- 21 Oct 2022
- ICICIdirect Research
BEER CONTINUES TO GAIN LOST MARKET SHARE FROM LIQUOR SECTOR FOR UBL IN Q2FY23
UBL - 1970 Change: -15.20 (-0.77 %)News:
Net revenues grew 18% YoY to Rs 1680 crore (I-direct estimate: Rs 1818 crore). Volumes grew 23% YoY (I-direct estimate: 25% volume growth). Premium volumes grew 48% with strong performance from Heineken and Kingfisher Ultra. Absolute EBITDA grew 32% to Rs219 crore (I-direct estimate: Rs182 crore). EBITDA margin at 13% was higher than I-direct estimate of 10%, mainly due to better-than-expected product mix. Subsequently, reported PAT grew 66% to Rs134 crore and came above I-direct estimate of Rs 103 crore, in sync with EBITDA performance and higher other income.
View:
While all regions grew in double digits, strong volume growth was primarily driven by states such as Rajasthan, WB and Telangana. The strong volume growth continued to showcase the resilience of market for Beer (amid negative impact for last 3 years and gain in share for liquor sector at beer expense). The management expects COGS inflation to remain high in foreseeable future and expects to counter it via price hikes and cost control measures.
Impact:
Positive.