United Breweries (UBL) reported 68.2% rise in consolidated net profit to Rs 163.40 crore on a 10.7% increase in net sales to Rs 1,709.17 crore in Q4 FY22 over Q4 FY21.
Total expenditure during the quarter increased by 7.7% to Rs 1,447.70 crore.
Profit before tax in Q4 FY22 stood at Rs 218.78 crore, up by 50.7% from Rs 145.21 crore in Q4 FY21.
The non-alcoholic beverage maker recorded a consolidated net profit of Rs 365.46 crore in FY22 as against a net profit of Rs 113.22 crore in FY21. Net sales increased by 37.6% to Rs 5,838.44 crore in FY22 over FY21.
UBL said that the fourth quarter witnessed robust year on year and sequential growth of 7% and 14% respectively. The growth was mixed during the quarter with January being muted due to the impact of the Omicron COVID variant, while March showed a promising start of the peak season.
Three regions recorded growth in the fourth quarter, Northern region recording a stellar 26% growth driven by UP, Rajasthan and Haryana, markets in South followed with 8% growth due to strong performance in Telangana and East recorded 2% growth comprising healthy growth in all states except for a decline in West Bengal on account of the change in the route to market. West declined by 11%.
As a market leader, UBL has achieved share growth both in the quarter as well as in the year.
Gross margin during the quarter was lower by 330 bps as compared to the corresponding quarter of the previous financial year due to inflationary pressures witnessed in the prices of malt, packaging materials and crude oil. The commodity cost picture remains challenging and volatile.
The company is in the process of securing price increases in combination with continued cost measures to mitigate this impact. As part of the drive to optimize costs, NAB production has been stopped in the manufacturing facility in Bihar and moved to a third party facility.
Capex plans continued to be subdued with a focus on the completion of key ongoing projects, with annual spend limited to Rs 173 crore. Combined with higher profitability and further improvements in working capital balances, free operating cash flow for the year was at a record Rs 721 crore, up from prior year Rs. 440 crore.
Cash balance was Rs 850 crore and the company has repaid all term debts.
The board of directors proposes at the next AGM a dividend of Rs 10.50 per share, representing a 75% pay out of profit after tax, significantly up from historic ranges.
United Breweries, controlled by Dutch multinational company Heineken NV, is primarily engaged in the manufacture, purchase, and sale of beer and non-alcoholic beverages.
The scrip advanced 0.59% to currently trade at Rs 1544 on the BSE.
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