United Breweries Q3 consolidated net profit up 19% to Rs 127 cr

Beer maker United Breweries on Thursday reported an 18.87 per cent increase in consolidated net profit to Rs 127.19 crore for the third quarter ended December 2020.

The company had posted a net profit of Rs 107 crore during the October-December period of the previous fiscal, United Breweries Ltd (UBL) said in a regulatory filing.

However, its revenue from operations slipped 5.78 per cent to Rs 3,065.89 crore during the quarter under review as against Rs 3,254.07 crore in the corresponding period of the previous fiscal.

"The Gross margin during the quarter was higher by 119 bps as compared to the previous year due to positive State mix on account of the faster recovery in higher contributing markets and benign input costs," UBL said in an earnings statement.

Total expenses were at Rs 2,954.68 crore in Q3 FY21, down 5.18 per cent from Rs 3,115.99 crore earlier.

"Result for the quarter include non-recurring provisions, made by way of abundant caution, for potential expiry of stocks/doubtful debtors to the tune of Rs 23 crore. EBITDA excluding these items was Rs 201 crore, with an EBITDA margin of 15.6 per cent, up 16 bps vs prior year," it said.

Revenue from beer segment was down 5.83 per cent to Rs 3,059.94 crore as compared to Rs 3,249.29 crore in the three months to December 2019.

Non-alcoholic beverages revenue jumped 24.48 per cent to Rs 5.95 crore, from Rs 4.78 crore.

"With most markets showing a recovery in Q3, volumes were at 85 per cent of the previous year, helped by the doubling of volume in West Bengal, growth in the markets of Uttaranchal, Madhya Pradesh, Jharkhand, North East, Karnataka, Haryana and Himachal Pradesh.

"Tamil Nadu and Rest of Maharashtra remained flat. The strong segment registered a quicker recovery when compared to the mild," the company said.

The industry outlook continues to remain positive yet volatile depending on, among others, the future trajectory of the pandemic, it added.

"UBL is well-positioned to take advantage of the market opportunities being the market leader with a strong brand portfolio and robust balance sheet," it added.

Shares of United Breweries Ltd settled at Rs 1,283.25 on BSE, down 1.43 per cent from the previous close.