Results     09-Feb-24
Analysis
United Breweries
9MFY24 capex was Rs 134 crore
United Breweries consolidated net sales increased 13.11% to Rs 1824.46 crore in Q3FY24 compared to Q3FY23.  Volume in Q3 increased 8% predominantly driven by South and East regions partially offset by North. The premium segment grew by 14% in the quarter. Within the segment, the company see strong double-digit growth for Kingfisher Ultra Max & we continue to drive premium volume growth. in November, Heineken Silver draught beer was unveiled in Maharashtra, delivering a smooth and refreshing experience for discerning beer lovers. Sales of Beer segment has gone up 12.27% to Rs 4,154.26 crore (accounting for 99.98% of total sales).  Sales of Non-Alcoholic Beverages segment has gone up 242.86% to Rs 0.72 crore (accounting for 0.02% of total sales). 

Profit before interest, tax and other unallocable items (PBIT) has jumped 86.23% to Rs 193.42 crore.  PBIT of Beer segment rose 59.90% to Rs 201.26 crore (accounting for 104.05% of total PBIT).  PBIT of Non-Alcoholic Beverages segment rose 64.38% to Rs -7.84 crore (accounting for -4.05% of total PBIT). 

PBIT margin of Beer segment rose from 3.40% to 4.84%.  PBIT margin of Non-Alcoholic Beverages segment rose from negative 10,480.95% to negative 1,088.89%.  Overall PBIT margin rose from 2.81% to 4.66%. 

Operating profit margin has jumped from 4.78% to 8%, leading to 89.51% rise in operating profit to Rs 146.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 55.54% to 54.57%.   Purchase of finished goods cost fell from 1.97% to 1.80%.   Employee cost decreased from 9.13% to 8.56%.   Other expenses fell from 28.53% to 27.17%.

Other income rose 89.81% to Rs 24.77 crore.  PBIDT rose 89.55% to Rs 170.77 crore.  Provision for interest rose 28.12% to Rs 2.05 crore. 

PBDT rose 90.67% to Rs 168.72 crore.  Provision for depreciation rose 3.21% to Rs 51.84 crore. 

Profit before tax grew 205.49% to Rs 116.88 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 31.08 crore, compared to Rs 6.95 crore.  Effective tax rate was 26.59% compared to 135.21%.

Minority interest increased 187.50% to Rs 0.46 crore.

Investments in capex during the first 9 months of the year were Rs. 134 crore, primarily in supply chain initiatives to cater for future growth. Despite some inflationary softening as seen from Q2, volatility will remain. The company remain optimistic about the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics & premiumization.

Promoters’ stake was 70.83% as of 31 December 2023 compared to 72.71% as of 31 December 2022 .  Promoters pledged stake was 12.40% as of 31 December 2023 compared to 14.97% as of 31 December 2022 . 

For year-to-date (YTD) results analysis

Net sales (including other operating income) of United Breweries has increased 4.45% to Rs 5989.3 crore.  Sales of Beer segment has gone up 8.19% to Rs 13,589.84 crore (accounting for 99.99% of total sales).  Sales of Non-Alcoholic Beverages segment has gone down 88.57% to Rs 1.01 crore (accounting for 0.01% of total sales). 

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.12% to Rs 679.22 crore.  PBIT of Beer segment rose 6.16% to Rs 703.73 crore (accounting for 103.61% of total PBIT).  PBIT of Non-Alcoholic Beverages segment rose 29.33% to Rs -24.51 crore (accounting for -3.61% of total PBIT). 

PBIT margin of Beer segment fell from 5.28% to 5.18%.  PBIT margin of Non-Alcoholic Beverages segment fell from negative 392.31% to negative 2,426.73%.  Overall PBIT margin rose from 5.00% to 5.00%. 

Operating profit margin has declined from 9.81% to 9.24%, leading to 1.64% decline in operating profit to Rs 553.38 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 54.22% to 55.66%.   Purchase of finished goods cost rose from 1.44% to 1.54%.   Employee cost increased from 7.57% to 7.84%.   Other expenses fell from 26.99% to 25.77%.  

Other income rose 25.61% to Rs 47.28 crore.  PBIDT rose 0.07% to Rs 600.66 crore.  Provision for interest rose 50.29% to Rs 5.14 crore. 

PBDT fell 0.22% to Rs 595.52 crore.  Provision for depreciation fell 3.58% to Rs 154.14 crore. 

