India: United Breweries sees 39.35% net profit decline in quarter ended March

United Breweries Ltd (UBL) on June 24 reported net profit decline of 39.35% at Rs 41.19 crore for the quarter ended March, mainly due to Covid-19 led disruption intensified by overall consumption slowdown, policy changes in Andhra Pradesh and input cost increase.

The maker of Kingfisher reported a 10.65% drop in net sales in the second quarter at Rs 3099.58 crore.

The Heineken-controlled UB said the price increase taken by the brewer in the markets of Karnataka, Maharashtra, Rajasthan and Goa helped partially offset increased input prices of barley and new glass bottles resulting in less than 2% reduction in gross margin. In the fourth quarter, gross margin increased marginally due to higher sales of premium products and stable input cost.

The company’s premium brands registered double digit growth despite the challenging year. Key markets such as Rajasthan and Andhra Pradesh recorded volume decline.

The brewer in a stock exchange filing said the company’s net debt stood at Rs 217 crore.

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