, it may take 18 to 24 months to reach its previous sales contribution levels.
- The company faces ongoing challenges with high ENA inflation, which remains in the double digits, affecting overall cost structures.
Ladies and gentlemen, good day. And welcome to the United Spirits Limited Q2 FY '25 earnings conference call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call? Please signal an operator by pressing start and zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Shweta Arora, Head of Investor Relations, United Spirits Limited. Thank you and over to you, ma'am.
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Thank you. Good evening, everyone. Welcome to United Spirits second quarter and first half ended September 2024 earnings call. Today on the call we have with us, our managing director and CEO Ms. Hina Nagarajan, who is joined by our CFO and executive director, Mr. Pradeep Jain.
As always, we will kick off today's call with Hina sharing her
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