India: United Breweries reports multi-fold increase in consolidated net profit for Q2 to end of September
Beer maker United Breweries Ltd on October 27 reported a multi-fold increase in consolidated net profit to Rs 80.34 crore for the second quarter ended September 2021, helped by volume pick up amid gradual lifting of restrictions in the market.
It had posted a net profit of Rs 3.61 crore during the July-September period of the previous fiscal, United Breweries Ltd (UBL), majority owned by Dutch multinational brewing company Heineken N V, said in a regulatory filing.
Its revenue from operations climbed 47.15 per cent to Rs 3,294.73 crore as against Rs 2,238.96 crore in the corresponding quarter of the previous fiscal.
Total expenses were at Rs 3,189.75 crore, up 40.77 per from Rs 2,265.95 crore earlier.
“The second quarter witnessed volumes picking up and stabilising with a number of markets achieving volumes comparable or ahead of Pre-Covid levels by September. The recovery across markets was not even due to different phasing of local restrictions,” UBL said in a post-earnings statement.
Its primary volumes during the second quarter were up 49 per cent, with the Eastern markets faring exceptionally well.
“Recovery was uneven across the regions with the North almost clocking Pre-Covid levels, while the East and West were at 80 per cent and the South lower at 70 per cent,” it noted, adding that growth in the southern market was affected because of higher end consumer prices in Telangana and new policies in Andhra Pradesh.
It further said fair trade regulator CCI has imposed a penalty of Rs 751.8 crore on the company and it is in the process of preparing the grounds for appeal.
“…the appeal will be filed within the time frame of 2 months from the date of the order. Basis legal advice the Company believes that it has a strong case on merits for successful appeal on this matter,” it said.
On the outlook, the company said it is “optimistic about the long-term growth drivers” of the industry on the basis of GDP growth, urbanisation and evolving consumer trends.
“UBL is well positioned to leverage and drive these opportunities with its leading market position, portfolio of brands and healthy balance sheet,” it said.
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