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Results
10-Feb-23
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Analysis
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United Breweries
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Inflationary pressure impacted margins and profits
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United
Breweries consolidated net sales increased 1.91% to Rs 1613.02 crore in Q3FY23
compared to Q3FY22. Sales of Beer
segment has gone up 5.61% to Rs 3,700.28 crore (accounting for 99.99% of total
sales). Sales of Non-Alcoholic Beverages
segment has gone down 97.39% to Rs 0.21 crore (accounting for 0.01% of total
sales).
Volume
growth of 4% in the quarter vs prior year was primarily driven by Telangana,
Rajasthan and Karnataka.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 49.56% to
Rs 103.86 crore. PBIT of Beer segment
fell 45.32% to Rs 125.87 crore (accounting for 121.19% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose
9.46% to Rs -22.01 crore (accounting for -21.19% of total PBIT).
PBIT
margin of Beer segment fell from 6.57% to 3.40%. PBIT margin of Non-Alcoholic Beverages
segment fell from negative 301.99% to negative 10,480.95%. Overall PBIT margin fell from 5.86% to
2.81%.
Operating
profit margin has declined from 11% to 4.78%, leading to 55.77% decline in
operating profit to Rs 77.04 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
46.30% to 55.54%. Purchase of finished
goods cost fell from 3.28% to 1.97%.
Employee cost decreased from 9.38% to 9.13%. Other expenses fell from 29.98% to
28.53%.
Gross
margin during the quarter was lower by 813 bps as compared to 2021 due to
continued inflationary pressures on costs, particularly on prices of barley and
packaging material.
Other
income rose 112.89% to Rs 13.05 crore.
PBIDT fell 50.03% to Rs 90.09 crore.
Provision for interest fell 56.64% to Rs 1.6 crore.
PBDT
fell 49.90% to Rs 88.49 crore. Provision
for depreciation fell 5.28% to Rs 50.23 crore.
Profit
before tax down 69.04% to Rs 38.26 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 6.95
crore, compared to Rs 32.56 crore.
Effective tax rate was 135.21% compared to 26.35%.
Minority
interest decreased 30.43% to Rs 0.16 crore.
The company reported net loss of Rs 1.97 crore compared to profit of Rs
90.79 crore.
The
premium segment recorded growth ahead of the total portfolio, growing 13% in
the quarter with a strong 75% growth YTD, driven by Heineken and Kingfisher
Ultra & Max.
Price
increases have been taken in a multiple of states and the company continues to
pursue options of further price increases to mitigate gross margin erosion.
Inflationary pressure on costs is seen to continue in the near term. The
company will seek to take appropriate actions to further mitigate the impact as
far as possible. UBL continues to remain optimistic on the long-term growth of
the industry, driven by rising prosperity, youthful population and evolving
consumer trends driving premiumization.
Capex
YTD was a spend of Rs.113 crore, and with continued volume growth, Capex
investments are planned to meet the expected volume expansion.
Promoters’
stake was 72.71% as of 31 December 2022 ,compared to 72.71% as of 31 December
2021 . Promoters pledged stake was
14.97% as of 31 December 2022 ,compared to 14.45% as of 31 December 2021 .
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of United Breweries has increased
38.86% to Rs 5734.04 crore. Sales of
Beer segment has gone up 33.13% to Rs 12,561.24 crore (accounting for 99.93% of
total sales). Sales of Non-Alcoholic
Beverages segment has gone down 62.97% to Rs 8.84 crore (accounting for 0.07%
of total sales).
YTD
Volume growth was 43% driven by Rajasthan, West Bengal, Telangana and
Maharashtra.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 28.95% to Rs
628.20 crore. PBIT of Beer segment rose
23.45% to Rs 662.88 crore (accounting for 105.52% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose
30.39% to Rs -34.68 crore (accounting for -5.52% of total PBIT).
PBIT
margin of Beer segment fell from 5.69% to 5.28%. PBIT margin of Non-Alcoholic Beverages
segment fell from negative 208.71% to negative 392.31%. Overall PBIT margin fell from 5.15% to
5.00%.
Operating
profit margin has declined from 10.54% to 9.81%, leading to 29.29% rise in
operating profit to Rs 562.60 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
45.68% to 54.22%. Purchase of finished
goods cost fell from 3.60% to 1.44%.
Employee cost decreased from 9.69% to 7.57%. Other expenses fell from 30.40% to
26.99%.
Other
income rose 124.85% to Rs 37.64 crore.
PBIDT rose 32.83% to Rs 600.24 crore.
Provision for interest fell 72.15% to Rs 3.42 crore.
PBDT
rose 35.76% to Rs 596.82 crore.
Provision for depreciation fell 2.49% to Rs 159.87 crore.
Profit
before tax grew 58.51% to Rs 436.95 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 109.02
crore, compared to Rs 73.36 crore.
Effective tax rate was 27.00% compared to 26.61%.
Minority
interest increased 166.67% to Rs 0.64 crore.
Net profit attributable to owners of the company increased 45.59% to Rs
294.17 crore.
