McDowell turnover up by 19 pc, PBT 141 pc

Bangalore, Apr 28 (UNI) McDowell and Company today announced a 19 per cent increase in sales in the last fiscal at Rs 1,380 crore, up from Rs 1,155 crore in the previous fiscal.

The company, in a release here, said Bagpiper Whisky, owned by Herbertsons Limited, the company's subsidiary, was now the world's largest selling whisky with over 10.5 million cases.

Earnings before interest, depreciation, tax and amortisation (EBIDTA) have soared to Rs 172.9 crore from Rs 95.3 crore in the fiscal, an increase of 81 per cent.

''This sterling performance is also reflected in the results of the last quarter, ending March 31, 2006, - EBIDTA is up at Rs 49.3 crore - a 95 per cent increase from Rs 25.3 crore achieved in the comparable period of FY05,'' the company said.

Profit Before Tax for the year was up 141 per cent at Rs 78.8 crore, compared to Rs 32.7 crore in the previous year. Post-tax profit at Rs 51.3 crore was 92 per cent higher than the previous year.

The company's issue of Global Depositary Shares (GDS) of US Dollar 100 million was oversubscribed 2.4 times. Allocation was, however, limited to US Dollar 130 million. The issue of Foreign Currency Convertible Bonds (FCCBs) of US Dollar 100 million was also over-subscribed 1.15 times. The proceeds of both these issues amounting to over Rs 1,000 crore have been deployed primarily for the repayment of loans taken to effect the acquisition of Shaw Wallace and Company Limited.

Consequent to the acquisition of Shaw Wallace, McDowell had obtained approval of the relevant stock exchanges for the first phase of the merger process involving a consolidation of the operating spirits companies, viz. Herbertsons Ltd, Triumph Distillers and Vintners Ltd, Shaw Wallace Distilleries Ltd, Baramati Grape Industries Ltd and United Distillers India Ltd, with McDowell and Co Ltd to form United Spirits Limited (USL).

A proforma combination of the results of the operating companies for last year indicated that USL's sales was 59.2 million cases, compared to 56.1 million cases in the comparable 12-month period of fiscal 2005. The aggregate turnover and EBIDTA of the liquor business of the operating entities of USL stood at Rs 2,210 crore and Rs 280 crore respectively for fiscal 2006.

Volumes of McDowell's lead brands have grown ten per cent from 19.9 million cases to 22 million cases during FY06. Low-end brand sales were deliberately de-emphasised by the company in keeping with the intent of driving value rather than volume. While Spirits costs have come down from the peak prices of FY05, the company would continue its focus on the main line brands. Consequently, overall sales volumes for the current year stood at 25.4 million cases, compared to 25.1 million cases in FY05, a marginal increase of one per cent.

UNI VK RG HVB1739