United Breweries declares reverse turnaround in Q1

United Breweries reported consolidated net loss of Rs 114.40 crore in Q1 June 2020 as compared with net profit of Rs 164.62 crore in Q1 June 2019.

Consolidated net sales slumped 75.2% to Rs 507.45 crore in Q1 June 2020 over Q1 June 2019. The Q1 earnings were announced after trading hours on Friday, 14 August 2020.

United Breweries said that the peak season was adversely impacted due to the pandemic, although there has been gradual business resumption since lockdown; the outlook continues to be volatile. United Breweries has actively managed to maintain costs and retain cash position to mitigate the impact of COVID-19. The company continues to be optimistic about the long term growth drivers of the industry and is committed to strengthen its market position while leveraging newly emerging opportunities such as home delivery, United Breweries said.

United Breweries commenced the year with no supplies for almost half the first quarter. The primary volumes for the quarter in comparison to the corresponding quarter of the previous year were down 77% with June 2020 volumes progressively improving being 57% down in comparison to the previous year.

The volume impact on Strong beer was higher when compared to Mild beer. The UP market was the least impacted with a decline of 46%, the decline in the markets of North, South and West was close to the National volume decline while the markets in the East declined 90% impacted by states of West Bengal and Orissa.

Shares of United Breweries rose 1.08% to Rs 975. United Breweries is engaged in the manufacture and sale of beer.

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