India: United Breweries reports 15.8% fall in June quarter profit
India's United Breweries Ltd reported a 15.8% fall in June-quarter profit on July 28, dragged by higher excise duty and costs, the Yahoo News Singapore reported.
The liquor maker, partly owned by the Dutch brewer Heineken NV, said its standalone profit fell to 1.36 billion rupees ($16.5 million) in the quarter ended June 30 from 1.62 billion rupees a year earlier.
Total expenses rose 1.7%, outpacing a 0.9% increase in revenue to 52.41 billion rupees.
The margin on the earnings before interest and taxes contracted 95 basis points to 8%, the company said, adding that inflationary pressure is seen softening in the near term. The maker of Kingfisher beer also reported a 7.7% increase in excise duty.
The brewer had in May flagged that margin pressures will persist in the first quarter amid sticky inflation.
It posted its first loss in 10 quarters in October-December, hit by slower revenue growth and rising costs.
Parent Heineken is expected to report its half-year results on July 31.
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