Promoters’
stake was 72.71% as of 31 December 2022 ,compared to 72.71% as of 31 December
2021 . Promoters pledged stake was
14.97% as of 31 December 2022 ,compared to 14.45% as of 31 December 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 1479
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United Breweries : Consolidated Results
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Particulars
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2212 (03)
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2112 (03)
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Var.(%)
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2212 (09)
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2112 (09)
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Var.(%)
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2203 (12)
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2103 (12)
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Var.(%)
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Net Sales
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1,613.02
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1,582.79
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2
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5,734.04
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4,129.27
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39
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5,838.44
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4,243.09
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38
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OPM (%)
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4.78
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11
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9.81
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10.54
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11.93
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8.98
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OP
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77.04
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174.17
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-56
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562.6
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435.15
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29
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696.62
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381.06
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83
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Other Inc.
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13.05
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6.13
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113
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37.64
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16.74
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125
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29.79
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50.25
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-41
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PBIDT
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90.09
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180.3
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-50
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600.24
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451.89
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33
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726.41
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431.31
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68
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Interest
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1.6
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3.69
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-57
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3.42
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12.28
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-72
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14.78
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22.67
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-35
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PBDT
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88.49
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176.61
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-50
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596.82
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439.61
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36
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711.63
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408.64
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74
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Depreciation
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50.23
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53.03
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-5
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159.87
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163.95
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-2
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217.19
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232.01
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-6
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PBT
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38.26
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123.58
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-69
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436.95
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275.66
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59
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494.44
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176.63
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180
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Share of Profit/(Loss) from Associates
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0
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0
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-
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0
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0
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-
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0
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0
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-
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PBT before EO
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38.26
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123.58
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-69
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436.95
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275.66
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59
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494.44
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176.63
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180
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EO Income
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-33.12
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0
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-
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-33.12
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0
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-
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0
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-7.22
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PBT after EO
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5.14
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123.58
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-96
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403.83
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275.66
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47
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494.44
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169.41
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192
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Taxation
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6.95
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32.56
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-79
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109.02
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73.36
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49
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128.36
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55.58
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131
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PAT
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-1.81
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91.02
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PL
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294.81
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202.3
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46
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366.08
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113.83
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222
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Minority Interest (MI)
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0.16
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0.23
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-30
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0.64
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0.24
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167
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0.62
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0.61
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2
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Net profit
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-1.97
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90.79
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PL
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294.17
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202.06
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46
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365.46
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113.22
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223
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P/(L) from discontinued operations net of tax
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0
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0
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-
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0
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0
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-
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0
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0
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-
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Net profit after discontinued operations
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-1.97
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90.79
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PL
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294.17
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202.06
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46
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365.46
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113.22
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223
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EPS (Rs)*
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#
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#
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#
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#
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13.8
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4.5
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Notes
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* EPS is on current equity of Rs 26.44 crore, Face value of Rs
1, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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EO : Extraordinary items
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Figures in Rs crore
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Source: Capitaline Corporate Database
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United Breweries : Consolidated Segment Results
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% of (Total)
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2212 (03)
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2112 (03)
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Var.(%)
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% of (Total)
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2212 (09)
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2112 (09)
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Var.(%)
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% of (Total)
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2203 (12)
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2103 (12)
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Var.(%)
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Sales
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Beer
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100
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3,700.28
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3,503.80
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6
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100
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12,561.24
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9,435.34
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33
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100
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13,094.04
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10,156.85
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29
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Non-Alcoholic Beverages
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0
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0.21
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8.05
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-97
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0
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8.84
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23.87
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-63
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0
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29.88
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28.91
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3
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Total Reported Sales
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100
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3,700.49
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3,511.85
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5
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100
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12,570.08
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9,459.21
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33
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100
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13,123.92
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10,185.76
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29
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Less: Inter segment revenues
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0
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0
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-
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0
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0
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0
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0
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-
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Net Sales
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3,700.49
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3,511.85
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5
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12,570.08
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9,459.21
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33
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13,123.92
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10,185.76
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29
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PBIT
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Beer
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121
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125.87
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230.2
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-45
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106
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662.88
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536.97
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23
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108
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840.8
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502.54
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67
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Non-Alcoholic Beverages
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-21
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-22.01
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-24.31
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9
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-6
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-34.68
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-49.82
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30
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-8
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-65.1
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-38.41
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-69
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Total PBIT
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100
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103.86
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205.89
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-50
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100
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628.2
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487.15
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29
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100
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775.7
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464.13
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67
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Less : Interest
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1.6
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3.69
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-57
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3.42
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12.28
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-72
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14.78
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22.67
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-35
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Add: Other un-allcoable
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-97.12
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-78.62
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-24
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-220.95
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-199.21
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-11
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-266.48
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-272.05
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2
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PBT
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5.14
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123.58
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-96
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403.83
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275.66
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47
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494.44
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169.41
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192
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Previous News |
United Breweries
(
Results
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Analysis
09-Feb-24
10:39
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(
Results
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Analysis
25-Oct-24
14:06
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08:16
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11-Jan-24
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(
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18:05
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