A sobering reality for alcobev makers despite spirited volume gains

Raw material pressures, lack of pricing power key worries for Street despite spirited volume gains

The April-June quarter (first quarter, or Q1) of 2022-23 (FY23) performance of the alcoholic beverage (alcobev) sector was a mixed one - revenues came above expectations, margin performance was subpar. 

On a low base, the combined revenue growth of the three large listed players —  United Breweries (UBL), Radico Khaitan (Radico), and United Spirits (USL) — was 61 per cent.
 

Higher sales were driven by strong volumes. Growth was led by UBL, which reported a 121 per cent uptick over the year-ago quarter, followed by USL (up 25 per cent) and Radico Khaitan (14 per cent).
 

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