United Breweries' Q1 net profit rises to Rs 162.5 cr on volume growth

Beer maker United Breweries Ltd on Wednesday reported a five-fold jump in its consolidated net profit to Rs 162.50 crore in the June quarter, mainly on the back of volume growth.

The company, controlled by Dutch multinational brewing company Heineken NV, had posted a net profit of Rs 30.94 crore in the year-ago period, according to a regulatory filing.

United Breweries Ltd's (UBL) revenue from operations climbed 95.88 per cent to Rs 5,196.08 crore during the quarter under review. It stood at Rs 2,652.63 crore in the corresponding period of the previous fiscal.

The company's volumes in the first quarter of the current fiscal were more than double compared to the Covid-impacted quarter on an annual basis.

"The quarter witnessed a more than doubling of volumes, in addition to a sequential growth of 42 per cent resulting in an 8 per cent growth over corresponding pre-Covid quarter 2019.

"The premium segment recorded growth ahead of the total portfolio," UBL said.

However, its gross margin during the latest June quarter was lower by 408 basis points compared to the year-ago period due to inflationary pressures witnessed in the prices of barle, packaging materials and crude oil.

"Although commodity prices remain elevated, there are some indications that spot prices are softening," the company said.

About sales, UBL said all regions recorded growth in the quarter compared to both 2021 and pre-pandemic 2019, except for the southern region.

"The record volumes were achieved despite a number of supply chain restrictions in the peak season," it added.

UBL's total expenses were at Rs 4,988.37 crore, up 90.67 per cent in the latest June quarter compared to the year-ago period.

UBL remains "optimistic about the long-term growth drivers" of the industry on the basis of GDP growth, urbanisation and evolving consumer trends.

On Wednesday, shares of UBL rose nearly 2 per cent to close at Rs 1,636.25 on BSE.