Capitaline

Results 08-May-24

Analysis

United Breweries

Volume in Q4 increased 10.9%

Consolidated net sales (including other operating income) of United Breweries has increased 20.81% to Rs 2133.38 crore. Sales of Beer segment has gone up 17.27% to Rs 4,784.34 crore (accounting for 99.91% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 294.55% to Rs 4.34 crore (accounting for 0.09% of total sales).

Volume in Q4 increased 10.9% predominantly driven by South and East regions. The premium segment grew by 21% in the quarter. Within the segment, the company see strong growth for Kingfisher Ultra & Kingfisher Ultra Max and continues to drive premium volume growth. To celebrate International Women`s day, the company introduced Queenfisher, an all-women initiative. It also introduced London Pilsner Strong Beer in Karnataka, aimed to cater to the discerning taste of Karnataka`s consumers.

Profit before interest, tax and other unallocable items (PBIT) has jumped 118.90% to Rs 206.97 crore. PBIT of Beer segment rose 112.84% to Rs 206.90 crore (accounting for 99.97% of total PBIT). PBIT of Non-Alcoholic Beverages reported profit of Rs 0.07 crore compared to loss of Rs 2.66 crore.

PBIT margin of Beer segment rose from 2.38% to 4.32%. PBIT margin of Non-Alcoholic Beverages segment rose from negative 241.82% to 1.61%. Overall PBIT margin rose from 2.32% to 4.32%.

Operating profit margin has jumped from 3.04% to 6.69%, leading to 166.29% rise in operating profit to Rs 142.81 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 61.44% to 56.97%. Purchase of finished goods cost rose from 0.55% to 1.20%. Employee cost decreased from 8.90% to 8.22%. Other expenses rose from 26.14% to 26.93%.

Other income rose 124.43% to Rs 26.46 crore. PBIDT rose 158.74% to Rs 169.27 crore. Provision for interest rose 43.44% to Rs 1.75 crore.

PBDT rose 160.93% to Rs 167.52 crore. Provision for depreciation rose 13.88% to Rs 57.76 crore. Fixed assets increased to Rs 1,941.81 crore as of 31 March 2024 from Rs 1,921.71 crore as of 31 March 2023. Intangible assets stood at Rs 6.45 crore.

Profit before tax grew 714.24% to Rs 109.76 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 28.21 crore, compared to Rs 3.61 crore. Effective tax rate was 25.70% compared to 26.78%.

Minority interest increased 483.33% to Rs 0.35 crore. Net profit attributable to owners of the company increased 727.73% to Rs 81.20 crore.

Equity capital stood at Rs 26.44 crore as of 31 March 2024 to Rs 26.44 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 70.83% as of 31 March 2024 ,compared to 72.71% as of 31 March 2023 . Promoters pledged stake was 12.40% as of 31 March 2024 ,compared to 14.45% as of 31 March 2023.

Investments in capex during the year were Rs. 190 crore, primarily in supply chain initiatives to cater for future growth.

Despite some inflationary softening as seen from Q2, volatility will remain. The companhy remain optimistic about the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics & premiumization.

Full year results analysis

Net sales (including other operating income) of United Breweries has increased 8.30% to Rs 8122.68 crore. Sales of Beer segment has gone up 10.41% to Rs 18,374.18 crore (accounting for 99.97% of total sales). Sales of Non-Alcoholic Beverages segment has gone down 46.18% to Rs 5.35 crore (accounting for 0.03% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 22.61% to Rs 886.19 crore. PBIT of Beer segment rose 19.81% to Rs 910.63 crore (accounting for 102.76% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose 34.55% to Rs -24.44 crore (accounting for -2.76% of total PBIT).

PBIT margin of Beer segment rose from 4.57% to 4.96%. PBIT margin of Non-Alcoholic Beverages segment fell from negative 375.65% to negative 456.82%. Overall PBIT margin rose from 4.34% to 4.82%.

Operating profit margin has jumped from 8.22% to 8.57%, leading to 12.98% rise in operating profit to Rs 696.19 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 55.94% to 56.00%. Purchase of finished goods cost rose from 1.22% to 1.45%. Employee cost increased from 7.89% to 7.94%. Other expenses fell from 26.79% to 26.08%.

Other income rose 49.18% to Rs 73.74 crore. PBIDT rose 15.66% to Rs 769.93 crore. Provision for interest rose 48.49% to Rs 6.89 crore. Loan funds rose to Rs 102.03 crore as of 31 March 2024 from Rs 15.62 crore as of 31 March 2023. Inventories declined from Rs 1,427.81 crore as of 31 March 2023 to Rs 1,368.74 crore as of 31 March 2024. Sundry debtors were higher at Rs 2,313.84 crore as of 31 March 2024 compared to Rs 1,407.32 crore as of 31 March 2023. Cash and bank balance declined from Rs 395.29 crore as of 31 March 2023 to Rs 214.20 crore as of 31 March 2024. Investments declined from Rs 8.05 crore as of 31 March 2023 to Rs 7.97 crore as of 31 March 2024.

