UB Q3 profits up 80% to Rs 72 cr on higher beer sales

United Breweries Ltd, majority owned by Dutch beverage maker Heineken, said third quarter profits grew 80.57% to Rs 72.12 crore and sales by 15.71% to Rs 1157.67 crore on increased volume growth in Karnataka, Telangana and Kerala.

Bengaluru-based beer maker UB had reported profits of Rs 39.94 crore and sales of Rs 1,000.42 crore in the same period last year, the company informed the Bombay Stock Exchange.

UB stock was up 3.76% or Rs 29.30 to close at Rs 808.10 on the Bombay Stock Exchange on Tuesday.

In Kerala, liquor is banned except in five star hotels, while the state has given licenses to beer and wine outlets. Telangana and Karnataka traditionally have high beer consuming population. Northern states such as Delhi, Chandigarh and Madhya Pradesh has also seen better growth in the quarter.

The beverage industry grew 13% in the quarter, UB said in a statement.

UB Managing Director Shekhar Ramamurthy in a recent interview had said that the second half would be better than the first half of the financial year due to favourable market conditions.

"The beer industry has been flat in the first half. We are hopeful that the second half of the year will start showing 5-6% growth," Ramamurty said.