Diageo’s India unit reports 52% leap in quarterly profit
United Spirits, Diageo’s Indian subsidiary, has reported a sharp rise in first-quarter profit, fuelled by robust demand for its premium spirits portfolio.
The spirits maker and distributor of brands including Johnnie Walker, Antiquity, Black & White whisky and Tanqueray gin said standalone net profit rose 51.6% to 3.91bn rupees (£30.27m) in the three months to 30 June, up from 2.58bn rupees (£19.98m) rupees a year earlier.
Revenue for the quarter increased 5% year-on-year to 61.13bn rupees, while operating expenses rose 4.6%.
Growth was led by the company’s premium portfolio, with net sales in the segment rising 10.1% from a year earlier. Premium brands accounted for 91.7% of United Spirits’ net sales during the quarter.
Commenting on the company’s performance, Praveen Someshwar, CEO and managing director, United Spirits, said, “We have commenced fiscal 2027 on a strong note with double-digit growth in the Prestige & Above segment.
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“Our consumer centric interventions give us confidence to increase growth further as the year progresses. We continue to future-proof our portfolio while creating enduring value for all our stakeholders.”
Karnataka reforms
Analysts at Jefferies had expected the company to benefit from improved performance of its McDowell’s brand following a relaunch, as well as recent tax changes in the southern Indian state of Karnataka.
Karnataka, one of India’s largest alcohol markets, announced in March that it would abolish government price controls and introduce a strength-based excise taxation system from April. The changes, which took effect on 11 May, allow alcohol producers greater flexibility to set prices while reducing tax rates on premium spirits.
The reforms are expected to support demand for higher-end liquor brands in the state.
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