Beer maker United Breweries Ltd on Thursday reported a decline of 93.97 per cent in its consolidated net profit to Rs 9.87 crore in the March quarter.
The company, controlled by Dutch multinational brewing company Heineken NV, had posted a net profit of Rs 163.78 crore in the January-March quarter a year ago, United Breweries Ltd (UBL) said in a regulatory filing on Thursday.
However, UBL's revenue from operations was up 11.35 per cent to Rs 4,081.01 crore during the quarter under review. It stood at Rs 3,664.71 crore in the corresponding period of FY22.
"Gross margin during the quarter was lower as compared to PY (previous year) due to continued inflationary pressures on our cost base, particularly on prices of barley and packaging materials," said UBL in its earnings statement.
Its premium segment recorded a growth ahead of the total portfolio, growing 19 per cent in the quarter with a strong 58 per cent growth YTD (Year to date), driven by brands such as Heineken, Kingfisher Ultra and Kingfisher Ultra Max.
"Price increases have been taken across multiple states with continued commitment in driving further revenue management initiatives," it added.
UBL's total expenses were at Rs 4,079.32 crore, up 17.93 per cent in Q4FY23 as against Rs 3,458.98 crore a year ago.
Its total income in the March quarter was at Rs 4,092.80 crore, up 11.28 per cent.
For the financial year ended March 2023, UBL's net profit was down 15.97 per cent to Rs 308.10 crore. It was Rs 366.68 crore in FY22.
However, its consolidated revenue from operation in FY23 increased 26.87 per cent to Rs 16,651.09 crore against Rs 13,123.92 crore a year ago.
According to the company, it had "all-time high full-year volumes" signalling continued category growth.
UBL's Capex spend was Rs 156 crore and it said, "with volume growth expected to continue, Capex investments are needed to meet future growth".
The company said inflationary pressure on its cost base is expected to continue in the near term.
"The company will seek appropriate action to further mitigate the impact. UBL continues to remain optimistic on the long-term growth potential of the industry, driven by increasing disposable income, favourable demographics and premiumisation," it said.
Meanwhile, in the filing, UBL said its board also recommended a dividend of 750 per cent, which is Rs 7.50 per equity share of Re 1 each to the shareholders of the company for the financial year ended on March 31, 2023.
Shares of United Breweries Ltd on Thursday settled 0.28 per cent down Rs 1,430 apiece on the BSE.
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