Net sales stood at Rs 1,765.88 crore in Q4 FY23, up 3.3% from Rs 1,709.17 crore reported in Q4 FY22.

Profit before tax tumbled 93.8% to Rs 13.48 crore in the fourth quarter of FY23 as against Rs 218.78 crore posted in the same period last year.

Total expenses rose 17.93% YoY to Rs 4,079.32 crore in Q4 FY23. Cost of materials consumed stood at Rs 1106.74 crore (up 32.29% YoY) and employee benefits expense was at Rs 117.29 crore (up 33.57% YoY) during the period under review.

The volume growth stood at 3% in the quarter, primarily driven by Telangana, West Bengal, Uttar Pradesh & Rajasthan.

Gross margin during the quarter was lower as compared to previous year due to continued inflationary pressures on the company's cost base, particularly on prices of barley and packaging materials.

On full year basis, the company's consolidated net profit slipped 16.8% to Rs 303.98 crore despite a 28.5% jump in net sales to Rs 7,499.92 crore in FY23 over FY22. YTD volume growth improved to 31% driven by Telangana, Rajasthan, Maharashtra & West Bengal.

The premium segment recorded growth ahead of the total portfolio, growing 19% in the quarter with a strong 58% growth YTD, driven by Heineken, Kingfisher Ultra & Kingfisher Ultra Max.

The brewing company said that the price increases have been taken across multiple states with continued commitment in driving further revenue management initiatives.

The firm's YTD capex spend was Rs 156 crore. With volume growth expected to continue, capex investments are needed to meet future growth, it added.

Inflationary pressure on the firm's cost base is expected to continue in the near term. The company will seek appropriate action to further mitigate the impact. UBL continues to remain optimistic on the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics & premiumization, United Breweries stated in the press release.

Meanwhile, the company's board has recommended a dividend of Rs 7.50 per equity share for the financial year ended 31 March 2023.

Further, UBL said that its board has approved the resignation of Rishi Pardal from the post of managing director & CEO of the company with effect from close of business hours on Thursday, 4 May 2023.

United Breweries, controlled by Dutch multinational company Heineken NV, is primarily engaged in the manufacture, purchase, and sale of beer and non-alcoholic beverages.