India: United Breweries Q4 profit up 20.5%

United Breweries, the largest beer seller in India, reported a 20.5% increase in quarterly profit on May 7, lifted by solid demand for higher-priced beers and lower excise duty costs.

The Kingfisher beer maker's standalone profit rose to 973.8 million rupees ($11.50 million) in the fourth quarter ended March 31, from 808.4 million rupees an year earlier.

United Breweries, majority-owned by Netherlands-based Heineken, reported a 7.6% decline in revenue after it briefly stopped supply to India's top beer consuming state, Telangana. Still, volumes were up 5% in the quarter, with those of premium beers jumping 24%.

Total expenses dropped 8.6%, led by a 21% decline in excise duty.

Indians with more means are shrugging off high cost of living to spend on indulgences from Nestle's pricier chocolates to costlier beers sold by United Breweries, Anheuser-Busch InBev's Budweiser and Carlsberg.

In the reported quarter, however, United Breweries was at odds with Telangana over delayed payments and a lack of government approval for price increases since 2019/20.