United Breweries Ltd, a maker of beer, has announced a 66.94% increase in its consolidated net profit at Rs 134.12 crore for the second quarter that ended September 30. This growth was primarily driven by volume growth.
The business, which is owned by the Dutch global brewer Heineken NV, reported a net profit of Rs80.34 crore for the same period a year ago, according to a regulatory filing on Thursday. During the quarter under review, United Breweries Ltd.’s (UBL) operating revenue increased by 11.49% to Rs3,673.51 crore. In a similar period of the prior fiscal, it was Rs3,294.73 crore.
According to UBL, the company’s volumes in the second quarter of the current fiscal were up 23% from the prior quarter and 3% higher than the pre-pandemic levels of the July to September 2019 period. However, UBL stated in its earnings statement that “continuing inflationary pressures on costs, particularly on the prices of barley and packaging materials,” were to blame for its “gross margin for the quarter being lower by 508 bps as compared to Q2 2021.”
UBL stated that this had compelled it to pursue pricing rises in certain states. UBL’s overall spending for the most recent September quarter was Rs3,507.12 crore, an increase of 9.94% from the same quarter a year earlier. According to UBL, its CAPEX for the quarter was Rs 90 crore. With sustained volume increase, however, it stated, “Capex investments are anticipated to meet the predicted volume expansion.”
The biggest brewer in the nation claims that “cost inflationary pressure is seen to remain in the foreseeable future, necessitating the company’s pursuit of price rises and driving cost management.” UBL continued to be “optimistic on the long-term future of the business and developing consumer trends pushing premiumization,” it was also said. On the BSE, UBL shares were trading 0.35 % higher at Rs1,661.95 per share.
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