Summer cheer for beer firm United Breweries as margins remain stable

Cheaper raw material prices and growth in premium segment expected to help company

United Breweries, India’s largest beer manufacturer, is expected to gain business as summer brings heat waves. The company will be a major beneficiary April to July, the period that contributes 40-45 per cent of its annual beer volumes. The T20 Cricket World Cup in June and the ongoing Indian Premier League will help volumes and should offset the negative impact of elections on sales.

While peak season sales are expected to be strong, the immediate trigger for United Breweries is its performance in the March quarter. The company is expected to increase its volumes in the quarter by