India: United Breweries’ Q3 results show net profit decline about 20%

Beer maker United Breweries announced its July-September quarter results for fiscal 2023-24 (Q2FY24), reporting a decline of around 20 per cent in consolidated net profit at ₹107.6 crore, compa to ₹134 crore in the corresponding period last year, LiveMint.com reported on October 19.

The Kingfisher beer maker's net revenue from operations during the second quarter of current fiscal stood at ₹1,888 crore, reporting a growth of 14.2 per cent, compared to ₹1,682 crore in the year-ago period.

On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the September quarter came in at ₹184.5 crore, registering a decline of 15.8 per cent, compared to ₹219 crore in the corresponding period last year. The margin in the quarter-under-review stood at 9.8 per cent, compared to 13 per cent in the year-ago period.

The company's volume in the September quarter increased 7 per excl RTM changes, predominantly driven by Telangana, Orissa, and Rajasthan and partially offset by a decline in Delhi.

The premium segment grew by 10 per cent in the September quarter. Within the segment, United Breweries sees double digit growth for the Kingfisher Ultra family and more than 20 per cent contribution for Heineken Silver to the Heineken franchise.

Investments in capex during the first half of the year was ₹91 crore, primarily in supply chain initiatives to cater for future growth, said United Breweries.

On the outlook, the liquor maker said that building further category growth while driving the share of premium in the portfolio remains a key focus. Despite some inflationary softening seen in the September quarter, volatility will remain, according to the company.

‘’We continue to focus on revenue management and cost initiatives, to drive margin accretion. We remain optimistic on the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics and premiumization,'' said United Breweries.

On Thursday, October 19, shares of United Breweries settled 0.03 per cent lower at ₹1,566.75 apiece on the BSE.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .