UB Group: United Spirits Not Cut EBITDA Guidance For Whyte & Mackay

10th Jun 2010 10:44

BANGALORE (Dow Jones)--United Breweries Group Thursday denied a television report that its United Spirits Ltd. (532432.BY) unit has cut Whyte & Mackay Ltd.'s operating profit guidance for this financial year. "We have not issued any guidance (on Whyte & Mackay's EBITDA). We are going through a review now and at the end of it we'll provide a guidance," Ravi Nedungadi, chief financial officer of UB Group, told Dow Jones Newswires. He was responding to a CNBC-TV18 report, citing a research note from a foreign brokerage, that the company has cut Whyte & Mackay's EBITDA (earnings before interest, tax, depreciation and amortization) guidance to GBP35 million from GBP55 million following the expiry of a bulk scotch whisky supply contract with Diageo PLC (DEO). The contract, which according to analysts constituted 30% of Whyte & Mackay's EBITDA, expired last December. United Spirits, part of Indian liquor baron Vijay Mallya's United Breweries Group and owner of Whyte & Mackay, is yet to replace the Diageo contract. Prakash Mirpuri, senior general manager for corporate media relations at United Breweries Group, said the company is yet to decide on how much more bulk scotch whisky it will sell and the amount it wishes to retain to build up inventory of mature scotch for future branded sales. United Spirits shares fell as low as 7.6% on the report. But by 0934 GMT, the stock had pared losses and was trading just 0.93% lower at INR1,213.60 on the Bombay Stock Exchange. The benchmark Sensex was up 1.4%. By Rumman Ahmed, Dow Jones Newswires; 91-9845104173; [email protected] (END) Dow Jones Newswires June 10, 2010 05:44 ET (09:44 GMT)