United Breweries Q1 net profit rises 27.5% to Rs 173.8 crore

UBL's revenue from operations rose 10.83 per cent to Rs 5,811.28 crore during the quarter under review. It was Rs 5,243.01 crore in the corresponding quarter a year ago.

Beer maker United Breweries Ltd, controlled by Dutch multinational brewing company Heineken NV, on Thursday reported a 27.47 per cent rise in consolidated net profit to Rs 173.80 crore for the first quarter ended on June 30.

The company had posted a net profit of Rs 136.34 crore in the April-June quarter a year ago, according to a regulatory filing from United Breweries Ltd (UBL).

UBL's revenue from operations rose 10.83 per cent to Rs 5,811.28 crore during the quarter under review. It was Rs 5,243.01 crore in the corresponding quarter a year ago.

Gross profit improvement was driven by volume and price mix, according to an earnings statement.

UBL's gross profit margin improved by 247 bps against the previous year, it added.

The increase in net sales in Q1 is "driven by 5 per cent volume growth, led by 44 per cent growth in the premium segment, further fuelled by pricing," it said.

"Within the segment, we see strong growth for Kingfisher Ultra and Kingfisher Ultra Max and we continue to drive premium volume growth. We continue to invest behind our brands and capabilities in combination with revenue management and cost initiatives," said UBL.

Its total expenses in the June quarter stood at Rs 5,585.19 crore, up 10 per cent.

UBL's total income increased 10.75 per cent in the June quarter to Rs 5,818.63 crore.

In the quarter, UBL invested Rs 47 crore on Capex, primarily in supply chain initiatives to cater for future growth.

Over the outlook, it said: "We remain optimistic about the industry's long-term growth potential, driven by increasing disposable income, favourable demographics & premiumisation".

Share of United Breweries Ltd on Thursday settled at Rs 2,107.75 on BSE, up 4.26 per cent.