UB FY14 net up on price increases

The company's net sales rose to Rs 973.9 crore for the fourth quarter as compared to Rs 931.92 crore in the same period of previous fiscal

Kingfisher beer maker United Breweries (UB)’s net profit rose 31 per cent over the previous year to Rs 226 crore for the year ended March and revenue by nine per cent to Rs 4,229 crore.

Though volumes at 139 million cases were flat, UB has managed to deliver better margins by driving efficiencies and increasing prices.

For the three months ended March, net profit increased to Rs 67 crore from Rs 5.85 crore in the corresponding quarter last year. In the March quarter last year, profit was muted because the company had to make a provision of Rs 27 crore for an employee benefit scheme. Revenue for the quarter grew a little over seven per cent over the year to Rs 1,078 crore.

UB, in which Dutch brewer Heineken has a significant control, said in a market slowed by a depressed economy, heavy monsoon, excise duty increases and the continuation of a quota-based ordering policy in Tamil Nadu, it has been able to raise its market share and profit.

“The sector volumes were down one per cent for the year. Despite this, we posted a strong growth in volume in key markets such as Karnataka, West Bengal and Uttar Pradesh and also further growth in Rajasthan, Odisha and Andhra Pradesh,” UB said.

The company said revenue had risen partly because of price increases and partly through optimisation of its sales mix. UB had  a healthy earnings before interest, taxes, depreciation and amortisation of of 19 per cent. During the quarter, UB’s market share rose 100 basis points to 51.5 per cent share. A basis point is a hundredth of a per cent.