UBL Q2 preview: Net profit likely to fall 28%, margin pressure to persist
United Breweries Q2 preview: As per analysts at Zee Business, the margins of United Breweries Ltd, majorly owned by Dutch multinational brewing company Heineken NV, are expected to dip to 9.8 per cent from 13.03 per cent due to a reduction in barley prices.
United Breweries Q2 preview: United Breweries (UBL) is all set to report its financial results today, October 19. According to Zee Business research, UBL is likely to report a 4.1 per cent year-on-year (YoY) rise in standalone revenue to Rs 1,749 crore for the quarter ended September 30, 2023, against Rs 1,680 crore logged in Q2 FY2023.
As per analysts at Zee Business, the margins of United Breweries Ltd, majorly owned by Dutch multinational brewing company Heineken NV, are expected to dip to 9.8 per cent from 13.03 per cent due to a reduction in barley prices. According to Zee Business research, the company is likely to report a 27.6 per cent year-on-year (YoY) fall in its standalone profit after tax (PAT) to Rs 97 crore against Rs 134 crore logged a year ago.
The analysts peg UBL's earnings before interest, taxes, depreciation, and amortisation (EBITDA) to decline by 21 per cent to Rs 173 crore from Rs 219 registered in the year-ago period. Further, the company is expected to see an increase in employee benefit expenses as well as other expenses. Besides, the research desk notes that a fall in the price of barley is expected to impact the company's gross margins.
United Breweries share price history
United Breweries' stock has slipped nearly 6 per cent in the last 12 months (from October 19, 2022). In comparison, the headline index Nifty 50 has rallied over 12 per cent.
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