PBDT rose 15.43% to Rs 763.04 crore. Provision for depreciation rose 0.62% to Rs 211.9 crore. Fixed assets increased to Rs 1,941.81 crore as of 31 March 2024 from Rs 1,921.71 crore as of 31 March 2023. Intangible assets stood at Rs 6.45 crore.

Profit before tax grew 22.36% to Rs 551.14 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 140.28 crore, compared to Rs 112.63 crore. Effective tax rate was 25.45% compared to 26.99%.

Minority interest increased 18.57% to Rs 0.83 crore. Net profit attributable to owners of the company increased 34.89% to Rs 410.03 crore.

Equity capital stood at Rs 26.44 crore as of 31 March 2024 to Rs 26.44 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 70.83% as of 31 March 2024 ,compared to 72.71% as of 31 March 2023 . Promoters pledged stake was 12.40% as of 31 March 2024 ,compared to 14.45% as of 31 March 2023 .

Cash flow from operating activities has turned positive Rs 77.33 crore for year ended March 2024 from negative Rs 119.57 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 191.50 crore, compared to Rs 156.28 crore during the year ended March 2023.

The scrip is currently trading at Rs 2016

United Breweries : Consolidated Results
Particulars	2403 (03)	2303 (03)	Var.(%)	2403 (12)	2303 (12)	Var.(%)
Net Sales	2,133.38	1,765.88	21	8,122.68	7,499.92	8
OPM (%)	6.69	3.04		8.57	8.22
OP	142.81	53.63	166	696.19	616.23	13
Other Inc.	26.46	11.79	124	73.74	49.43	49
PBIDT	169.27	65.42	159	769.93	665.66	16
Interest	1.75	1.22	43	6.89	4.64	48
PBDT	167.52	64.2	161	763.04	661.02	15
Depreciation	57.76	50.72	14	211.9	210.59	1
PBT	109.76	13.48	714	551.14	450.43	22
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	109.76	13.48	714	551.14	450.43	22
EO Income	0	0	-	0	-33.12	-
PBT after EO	109.76	13.48	714	551.14	417.31	32
Taxation	28.21	3.61	681	140.28	112.63	25
PAT	81.55	9.87	726	410.86	304.68	35
Minority Interest (MI)	0.35	0.06	483	0.83	0.7	19
Net profit	81.2	9.81	728	410.03	303.98	35
EPS (Rs)*	#	#		15.5	12.4
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)	2403 (03)	2303 (03)	Var.(%)	% of (Total)	2403 (12)	2303 (12)	Var.(%)
Sales
Beer	100	4,784.34	4,079.91	17	100	18,374.18	16,641.15	10
Non-Alcoholic Beverages	0	4.34	1.1	295	0	5.35	9.94	-46
Total Reported Sales	100	4,788.68	4,081.01	17	100	18,379.53	16,651.09	10
PBIT
Beer	100	206.9	97.21	113	103	910.63	760.09	20
Non-Alcoholic Beverages	0	0.07	-2.66	LP	-3	-24.44	-37.34	35
Total PBIT	100	206.97	94.55	119	100	886.19	722.75	23
Less : Interest		1.75	1.22	43		6.89	4.64	48
Add: Other un-allcoable		-95.46	-79.85	-20		-328.16	-300.8	-9
PBT	100	109.76	13.48	714	100	551.14	417.31	32

Previous News

Britannia Industries Ltd Slides 1.31%
( Hot Pursuit - 31-Jul-23 09:45 )

United Breweries to table results
( Corporate News - 23-Apr-24 20:06 )

United Breweries launches London Pilsner Strong Beer in Karnataka
( Corporate News - 29-Feb-24 16:16 )

United Breweries appoints director
( Corporate News - 05-Jun-23 14:40 )

United Breweries Ltd stays in winning mode
( Hot Pursuit - 13-Oct-21 13:00 )

United Breweries
( Results - Analysis 29-Jul-23 00:24 )

United Breweries standalone net profit rises 130.41% in the December 2018 quarter
( Results - Announcements 14-Feb-19 16:57 )

United Breweries Q1 PAT slides 16% YoY to Rs 136.21 cr
( Hot Pursuit - 29-Jul-23 14:56 )

Volumes spurt at United Breweries Ltd counter
( Hot Pursuit - 30-Mar-22 11:00 )

United Breweries Ltd soars 3.73%, gains for fifth straight session
( Hot Pursuit - 24-Jun-20 13:00 )

United Breweries launches first-ever online merchandise store - KF.LIFE
( Corporate News - 28-Jun-23 10:07 )