Results     05-May-23
Analysis
United Breweries
OP down 79% due to continued inflationary pressures
United Breweries consolidated consolidated net sales increased 3.32% to Rs 1765.88 crore in Q4FY23 compared to Q4FY22.  Sales of Beer segment has gone up 11.51% to Rs 4,079.91 crore (accounting for 99.97% of total sales).  Sales of Non-Alcoholic Beverages segment has gone down 81.70% to Rs 1.10 crore (accounting for 0.03% of total sales). Volume growth of 3% in the quarter was primarily driven by Telangana, West Bengal, Uttar Pradesh & Rajasthan. 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.

Profit before interest, tax and other unallocable items (PBIT) has slumped 67.23% to Rs 94.55 crore.  PBIT of Beer segment fell 68.01% to Rs 97.21 crore (accounting for 102.81% of total PBIT).  PBIT of Non-Alcoholic Beverages segment rose 82.59% to Rs -2.66 crore (accounting for -2.81% of total PBIT). 

PBIT margin of Beer segment fell from 8.30% to 2.38%.  PBIT margin of Non-Alcoholic Beverages segment rose from negative 254.24% to negative 241.82%.  Overall PBIT margin fell from 7.87% to 2.32%. 

Operating profit margin has declined from 15.30% to 3.04%, leading to 79.49% decline in operating profit to Rs 53.63 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 48.62% to 61.44%.   Purchase of finished goods cost fell from 2.82% to 0.55%.   Employee cost increased from 7.33% to 8.90%.   Other expenses rose from 26.03% to 26.14%.   Gross margin during the quarter was lower as compared to PY due to continued inflationary pressures on cost base, particularly on prices of barley and packaging materials. Price increases have been taken across multiple states with continued commitment in driving further revenue management initiatives. Inflationary pressure on cost base is expected to continue in the near term.

Other income fell 9.66% to Rs 11.79 crore.  PBIDT fell 76.17% to Rs 65.42 crore.  Provision for interest fell 51.20% to Rs 1.22 crore. 

PBDT fell 76.40% to Rs 64.2 crore.  Provision for depreciation fell 4.73% to Rs 50.72 crore.  Fixed assets declined from Rs 2,016.35 crore as of 31 March 2022 to Rs 1,921.71 crore as of 31 March 2023.  Intangible assets stood at Rs 6.45 crore. 

Profit before tax down 93.84% to Rs 13.48 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 3.61 crore, compared to Rs 55 crore.  Effective tax rate was 26.78% compared to 25.14%.

Minority interest decreased 84.21% to Rs 0.06 crore.  Net profit attributable to owners of the company decreased 94% to Rs 9.81 crore. 

Equity capital stood at Rs 26.44 crore as of 31 March 2023 to Rs 26.44 crore as of 31 March 2022.  Per share face Value remained same at Rs 1.00. 

Promoters’ stake was 72.71% as of 31 March 2023 ,compared to 72.71% as of 31 March 2022 .  Promoters pledged stake was 14.45% as of 31 March 2023 ,compared to 14.45% as of 31 March 2022 . 

Full year results analysis

Net sales (including other operating income) of United Breweries has increased 28.46% to Rs 7499.92 crore.  Sales of Beer segment has gone up 27.09% to Rs 16,641.15 crore (accounting for 99.94% of total sales).  Sales of Non-Alcoholic Beverages segment has gone down 66.73% to Rs 9.94 crore (accounting for 0.06% of total sales). YTD Volume growth of 31% was driven by Telangana, Rajasthan, Maharashtra & West Bengal

Profit before interest, tax and other unallocable items (PBIT) has slumped 6.83% to Rs 722.75 crore.  PBIT of Beer segment fell 9.60% to Rs 760.09 crore (accounting for 105.17% of total PBIT).  PBIT of Non-Alcoholic Beverages segment rose 42.64% to Rs -37.34 crore (accounting for -5.17% of total PBIT). 

PBIT margin of Beer segment fell from 6.42% to 4.57%.  PBIT margin of Non-Alcoholic Beverages segment fell from negative 217.87% to negative 375.65%.  Overall PBIT margin fell from 5.91% to 4.34%. 

Operating profit margin has declined from 11.93% to 8.22%, leading to 11.54% decline in operating profit to Rs 616.23 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 46.55% to 55.94%.   Purchase of finished goods cost fell from 3.37% to 1.22%.   Employee cost decreased from 9.00% to 7.89%.   Other expenses fell from 29.10% to 26.79%.  

Other income rose 65.93% to Rs 49.43 crore.  PBIDT fell 8.36% to Rs 665.66 crore.  Provision for interest fell 68.61% to Rs 4.64 crore.  Loan funds rose to Rs 15.62 crore as of 31 March 2023 from Rs 9.74 crore as of 31 March 2022.  Inventories rose to Rs 1,427.81 crore as of 31 March 2023 from Rs 935.81 crore as of 31 March 2022.  Sundry debtors were higher at Rs 1,407.32 crore as of 31 March 2023 compared to Rs 1,254.86 crore as of 31 March 2022.  Cash and bank balance declined from Rs 909.68 crore as of 31 March 2022 to Rs 395.29 crore as of 31 March 2023.  Investments declined from Rs 8.35 crore as of 31 March 2022 to Rs 8.05 crore as of 31 March 2023. 

PBDT fell 7.11% to Rs 661.02 crore.  Provision for depreciation fell 3.04% to Rs 210.59 crore.  Fixed assets declined from Rs 2,016.35 crore as of 31 March 2022 to Rs 1,921.71 crore as of 31 March 2023.  Intangible assets stood at Rs 6.45 crore. 

