India: United Breweries reports 28.4% decline in consolidated net profit for December quarter
United Breweries Ltd, majorly owned by Dutch multinational brewing company Heineken NV, on January 28 reported 28.4 per cent decline in consolidated net profit at Rs 91.02 crore for December quarter 2021-22 on account of inflationary pressures. The company had posted a net profit of Rs 127.19 crore in the year-ago period, United Breweries Ltd (UBL) said in a regulatory filing.
However, revenue from operations was higher at Rs 3,511.85 crore during the quarter under review as against Rs 3,065.89 crore in the same period a year ago.
"Gross margin during the quarter was lower by 390 basis points as compared to last year and lower by 178 basis points vs the preceding quarter. Quarter was impacted by inflationary pressures in packaging materials as a result of general market commodity increases, partly offset by positive price and product mix," said UBL in a post earning statement.
Total expenses were at Rs 3,394.40 crore as against Rs 2,954.68 crore a year ago.
"The third quarter witnessed robust year-on-year and sequential growth of 19 per cent and 10 per cent respectively, resulting in quarterly volumes back to pre-COVID levels," the company said.
During the quarter, UBL reported a double-digit growth in all regions.
In North and South regions, UBL recorded 35 per cent and 19 per cent growth, respectively. Regions of East and West posted 12 per cent and 11 per cent growth.
UBL further said its "capex plans continue to be subdued with a focus on the completion of key ongoing projects for the coming season with an outlay expected below Rs 200 crore for the year".
"Overall liquidity position is strong with about Rs 800 crore bank balances. In the quarter the company pre-paid all remaining term debt," it added.
On the impact of the ongoing third wave of the pandemic, UBL said it is ensuring continued focus on cost actions and working capital management.
"Although the COVID trajectory is unknown, the company is confident in successfully navigating the current uncertainty with its leadership position, strong brand portfolio and healthy financial position," it said.
Shares of United Breweries Ltd on January 28 settled at Rs 1,547.95 apiece on BSE, up 2.70 per cent from the previous close.
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