Capitaline

Results 14-Feb-25

Analysis

United Breweries

Volume growth was 8.4%

Net sales (including other operating income) of United Breweries has increased 9.64% to Rs 2000.26 crore. Sales of Beer segment has gone up 6.52% to Rs 4,425.20 crore (accounting for 99.97% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 87.50% to Rs 1.35 crore (accounting for 0.03% of total sales).

Total volume growth accelerating to 8.4% in Q3 was driven by broad based growth across its footprint and positively impacted by recent policy changes in Andhra Pradesh. Premium volume grew 33% in the quarter bringing the YTD growth rate to 35%. Within the segment, the company saw continued strong growth for Kingfisher Ultra, Kingfisher Ultra Max, and Heineken® Silver. It recently launched Amstel Grande and are thrilled by the early but promising consumer response and growing momentum in the market.

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.53% to Rs 194.44 crore. PBIT of Beer segment fell 1.10% to Rs 199.05 crore (accounting for 102.37% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose 41.20% to Rs -4.61 crore (accounting for -2.37% of total PBIT).

PBIT margin of Beer segment fell from 4.84% to 4.50%. PBIT margin of Non-Alcoholic Beverages segment rose from negative 1,088.89% to negative 341.48%. Overall PBIT margin fell from 4.66% to 4.39%.

Operating profit margin has declined from 8% to 7.07%, leading to 3.10% decline in operating profit to Rs 141.48 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 54.57% to 55.74%. Purchase of finished goods cost fell from 1.80% to 1.64%. Employee cost decreased from 8.56% to 8.28%. Other expenses rose from 27.17% to 27.37%.

Other income fell 59.06% to Rs 10.14 crore. PBIDT fell 11.21% to Rs 151.62 crore. Provision for interest rose 56.10% to Rs 3.2 crore.

PBDT fell 12.03% to Rs 148.42 crore. Provision for depreciation rose 18.33% to Rs 61.34 crore.

Profit before tax down 25.50% to Rs 87.08 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 22.8 crore, compared to Rs 31.08 crore. Effective tax rate was 37.18% compared to 26.59%.

Minority interest decreased 73.91% to Rs 0.12 crore. Net profit attributable to owners of the company decreased 55% to Rs 38.40 crore.

Investments in capex during the quarter were Rs 47 crore, focused on commercial & supply chain initiatives. To further unlock growth opportunities, the company announce a major investment in a greenfield brewery in the state of Uttar Pradesh.

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

For year-to-date (YTD) results analysis

Net sales (including other operating income) of United Breweries has increased 10.06% to Rs 6592.11 crore. Sales of Beer segment has gone up 10.22% to Rs 14,979.39 crore (accounting for 99.99% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 98.02% to Rs 2.00 crore (accounting for 0.01% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 18.30% to Rs 803.52 crore. PBIT of Beer segment rose 15.75% to Rs 814.59 crore (accounting for 101.38% of total PBIT). PBIT of Non-Alcoholic Beverages segment rose 54.83% to Rs -11.07 crore (accounting for -1.38% of total PBIT).

PBIT margin of Beer segment rose from 5.18% to 5.44%. PBIT margin of Non-Alcoholic Beverages segment rose from negative 2,426.73% to negative 553.50%. Overall PBIT margin rose from 5.00% to 5.36%.

Operating profit margin has jumped from 9.24% to 9.92%, leading to 18.20% rise in operating profit to Rs 654.10 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 55.66% to 55.17%. Purchase of finished goods cost rose from 1.54% to 1.85%. Employee cost increased from 7.84% to 7.91%. Other expenses fell from 25.77% to 25.26%.

Other income fell 41.01% to Rs 27.89 crore. PBIDT rose 13.54% to Rs 681.99 crore. Provision for interest rose 35.80% to Rs 6.98 crore.

PBDT rose 13.35% to Rs 675.01 crore. Provision for depreciation rose 14.32% to Rs 176.21 crore.

Profit before tax grew 13.01% to Rs 498.80 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 128.39 crore, compared to Rs 112.07 crore. Effective tax rate was 27.14% compared to 25.39%.

Minority interest increased 10.42% to Rs 0.53 crore. Net profit attributable to owners of the company increased 4.65% to Rs 344.12 crore.

The scrip is currently trading at Rs 2103

United Breweries : Consolidated Results
Particulars	2412 (03)	2312 (03)	Var.(%)	2412 (09)	2312 (09)	Var.(%)	2403 (12)	2303 (12)	Var.(%)
Net Sales (including other operating income)	2,000.26	1,824.46	10	6,592.11	5,989.30	10	8,122.68	7,499.92	8
OPM (%)	7.1	8.0		9.9	9.2		8.6	8.2
OP	141.48	146	-3	654.1	553.38	18	696.19	616.23	13
Other Inc.	10.14	24.77	-59	27.89	47.28	-41	73.74	49.43	49
PBIDT	151.62	170.77	-11	681.99	600.66	14	769.93	665.66	16
Interest	3.2	2.05	56	6.98	5.14	36	6.89	4.64	48
PBDT	148.42	168.72	-12	675.01	595.52	13	763.04	661.02	15
Depreciation	61.34	51.84	18	176.21	154.14	14	211.9	210.59	1
PBT	87.08	116.88	-26	498.8	441.38	13	551.14	450.43	22
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	87.08	116.88	-26	498.8	441.38	13	551.14	450.43	22
EO Income	-25.76	0	-	-25.76	0	-	0	-33.12	-
PBT after EO	61.32	116.88	-48	473.04	441.38	7	551.14	417.31	32
Taxation	22.8	31.08	-27	128.39	112.07	15	140.28	112.63	25
PAT	38.52	85.8	-55	344.65	329.31	5	410.86	304.68	35
Minority Interest (MI)	0.12	0.46	-74	0.53	0.48	10	0.83	0.7	19
Net profit	38.4	85.34	-55	344.12	328.83	5	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)	2412 (03)	2312 (03)	Var.(%)	% of (Total)	2412 (09)	2312 (09)	Var.(%)	% of (Total)	2403 (12)	2303 (12)	Var.(%)
Sales
Beer	100	4,425.20	4,154.26	7	100	14,979.39	13,589.84	10	100	18,374.18	16,641.15	10
Non-Alcoholic Beverages	0	1.35	0.72	88	0	2	1.01	98	0	5.35	9.94	-46
Total Reported Sales	100	4,426.55	4,154.98	7	100	14,981.39	13,590.85	10	100	18,379.53	16,651.09	10
PBIT
Beer	102	199.05	201.26	-1	101	814.59	703.73	16	103	910.63	760.09	20
Non-Alcoholic Beverages	-2	-4.61	-7.84	41	-1	-11.07	-24.51	55	-3	-24.44	-37.34	35
Total PBIT	100	194.44	193.42	1	100	803.52	679.22	18	100	886.19	722.75	23
Less : Interest		3.2	2.05	56		6.98	5.14	36		6.89	4.64	48
Add: Other un-allcoable		-129.92	-74.49	-74		-323.5	-232.7	-39		-328.16	-300.8	-9
PBT		61.32	116.88	-48		473.04	441.38	7		551.14	417.31	32

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