United Breweries Ltd share Price Today

United Breweries (UBL) is the biggest beer player in the domestic market (~54% market share), a sector largely dominated by MNCs (~85% of market).

• On-trade sales comprise ~25% of revenues (rest 75% off-trade)
• Heineken, one of the world’s largest beer companies, holds 72.7% stake in United Breweries

UBL’s performance was above I-direct estimates on profitability.

• Revenues grew 11% YoY to ₹ 1709 crore, led by volume growth of 7%
• Absolute EBITDA stayed flat at ₹ 262 crore (EBITDA margins contracted 168 bps to 15.3%)
• Subsequently, the company reported a PAT of ₹164 crore (vs PAT before exceptional items of ₹160 crore in Q4FY21) and came above I-direct estimate of ₹ 91 crore. PAT after exceptional item stood at ₹ 98 crore

United Breweries announced Q3FY24 & 9MFY24 results:

Standalone Q3FY24

• Net Sales: Rs 1,823 crore, up 13% from Rs 1,611 crore in Q3FY23.
• Gross Profit: Rs 802 crore with a Gross Margin of 44.0%, a gain of 215bps from 41.8% in Q3FY23.
• EBIT: Rs 118 crore, a significant increase of 199% compared to Rs 39 crore in Q3FY23.
• Profit after Tax: Rs 85 crore compared to Rs 5 crore in Q3FY23, marking a considerable rise.
• Q3 observed an improved Gross Profit margin due to revenue management and cost initiatives, despite the challenge of inflated costs.

Standalone 9MFY24

• Net Sales: Rs 5,984 crore, a 4% increase from Rs 5,727 crore in the same period the previous year.
• Gross Profit: Rs 2,565 crore with a Gross Margin of 42.9%, a decline of 142bps from 44.3% in 9MFY23.
• EBIT: Rs 446 crore, marginally up by 2% from Rs 439 crore in the same period the previous year.
• Profit after Tax: Rs 329 crore, up 12% from Rs 294 crore in 9MFY23.
• EBIT margin stood at 7.4% 9MFY24, signifying resilience in the face of inflationary pressures.

Volume and Net Sales Insights

• Q3FY24 volume growth of 8% was largely attributed to robust demand in various regions, with East India witnessing a remarkable 22% growth.
• For 9MFY24, there is a net sales increase of 4%, driven by a recovery in volume during Q2 and Q3 as well as strategic pricing decisions.

Strategic Developments and Outlook

• Launch of Heineken® Silver Draught Beer in India, marking an addition to the premium segment.
• Ongoing efforts to drive the share of premium in the portfolio are integral to UBL's strategy.
• The company endeavors to bolster brand investments and enhance capabilities, suggesting further growth and margin accretion.

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