Capitaline

Results 30-Jul-22

Analysis

United Breweries

OP up 178%

United Breweries consolidated net sales increased 117.85% to Rs 2438.71 crore in Q1Fy23 compared to Q1FY22. Sales of Beer segment has gone up 96.12% to Rs 5,188.74 crore (accounting for 99.86% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 6.69% to Rs 7.34 crore (accounting for 0.14% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 180.23% to Rs 285.36 crore. PBIT of Beer segment rose 158.15% to Rs 293.96 crore (accounting for 103.01% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose 28.57% to Rs -8.60 crore (accounting for -3.01% of total PBIT).

Operating profit margin has jumped from 8.54% to 10.91%, leading to 178.42% rise in operating profit to Rs 266.14 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.79% to 54.31%. Purchase of finished goods cost fell from 3.86% to 1.44%. Employee cost decreased from 10.40% to 6.12%. Other expenses fell from 30.26% to 27.26%.

Other income rose 69.32% to Rs 10.43 crore. PBIDT rose 171.81% to Rs 276.57 crore. Provision for interest fell 78.50% to Rs 0.83 crore.

PBDT rose 181.68% to Rs 275.74 crore. Provision for depreciation rose 4.27% to Rs 57.6 crore.

Profit before tax grew 411.47% to Rs 218.14 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 55.64 crore, compared to Rs 11.71 crore. Effective tax rate was 25.51% compared to 27.46%.

Minority interest increased 720% to Rs 0.41 crore. Net profit attributable to owners of the company increased 424.73% to Rs 162.09 crore.

Promoters’ stake was 72.71% as of 30 June 2022 ,compared to 72.71% as of 30 June 2021 . Promoters pledged stake was 14.45% as of 30 June 2022 ,compared to 14.45% as of 30 June 2021.

Full year results analysis

Net sales of United Breweries have increased 37.60% to Rs 5838.44 crore. Sales of Beer segment has gone up 28.92% to Rs 13,094.04 crore (accounting for 99.77% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 3.36% to Rs 29.88 crore (accounting for 0.23% of total sales).

Operating profit margin has jumped from 8.98% to 11.93%, leading to 82.81% rise in operating profit to Rs 696.62 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.21% to 46.55%. Purchase of finished goods cost rose from 1.73% to 3.37%. Employee cost decreased from 11.42% to 9.00%. Other expenses fell from 31.68% to 29.10%.

Other income fell 40.72% to Rs 29.79 crore. PBIDT rose 68.42% to Rs 726.41 crore. Provision for interest fell 34.80% to Rs 14.78 crore. Loan funds declined from Rs 261.97 crore as of 31 March 2021 to Rs 9.74 crore as of 31 March 2022. Inventories declined from Rs 1,136.68 crore as of 31 March 2021 to Rs 935.81 crore as of 31 March 2022. Sundry debtors were lower at Rs 1,254.86 crore as of 31 March 2022 compared to Rs 1,394.99 crore as of 31 March 2021. Cash and bank balance rose to Rs 909.68 crore as of 31 March 2022 from Rs 469.28 crore as of 31 March 2021. Investments rose to Rs 8.35 crore as of 31 March 2022 from Rs 6.06 crore as of 31 March 2021 .

PBDT rose 74.15% to Rs 711.63 crore. Provision for depreciation fell 6.39% to Rs 217.19 crore. Fixed assets declined from Rs 2,071.80 crore as of 31 March 2021 to Rs 2,016.35 crore as of 31 March 2022. Intangible assets stood at Rs 6.45 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 67.13% to Rs 775.70 crore. PBIT of Beer segment rose 67.31% to Rs 840.80 crore (accounting for 108.39% of total PBIT). PBIT of Non-Alcoholic Beverages segment fell 69.49% to Rs -65.10 crore (accounting for -8.39% of total PBIT).

PBIT margin of Beer segment rose from 4.95% to 6.42%. PBIT margin of Non-Alcoholic Beverages segment fell from negative 132.86% to negative 217.87%. Overall PBIT margin rose from 4.56% to 5.91%.

Profit before EO grew 179.93% to Rs 494.44 crore. The company reported nil EO items during the period compared to net EO expense of Rs 7.22 crore. PBT after EO was up 192% to Rs 494.44 crore. Provision for tax was expense of Rs 128.36 crore, compared to Rs 55.58 crore. Effective tax rate was 25.96% compared to 32.81%.

Minority interest increased 1.64% to Rs 0.62 crore. Net profit attributable to owners of the company increased 222.79% to Rs 365.46 crore.

Equity capital stood at Rs 26.44 crore as of 31 March 2022 to Rs 26.44 crore as of 31 March 2021. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 72.71% as of 31 March 2022 compared to 57.72% as of 31 March 2021. Promoters pledged stake was 14.45% as of 31 March 2022 compared to 18.20% as of 31 March 2021.

The scrip is currently trading at Rs 1537

United Breweries : Consolidated Results
Particulars	2206 (03)	2106 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	2,438.71	1,119.47	118	5,838.44	4,243.09	38
OPM (%)	10.9	8.5		11.9	9.0
OP	266.14	95.59	178	696.62	381.06	83
Other Inc.	10.43	6.16	69	29.79	50.25	-41
PBIDT	276.57	101.75	172	726.41	431.31	68
Interest	0.83	3.86	-79	14.78	22.67	-35
PBDT	275.74	97.89	182	711.63	408.64	74
Depreciation	57.6	55.24	4	217.19	232.01	-6
PBT	218.14	42.65	411	494.44	176.63	180
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	218.14	42.65	411	494.44	176.63	180
EO Income	0	0	-	0	-7.22	-
PBT after EO	218.14	42.65	411	494.44	169.41	192
Taxation	55.64	11.71	375	128.36	55.58	131
PAT	162.5	30.94	425	366.08	113.83	222
Minority Interest (MI)	0.41	0.05	720	0.62	0.61	2
Net profit	162.09	30.89	425	365.46	113.22	223
EPS (Rs)*	#	#		13.8	4.5
Notes
* EPS is on current equity of Rs 26.44 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

United Breweries : Consolidated Segment Results
	% of (Total)	2206 (03)	2106 (03)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Beer	100	5,188.74	2,645.75	96	100	13,094.04	10,156.85	29
Non-Alcoholic Beverages	0	7.34	6.88	7	0	29.88	28.91	3
Total Reported Sales	100	5,196.08	2,652.63	96	100	13,123.92	10,185.76	29
Less: Inter segment revenues		0	0	-		0	0	-
Net Sales		5,196.08	2,652.63	96		13,123.92	10,185.76	29
PBIT
Beer	103	293.96	113.87	158	108	840.8	502.54	67
Non-Alcoholic Beverages	-3	-8.6	-12.04	29	-8	-65.1	-38.41	-69
Total PBIT	100	285.36	101.83	180	100	775.7	464.13	67
Less : Interest		-0.83	3.86	PL		14.78	22.67	-35
Add: Other un-allcoable		-68.05	-55.32	-23		-266.48	-272.05	2
PBT		218.14	42.65	411		494.44	169.41	192

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