India: United Breweries sees 65% drop in September quarter net profit

United Breweries Ltd on October 29 reported a 65 per cent decline in consolidated net profit to Rs 46.34 crore in the September quarter impacted by unusual monsoon hitting beer sales.

The company had posted a consolidated net profit of Rs 132.33 crore in the second quarter of the previous fiscal year, United Breweries Ltd (UBL) said in a regulatory filing.

Consolidated revenue from operations during the quarter stood at Rs 3,737.31 crore compared to Rs 4,743.56 crore in the corresponding period a year ago, it added.

Total expenses in the quarter under review were lower at Rs 3,686.37 crore as compared to Rs 4,575.68 crore, the company said.

UBL said its "total volume declined 3.4 per cent in Q2, with growth in mainly Maharashtra, Andhra Pradesh and Assam more than off-set by adverse weather across our footprint as well as stock-building in Q2-FY25 following the peak season impacted by national elections".

Premium volume grew 17 per cent in the quarter, it added.

The company said its investments in capex during the quarter were at Rs 293 crore, mainly linked to new greenfield in Uttar Pradesh and commercial capex to drive future qualitative growth.

On the outlook, it said, "We remain optimistic about the industry's long-term growth potential, driven by increasing disposable income, favorable demographics and premiumisation.