Profit before tax grew 1.01% to Rs 441.38 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 112.07 crore, compared to Rs 109.02 crore.  Effective tax rate was 25.39% compared to 27.00%.

Minority interest decreased 25% to Rs 0.48 crore.  Net profit attributable to owners of the company increased 11.78% to Rs 328.83 crore. 

Promoters’ stake was 70.83% as of 31 December 2023 ,compared to 72.71% as of 31 December 2022 .  Promoters pledged stake was 12.40% as of 31 December 2023 ,compared to 14.97% as of 31 December 2022 . 

The scrip is currently trading at Rs 1768

  

United Breweries : Consolidated Results

Particulars

2312 (03)

2212 (03)

Var.(%)

2312 (09)

2212 (09)

Var.(%)

2303 (12)

2203 (12)

Var.(%)

Net Sales

1,824.46

1,613.02

13

5,989.30

5,734.04

4

7,499.92

5,838.44

28

OPM (%)

8.0

4.8

 

9.2

9.8

 

8.2

11.9

 

OP

146

77.04

90

553.38

562.6

-2

616.23

696.62

-12

Other Inc.

24.77

13.05

90

47.28

37.64

26

49.43

29.79

66

PBIDT

170.77

90.09

90

600.66

600.24

0

665.66

726.41

-8

Interest

2.05

1.6

28

5.14

3.42

50

4.64

14.78

-69

PBDT

168.72

88.49

91

595.52

596.82

0

661.02

711.63

-7

Depreciation

51.84

50.23

3

154.14

159.87

-4

210.59

217.19

-3

PBT

116.88

38.26

205

441.38

436.95

1

450.43

494.44

-9

Share of Profit/(Loss) from Associates

0

0

-

0

0

-

0

0

-

PBT before EO

116.88

38.26

205

441.38

436.95

1

450.43

494.44

-9

EO Income

0

-33.12

-

0

-33.12

-

-33.12

0

-

PBT after EO

116.88

5.14

999

441.38

403.83

9

417.31

494.44

-16

Taxation

31.08

6.95

347

112.07

109.02

3

112.63

128.36

-12

PAT

85.8

-1.81

LP

329.31

294.81

12

304.68

366.08

-17

Minority Interest (MI)

0.46

0.16

188

0.48

0.64

-25

0.7

0.62

13

Net profit

85.34

-1.97

LP

328.83

294.17

12

303.98

365.46

-17

EPS (Rs)*

#

#

 

#

#

 

12.4

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 Results

Particulars

2312 (03)

2212 (03)

Var.(%)

2312 (09)

2212 (09)

Var.(%)

2303 (12)

2203 (12)

Var.(%)

Net Sales

1,824.46

1,613.02

13

5,989.30

5,734.04

4

7,499.92

5,838.44

28

OPM (%)

8.0

4.8

 

9.2

9.8

 

8.2

11.9

 

OP

146

77.04

90

553.38

562.6

-2

616.23

696.62

-12

Other Inc.

24.77

13.05

90

47.28

37.64

26

49.43

29.79

66

PBIDT

170.77

90.09

90

600.66

600.24

0

665.66

726.41

-8

Interest

2.05

1.6

28

5.14

3.42

50

4.64

14.78

-69

PBDT

168.72

88.49

91

595.52

596.82

0

661.02

711.63

-7

Depreciation

51.84

50.23

3

154.14

159.87

-4

210.59

217.19

-3

PBT

116.88

38.26

205

441.38

436.95

1

450.43

494.44

-9

Share of Profit/(Loss) from Associates

0

0

-

0

0

-

0

0

-

PBT before EO

116.88

38.26

205

441.38

436.95

1

450.43

494.44

-9

EO Income

0

-33.12

-

0

-33.12

-

-33.12

0

-

PBT after EO

116.88

5.14

999

441.38

403.83

9

417.31

494.44

-16

Taxation

31.08

6.95

347

112.07

109.02

3

112.63

128.36

-12

PAT

85.8

-1.81

LP

329.31

294.81

12

304.68

366.08

-17

Minority Interest (MI)

0.46

0.16

188

0.48

0.64

-25

0.7

0.62

13

Net profit

85.34

-1.97

LP

328.83

294.17

12

303.98

365.46

-17

EPS (Rs)*

#

#

 

#

#

 

12.4

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


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