India: United Breweries report increase in consolidated net profit for quarter ended September 30

Beer maker United Breweries Ltd has reported a 66.94 per cent growth in its consolidated net profit at Rs 134.12 crore in the second quarter ended September 30, mainly on the back of volume growth, the Business Standard reported on October 21.

The company, controlled by Dutch multinational brewing company Heineken NV, had posted a net profit of Rs 80.34 crore in the year-ago period, it said in a regulatory filing on October 20.

The revenue from operations of United Breweries Ltd (UBL) was up 11.49 per cent to Rs 3,673.51 crore during the quarter under review. It stood at Rs 3,294.73 crore in the corresponding period of the previous fiscal.

The company's volumes in the second quarter of the current fiscal were up 23 per cent, compared to the corresponding quarter, 3 per cent higher than the pre-pandemic numbers of the July-September period of 2019, said UBL.

However, its "gross margin during the quarter was lower by 508 bps as compared to Q2 2021, due to continued inflationary pressures on costs, particularly on prices of barley and packaging materials," said UBL in its earning statement.

This had forced UBL to go for price increases in multiple states, it added.

The total expenses of UBL were at Rs 3,507.12 crore, up 9.94 per cent in the latest September quarter compared to the year-ago period.

UBL said its capex during the quarter stood at Rs 90 crore. "However, with continued volume growth, Capex investments are planned to meet the expected volume expansion," it added.

According to the country's largest beer maker, "inflationary pressure on costs is seen to continue in the foreseeable future, requiring the company to pursue price increases and drive cost management".

However, it also added that UBL remains "optimistic on the long-term growth of the industry and evolving consumer trends driving premiumization."

Shares of UBL were trading up 0.35 per cent to Rs 1,661.95 on BSE.

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