United Breweries Limited
United Breweries Ltd, a subsidiary of Heineken NV, is a manufacturer and distributor of alcoholic and non-alcoholic beverages. The company’s products portfolio comprises of beer, and packaged drinking water. The company also organizes food and music festivals and sporting events to supply beer. UBL markets its products through restaurants, bars, pubs, clubs, and star hotels. The company owns and manages manufacturing facilities and contract units in Andhra Pradesh, Goa, Kerala, Karnataka, Telangana, Punjab, Haryana, West Bengal, Rajasthan, Maharashtra, and Odisha states of India. UBL is headquartered in Bangalore, Karnataka, India.
Key Brands
- Kingfisher Strong
- Heineken Silver
- Kingfisher Ultra
- Kingfisher Premium
- Kingfisher Ultra Max
- Kingfisher Storm
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 8,123 | 7,500 | 5,838 |
| Sales Growth % | 8.30% | 28.46% | 37.60% |
| Expenses | 7,426 | 6,884 | 5,142 |
| Operating Profit | 696 | 616 | 697 |
| OPM % | 9% | 8% | 12% |
| Profit after tax | 411 | 305 | 366 |
| EPS in Rs | 15.51 | 11.5 | 13.82 |
Synopsis of Financials
- Net sales rose by 21% across various states, with some offset in markets like Haryana and Rajasthan.
- Volumes for the full year were up close to 2%, with net sales up by 8%.
- Gaining market share with an estimated overall market share of over 50%.
- Industry growth estimated to be around 6-7% for FY ’24, with a focus on outpacing market growth.
Final Outlook
India is currently the largest market in the world for beer, with a significant portion of the young generation reaching the legal drinking age, leading to year-over-year growth in beer consumption. Despite farmers diversifying crops last year, barley cultivation saw an increase due to attractive prices and the success of our collaborative farming program. This year’s favorable monsoon is expected to ensure ample raw material supply. While revenue from operating activities is positive, profit after tax (PAT) is negative due to increased raw material costs as mentioned in the annual report. However, with extensive campaigning across the country, collaborations with influencers, and the successful launch of new products, the company is anticipated to experience substantial growth in the future.
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