United Breweries rallies 7% on strong Q1 results

The stock rallied 7% to Rs 1,286 on the BSE in intra-day trade after the company reported 37% year-on-year increased in net profit at Rs 2,219 million in June quarter.

United Breweries (UBL) rallied 7% to Rs 1,286 on the BSE in intra-day trade after the company reported healthy 37% year-on-year (YoY) increased in net profit at Rs 2,219 million in June quarter (Q1FY19). Revenue grew 11.2% at Rs 18.66 billion on YoY basis.

The company reported 12% volume growth compared with industry average growth of 9% during the quarter. 

Gross margin expanded by about 180 basis points (bps) driven by favorable state mix, pricing and effective cost management of input material costs.  EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 249bps YoY to 21.5%.

“UBL realized