United Breweries Q2 Results: Net profit falls 20% to Rs 107.17 crore

United Breweries Q2 Results: Beer maker United Breweries Ltd on Thursday reported a 20.09 per cent decline in consolidated net profit to Rs 107.17 crore for the second quarter ended September 30. The company, controlled by Dutch multinational brewing company Heineken NV, had posted a net profit of Rs 134.12 crore in the July-September quarter a year ago, United Breweries Ltd (UBL) said in a regulatory filing.

UBL's revenue from operations rose 14.13 per cent to Rs 4,192.86 crore during the quarter under review. It was Rs 3,673.51 crore in the corresponding period of FY23.

"Gross profit margin on a year-to-date basis was lower as compared to the previous year (-287 bps) though with further improvements vs the previous quarter (+396 bps) driven by continued revenue management & cost initiatives," said an earning statement from UBL.

Its total expenses stood at Rs 4,060.92 crore, up 15.79 per cent in the second quarter of FY24.

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In the September 2023 quarter, UBL's volume "increased 7 per cent predominantly", driven by Telangana, Orissa and Rajasthan, partially offset by a decline in Delhi, it said.

Sales of the premium segment grew by 10 per cent in the quarter.

"Within the segment, we see double-digit growth for the Kingfisher Ultra family and more than 20 per cent contribution for Heineken Silver to the Heineken franchise," it added.

UBL's total income in the September quarter increased by 14.02 per cent to Rs 4,204.95 crore.

Over the outlook, UBL said despite some inflationary softening seen in Q2, "volatility" will remain.

"UBL continues to remain optimistic about the long-term growth potential of the industry, driven by increasing disposable income, favourable demographics and premiumisation," it said.

Share of United Breweries Ltd on Thursday settled at Rs 1,566.75 apiece on BSE, down 0.03 per cent from the previous close.

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