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

 

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