Profit before tax down 8.90% to Rs 450.43 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 112.63 crore, compared to Rs 128.36 crore.  Effective tax rate was 26.99% compared to 25.96%.

Minority interest increased 12.90% to Rs 0.70 crore.  Net profit attributable to owners of the company decreased 16.82% to Rs 303.98 crore.

YTD Capex spend was Rs.156 crore With volume growth expected to continue, Capex investments are needed to meet future growth.

Equity capital stood at Rs 26.44 crore as of 31 March 2023 to Rs 26.44 crore as of 31 March 2022.  Per share face Value remained same at Rs 1.00. 

Promoters’ stake was 72.71% as of 31 March 2023 ,compared to 72.71% as of 31 March 2022 .  Promoters pledged stake was 14.45% as of 31 March 2023 ,compared to 14.45% as of 31 March 2022 . 

Cash flow from operating activities has turned negative Rs 119.57 crore for year ended March 2023 from positive Rs 899.62 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 156.28 crore, compared to Rs 173.55 crore during the year ended March 2022. 

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 1396

 

United Breweries : Consolidated Results

Particulars

2303 (03)

2203 (03)

Var.(%)

2303 (12)

2203 (12)

Var.(%)

Net Sales

1,765.88

1,709.17

3

7,499.92

5,838.44

28

OPM (%)

3.0

15.3

 

8.2

11.9

 

OP

53.63

261.47

-79

616.23

696.62

-12

Other Inc.

11.79

13.05

-10

49.43

29.79

66

PBIDT

65.42

274.52

-76

665.66

726.41

-8

Interest

1.22

2.5

-51

4.64

14.78

-69

PBDT

64.2

272.02

-76

661.02

711.63

-7

Depreciation

50.72

53.24

-5

210.59

217.19

-3

PBT

13.48

218.78

-94

450.43

494.44

-9

Share of Profit/(Loss) from Associates

0

0

-

0

0

-

PBT before EO

13.48

218.78

-94

450.43

494.44

-9

EO Income

0

0

-

-33.12

0

-

PBT after EO

13.48

218.78

-94

417.31

494.44

-16

Taxation

3.61

55

-93

112.63

128.36

-12

PAT

9.87

163.78

-94

304.68

366.08

-17

Minority Interest (MI)

0.06

0.38

-84

0.7

0.62

13

Net profit

9.81

163.4

-94

303.98

365.46

-17

EPS (Rs)*

#

#

 

12.8

13.8

 

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)

2303 (03)

2203 (03)

Var.(%)

% of (Total)

2303 (12)

2203 (12)

Var.(%)

Sales

Beer

100

4,079.91

3,658.70

12

100

16,641.15

13,094.04

27

Non-Alcoholic Beverages

0

1.1

6.01

-82

0

9.94

29.88

-67

Total Reported Sales

100

4,081.01

3,664.71

11

100

16,651.09

13,123.92

27

Less: Inter segment revenues

 

0

0

-

 

0

0

-

Net Sales

 

4,081.01

3,664.71

11

 

16,651.09

13,123.92

27

PBIT

Beer

103

97.21

303.83

-68

105

760.09

840.8

-10

Non-Alcoholic Beverages

-3

-2.66

-15.28

83

-5

-37.34

-65.1

43

Total PBIT

100

94.55

288.55

-67

100

722.75

775.7

-7

Less : Interest

 

1.22

2.5

-51

 

4.64

14.78

-69

Add: Other un-allcoable

 

-79.85

-67.27

-19

 

-300.8

-266.48

-13

PBT

 

13.48

218.78

-94

 

417.31

494.44

-16

 

 

Previous News
  Nifty slides below 22,200; broader market outperforms
 ( Market Commentary - Mid-Session 08-May-24   10:41 )
  United Breweries director resigns
 ( Corporate News - 01-Mar-23   19:47 )
  United Breweries records PAT of Rs 81 cr in Q4 FY24
 ( Hot Pursuit - 08-May-24   10:25 )
  United Breweries Ltd up for fifth session
 ( Hot Pursuit - 17-Jul-23   13:00 )
  United Breweries
 ( Results - Analysis 28-Jan-22   19:32 )
  United Breweries appoints director
 ( Corporate News - 22-Feb-23   10:34 )
  United Breweries consolidated net profit declines 28.39% in the December 2021 quarter
 ( Results - Announcements 28-Jan-22   18:05 )
  United Breweries Ltd spurts 1.62%
 ( Hot Pursuit - 14-Mar-22   13:00 )
  United Breweries to conduct board meeting
 ( Corporate News - 01-Feb-23   16:46 )
  United Breweries
 ( Results - Analysis 09-Nov-21   14:09 )
  United Breweries Ltd jumps 2.5%
 ( Hot Pursuit - 01-Jun-20   13:00 )
Other Stories
  HDFC Life Insurance Company
  16-Jul-24   08:33
  Plastiblends India
  14-Jul-24   15:45
  Avenue Supermarts
  14-Jul-24   07:07
  HCL Technologies
  13-Jul-24   06:27
  Tata Consultancy Services
  12-Jul-24   09:47
  Tata Elxsi
  11-Jul-24   05:54
  Shalby
  08-Jul-24   18:33
  Apollo Hospitals Enterprise
  04-Jun-24   10:04
  ITL Industries
  01-Jun-24   02:14
  International Combustion (India)
  31-May-24   11:32
Back Top