UBL net rises 91%

United Breweries Ltd (UBL), the country’s largest brewery, has posted an impressive growth rate of 91 per cent in its net profit to Rs 21.9 crore for the second quarter of 2010-11, as compared to the same period last year. The growth was also supported by the company’s working capital optimisation programme, which has yielded an improvement in its working capital in excess of 30 per cent. This has significantly enhanced its cash conversion rate and reduced interest costs.

On the other hand, the company’s net sales increased by 37 per cent to Rs 567 crore during the quarter, on the back of growth in both volume and share in markets across the country, especially in Maharashtra, Andhra Pradesh, Karnataka, Uttar Pradesh and Orissa. Its operating profit grew by 65 per cent to Rs 26.5 crore during the quarter as it finetuned its efficiencies.

During the first half of the year, UBL volumes have grown by 28 per cent, while the industry grew by 24 per cent.