UB Q2 net halves to Rs 5.1 crore

United Breweries (UB), the country’s largest brewing company, today reported halving of its net profit in the second quarter ended September 2008 to Rs 5.1 crore as against Rs 10.5 crore recorded in the previous corresponding quarter.

The company said that its sales promotions and advertising spends have shot up by 27 per cent during the first half of the current financial year as it tries to hold on to its close to 40 per cent share in the Indian beer market.

Its main competitor SAB Miller is closing this gap with the introduction of various brands and has around 35 per cent share. Revenues were up 28 per cent to Rs 361 crore in the quarter. During the half year ended September 2008, the company grew 50 per cent faster than the industry average of 5.5 per cent powered by a 19 per cent growth in the strong beer segment.