India: United Breweries report Rs 114 crore net loss for quarter ended June 30
United Breweries Ltd (UBL) reported on August 14 a net loss for the quarter through June, as Covid-led disruptions crippled business in the peak season for the maker of the Kingfisher beer.
The company reported a loss of Rs 114 crore for the first quarter. Net sales fell 74% to Rs 1,263.66 crore.
Heineken-controlled UBL said it commenced the year with no supplies for almost half of the first quarter because of a ban on liquor sales. Sales were impacted even after the gradual reopening of the business, as parts of the trade, including on-premise sale, remained closed for the full quarter, it said in a stock exchange filing.
The volume impact on strong beer was higher compared with the mild variants.
The Uttar Pradesh market was the least impacted, with a 46% fall. Declines in the North, South and West markets were close to the national average. In the East, sales fell 90%, impacted by restrictions in West Bengal and Odisha.
UBL said it is optimistic that the company will navigate the current circumstances and achieve long-term growth, driven by its leading market position, strong brand portfolio, robust balance sheet and emerging opportunities such as home delivery of liquor.
The brewer said its net debt rose Rs 120 crore from the end of March, which it took primarily to fund cash loss, even as it incurred minimal capital expenditure in the quarter.
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