India: United Breweries sees over two-fold jump in consolidated net profit in Q4 to March 31

Beer maker United Breweries Ltd on April 27 reported an over two-fold jump in consolidated net profit at Rs 97.53 crore in the fourth quarter ended March 31, riding on good volume growth in markets across the country.

The company had posted a consolidated net profit of Rs 41.82 crore in the year-ago quarter, United Breweries Ltd (UBL) said in a regulatory filing.

Consolidated total income from operations stood at Rs 3,629.75 crore as against Rs 3,100.67 crore in the same quarter previous fiscal, it added.

"All markets across the country witnessed good volume growth in Q4 barring a few key markets like Telangana, Orissa, and Delhi resulting in an overall 9 per cent growth," UBL said.

The quarter witnessed double digit growth in all regions barring the South, which recorded low single digit growth because of the sharp decline in Telangana due to covid excise taxation, it said adding the quarter also witnessed good recovery in key markets like Karnataka, Maharashtra and Goa.

In the north, the company said states like Rajasthan, Punjab, Haryana and Himachal Pradesh recorded good growth except Delhi with UP remaining flat, while in the east, West Bengal witnessed over 100 per cent growth even as other markets grew at double digits barring Orissa.

For the fiscal ended March 31, the company posted a consolidated net profit of Rs 113.83 crore as compared to Rs 428.29 crore, down 73 per cent.

The company said its consolidated total income from operations in FY21 was down at Rs 10,236.01 crore from Rs 14,660.45 crore in FY20.

"It has been an exceptional year with lockdowns, prolonged trade closures and Covid related duty increases. As a result, volumes for full year were down by 39 per cent. Demand and underlying profitability saw strong sequential recovery quarter by quarter," UBL said.

The company said it continues to focus on health and safety for its employees and stakeholders during this second wave of the pandemic.

"Due to the second wave, the industry outlook is volatile. Impact will depend on magnitude and duration of lockdowns, including any partial or full trade restrictions. UBL has and will continue to manage all elements of costs and capital investments with agility in light of the uncertain demand given the situation of the second COVID-19 wave across the country," it added.

On the outlook, the company said it has observed recovery of underlying consumer demand post the first COVID-19 wave and continues to be optimistic about the long-term growth drivers of the industry.

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