United Breweries shares rise 6% despite posting mixed Q3 nos; here's why

United Breweries shares advanced 6.4 per cent in trade on BSE, logging an intraday high at Rs 2,161.45 per share. The buying in the stock came after the company registered mixed Q3 results but management remained optimistic about the long-term growth potential of the beer category.

 

Around 9:51 AM, United Breweries shares were up 3.77 per cent at Rs 2,106.70 per share on BSE. In comparison, the BSE Sensex was up 0.27 per cent at 76,343.1. The market capitalisation of the company stood at Rs 55,702.23 crore. The 52-week high of the stock was at Rs 2,299.4 per share and the 52-week low of the stock was at Rs 1,645.8 per share.

 

 

On Thursday, after market hours, United Breweries reported its third quarter ended December 31, 2024, results. In its investor presentation, the company management said that they are building further category growth while driving the share of premium in our portfolio remains a key focus. 

 

Further, they continue to focus on revenue management and cost initiatives, to drive margin accretion with continued investments behind our brands and capabilities. 

 

Lastly, they were optimistic about the long-term growth potential of the beer category, driven by increasing disposable income, favorable demographics, and premiumisation.

United Breweries Q3 results

The company reported a 55 per cent decline in standalone net profit during the third quarter to Rs 38 crore, as compared to Rs 85 crore in Q3FY24. The company's total revenue from operations rose 10 per cent to Rs 1,998 crore, compared to Rs 1,823 crore year-on-year (Y-o-Y). 

 

The Earnings before interest, tax, depreciation, and amortisation (Ebitda) including other revenue for the quarter under review stood at Rs 151 crore as compared to Rs 170 crore a year ago. Ebitda margins stood at 7.6 per cent against 9.3 per cent a year ago.  

 

The company logged 16 per cent volume growth in Uttar Pradesh and Rajasthan, 3 per cent in Assam and Meghalaya partially offset by a decline in West Bengal and Odisha, 4 per cent in Maharashtra and Madhya Pradesh partially offset by a decline in Goa and 8 per cent in  Telangana and Andhra Pradesh partially offset by a decline in Tamil Nadu and Kerala.

 

In the past one year, United Breweries shares have gained 16.8 per cent against Sensex's rise of 6 per cent.