United Breweries reported a consolidated net profit of Rs 30.89 crore in Q1 FY22 as against a net loss of Rs 114.40 crore in Q1 FY21.
Net revenue from operations rose 120.6% to Rs 1,119.47 crore in the first quarter as compared with the same period las year.
As compared with Q4 FY21, the company's net profit and net revenue from operations have declined by 68.2% and 27.5%, respectively.
The company posted a pre-tax profit of Rs 42.65 crore in Q1 FY22 as compared with a pre-tax loss of Rs 152.13crore in Q1 FY22. The firm recorded a current tax outgo of Rs 11.64 crore during the period under review.
On a standalone basis, the company recorded a net profit of Rs 30.84 crore in Q1 FY22 as against a net loss of Rs 114.29 crore in Q1 FY21. Net revenue from operations rose by 120.6% YoY to Rs 1,118.02 crore during the quarter.
United Breweries said that business commenced in April 2021 on a good trend but a spike in infections and related Government restrictions towards the last weeks of April resulted in challenging market conditions. The next two months of the quarter witnessed muted business with some recovery towards the end of June as markets started to gradually open. Restrictions in the quarter were less stringent when compared to the similar period of the previous year with almost all the markets partially functional in some form, resulting in an 115% growth in primary volumes. June 2021 volumes were at about half that of volumes in June 2019.
Effective working capital management resulted in higher liquidity and lower gearing, resulting in interest costs lower by 46% as compared to the corresponding quarter of the previous year. UBL's net debt stood at Rs 123 crore with capex programs focused on safety, statutory & compliance.
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The performance in the quarter has placed UBL in a strong position with respect to market leadership, brand portfolio and a robust balance sheet, all essential to navigate the current unpredictable environment. While the industry outlook continues to be volatile given the uncertain trajectory of the pandemic, the company continues to be optimistic about the long-term growth drivers of the industry and is committed to strengthen its market position.
United Breweries is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages.
The scrip fell 2.15% to currently trade at Rs 1415 on the BSE. In the past three months, the stock has added 18.35% while the benchmark Sensex has gained 6.01% during the same period.
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