United Breweries' market share gains to continue unabated: Analysts

Expected debt-free status by FY19 provides further relief

Following strong June quarter (Q1) numbers announced on August 10, the stock of United Breweries (UBL) has surged  15 per cent. While net sales grew 11.2 per cent year on year (yoy) to Rs18.7 billion in Q1, net profit surge of 37.1 per cent to Rs 2.2 billion surprised investors. 

A healthy 12 per cent volume growth and a 249-basis point yoy expansion in the operating profit margin to 21.5 per cent drove the Q1 performance. The volume growth was also positive, ahead of the industry’s growth of 9 per cent, indicating market share gains. 

Analysts expect UBL’s market share gains to