United Breweries (UBL)'s consolidated net profit skid 28.4% to Rs 91.02 crore on a 22.6% surge in net sales to Rs 1,582.79 crore in Q3 FY22 over Q3 FY21.
In terms of volumes, the third quarter witnessed a robust year-on-year and sequential growth of 19% and 10% respectively, resulting in quarterly volumes back to pre COVID-19 levels. UBL achieved share growth both in the quarter as well as in the year to date performance, further solidifying its market leadership.
Across India, all regions recorded double digit growth in the third quarter, with the Northern region recording a strong 35% growth despite a marginal growth in Delhi on account of policy changes in the state. The markets in South posted a 19% growth. The regions of East and West posted 12% and 11% growth respectively. The premium portfolio grew ahead of the total portfolio.
Gross margin during the quarter was lower by 390 bps as compared to last year and lower by 178 bps as against the preceding quarter. The quarter was impacted by inflationary pressures in packaging materials as a result of general market commodity increases, partly offset by positive price and product mix.
During the quarter, UBL reviewed its organisation structure to ensure it is lean, efficient and future-ready in light of the rapidly evolving market circumstances. The EBITDA reached Rs 180 crore with 11.4% margin in a quarter impacted by higher marketing investments to drive demand recovery.
The capex plans continue to be subdued with a focus on the completion of key ongoing projects for the coming season with an outlay expected below Rs 200 crore for the year. The overall liquidity position is strong with about Rs 800 crore bank balances. In the quarter, the company pre-paid all remaining term debt.
Shares of United Breweries advanced 2.70% to close at Rs 1,547.95 on BSE yesterday, 28 January 2022. UBL is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages.
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