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Results
05-May-23
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Analysis
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United Breweries
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OP down 79% due to continued inflationary pressures
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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
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United Breweries : Consolidated Results
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Particulars
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2303 (03)
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2203 (03)
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Var.(%)
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2303 (12)
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2203 (12)
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Var.(%)
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Net Sales
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1,765.88
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1,709.17
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3
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7,499.92
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5,838.44
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28
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OPM (%)
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3.0
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15.3
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8.2
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11.9
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OP
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53.63
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261.47
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-79
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616.23
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696.62
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-12
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Other Inc.
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11.79
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13.05
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-10
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49.43
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29.79
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66
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PBIDT
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65.42
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274.52
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-76
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665.66
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726.41
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-8
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Interest
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1.22
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2.5
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-51
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4.64
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14.78
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-69
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PBDT
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64.2
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272.02
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-76
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661.02
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711.63
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-7
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Depreciation
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50.72
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53.24
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-5
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210.59
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217.19
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-3
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PBT
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13.48
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218.78
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-94
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450.43
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494.44
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-9
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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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PBT before EO
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13.48
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218.78
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-94
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450.43
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494.44
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-9
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EO Income
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0
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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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PBT after EO
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13.48
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218.78
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-94
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417.31
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494.44
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-16
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Taxation
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3.61
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55
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-93
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112.63
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128.36
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-12
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PAT
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9.87
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163.78
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-94
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304.68
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366.08
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-17
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Minority Interest (MI)
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0.06
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0.38
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-84
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0.7
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0.62
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13
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Net profit
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9.81
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163.4
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-94
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303.98
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365.46
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-17
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EPS (Rs)*
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#
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#
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12.8
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13.8
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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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2303 (03)
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2203 (03)
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Var.(%)
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% of (Total)
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2303 (12)
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2203 (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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4,079.91
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3,658.70
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12
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100
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16,641.15
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13,094.04
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27
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Non-Alcoholic Beverages
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0
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1.1
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6.01
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-82
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0
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9.94
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29.88
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-67
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Total Reported Sales
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100
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4,081.01
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3,664.71
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11
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100
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16,651.09
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13,123.92
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27
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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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-
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Net Sales
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4,081.01
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3,664.71
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11
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16,651.09
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13,123.92
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27
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PBIT
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Beer
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103
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97.21
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303.83
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-68
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105
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760.09
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840.8
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-10
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Non-Alcoholic Beverages
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-3
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-2.66
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-15.28
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83
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-5
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-37.34
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-65.1
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43
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Total PBIT
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100
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94.55
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288.55
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-67
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100
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722.75
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775.7
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-7
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Less : Interest
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1.22
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2.5
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-51
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4.64
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14.78
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-69
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Add: Other un-allcoable
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-79.85
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-67.27
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-19
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-300.8
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-266.48
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-13
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PBT
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13.48
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218.78
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-94
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417.31
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494.44
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-16
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