Regulatory hangover continues to take toll on United Spirits in Q3

Change in distribution impacted volumes; firm working to cut costs

United Spirits (USL), the producer and distributor of prominent liquor brands such as Royal Challenge, Antiquity, and Johnnie Walker, disappointed the Street with its December 2017 quarter (Q3) results.
 
In fact, the subsidiary of London-based Diageo — the world’s largest producer of spirits — lagged behind expectations on several counts.
 
The share price of USL fell over eight per cent intra-day on Wednesday before closing down seven per cent at Rs 3,489.
 
The regulatory environment continues to take a toll on the company’s performance. This time it was a change in norms (route-to-market; impact on distribution) in