United Breweries Sees Profit Surge, Revenue Climbs 12 pc

The beer manufacturer United Breweries Ltd announced a consolidated net profit of Rs 85.80 crore for the third quarter ending in December 2023.

United Breweries Ltd (UBL), which is owned by the Dutch multinational brewing company Heineken NV, reported a net loss of Rs 1.81 crore in the October-December quarter of the previous year, as stated in a regulatory filing.

During the quarter under review, United Breweries Ltd (UBL) witnessed a 12.28 percent increase in revenue from operations, reaching Rs 4,154.98 crore compared to Rs 3,700.49 crore in the corresponding period of FY23.

UBL stated in its earnings statement that in Q3, volumes rose by 8 percent, propelled by robust underlying demand, with the premium segment outpacing the rest of the portfolio, growing by 14 percent.

UBL's volume growth was primarily fueled by Tamil Nadu, Telangana, Orissa, Maharashtra, and Rajasthan, although this was partially offset by decreases in Delhi and Kerala.

Additionally, the company implemented price increases in key markets such as Rajasthan, Uttar Pradesh, and Karnataka.

In the December quarter of FY24, UBL experienced a 10.54 percent increase in total expenses, amounting to Rs 4,062.87 crore, while total income rose by 12.55 percent to Rs 4,179.75 crore.

Regarding the outlook, UBL noted that despite observing some easing of inflationary pressures compared to Q2, volatility is expected to persist.

The company expressed its ongoing commitment to enhancing margins through revenue management and cost-saving measures, alongside increasing investments in its brands and capabilities.

On Thursday, United Breweries Ltd's shares closed at Rs 1,757.75 on the BSE, marking a 1.78 percent decrease from the previous closing price.