United Breweries not in high spirits due to increase in input costs

Inflationary environment also poses a risk to consumption and volume growth

The stock of India’s largest beer maker -- United Breweries (UBL) -- has shed over 8 per cent over the last week on a muted December quarter performance for the 2022-23 financial year (Q3FY23). This, coupled with worries on account of volumes as well as near-term profitability weighed on investor sentiment.

While the beer major’s sales in the quarter saw a growth of 2 per cent year-on-year (YoY), it was down 4 per cent on a sequential basis. The growth over Q3FY22 was led by a 4 per cent volume increase which was partly negated by a weak product mix.