United Breweries Q1 results: Standalone PAT rises over 424% to ₹162 cr, revenue climbs 96%
2 min read . Updated: 27 Jul 2022, 09:07 PM IST
Premium- On a consolidated basis, the company posted a PAT of ₹162.50 crore in Q1FY23 versus ₹30.94 crore in Q1FY22. Revenue jumped to ₹5,196.08 crore against ₹2,652.63 crore in Q1FY22.
United Breweries (UBL) recorded a 424.25% growth in standalone net profit to ₹161.68 crore for the quarter ending June 30, 2022 (Q1FY23) period compared to ₹30.84 crore in the same quarter last year. The company posted a profit of ₹162.96 crore in Q4FY22. Standalone revenue from operations stood at ₹5,194.02 crore in Q1FY23 rising by 95.91% from ₹2,651.18 crore in Q1 of last year and higher by 41.82% from ₹3,662.40 crore in the preceding quarter.
On a consolidated basis, the company posted a PAT of ₹162.50 crore in Q1FY23 versus ₹30.94 crore in Q1FY22. Revenue jumped to ₹5,196.08 crore against ₹2,652.63 crore in Q1FY22.
During the quarter, the company's gross margin was lower by 408 basis points as compared to the corresponding quarter of the previous financial year due to inflationary pressures witnessed in the prices of barley, packaging materials, and crude oil.
The company said, although commodity prices remain elevated, there are some indications that spot prices are softening. UBL has focused on the security of supply given the peak season and volatile commodity markets. A combination of cost & efficiency measures and fixed cost leverage resulted in an EBIT margin of 8.9%, up 480 bps versus the prior year's quarter.
In its financial statement, UBL said, the quarter witnessed a more than doubling of volumes, in addition to a sequential growth of 42% resulting in an 8% growth over the corresponding pre-covid quarter of 2019. The premium segment recorded growth ahead of the total portfolio.
Further, in Q1FY23, all regions recorded growth compared to both 2021 and 2019, except for the South which recorded growth against 2021 but recorded a marginal drop against 2019 impacted by the change in policy in AP. The record volumes were achieved despite a number of supply chain restrictions in the peak season.
Meanwhile, talking about prices, UBL said price increases have been realized in multiple states, including Haryana, Karnataka, Maharashtra, MP, Orissa, Rajasthan, Telangana, and UP. The Company continues to pursue options of further price increases, where possible.
In Q1FY23, the company's CAPEX stood at ₹44 crore with the volume growth during the quarter resulting in an on-going review of capacity plans to meet future demand.
"In light of the strong demand witnessed in the peak season post earlier Covid impacted results, UBL remains optimistic about the long-term growth drivers of the industry on the basis of GDP growth, urbanization, and evolving consumer trends. UBL is well positioned to leverage and drive these opportunities," the company said.
On BSE, UBL shares closed at ₹1636.25 apiece down by ₹30.40 or 1.82%. Its market cap is around ₹43,263.29 crore.
