Sales & Profit Growth:
Sales increased by ???? +13% from ₹4,19,083 Lakhs in Q2 FY24 to ₹4,74,152 Lakhs in Q2 FY25, demonstrating solid revenue growth.
EBITDA witnessed a ???? +28% rise, indicating better operational efficiency and cost management.
Profit Before Tax (PBT) increased by ???? +23%, showing strong profitability improvements.
Net Profit After Tax (PAT) grew by ???? +23%, reinforcing the company’s robust financial health.
???? Segment-wise Sales Data & Growth:
Beer Segment:
Revenue: ₹4,74,152 Lakhs (???? +13% growth from ₹4,19,054 Lakhs).
Segment Results: ₹27,932 Lakhs in Q2 FY25 compared to ₹24,204 Lakhs in Q2 FY24, indicating an ???? +15% improvement.
Non-Alcoholic Beverages:
Revenue: ₹65 Lakhs (Minimal contribution).
Segment Results: ₹(518) Lakhs, reflecting a loss and further decline compared to previous years.
???? Key Expenses:
Cost of Raw Materials Consumed: ₹1,19,111 Lakhs (???? +14%), reflecting higher production activity.
Excise Duty: ₹2,62,684 Lakhs (???? +14%), accounting for a significant portion of the overall expenses.
Employee Benefits: ₹12,630 Lakhs (???? +8% from ₹11,716 Lakhs).
Other Expenses: ₹52,650 Lakhs (???? +7%).
Important Financial Ratios:
EBITDA Margin: 7.03% (???? Improved from 5.74% in the previous quarter).
Net Profit Margin: 2.78% (???? Stable and in line with industry standards).
Earnings Per Share (EPS):
Basic EPS: ₹5.00 per share (???? Improvement from ₹4.07 in Q2 FY24).
Diluted EPS: ₹5.00 per share (???? Positive).
Financial Leverage and Debt Position:
Finance Costs: ₹219 Lakhs (Minimal, reflecting efficient debt management).
Debt Level: The company continues to maintain a healthy debt position with relatively low borrowings.
Peer Group Comparison:
United Breweries operates in the alcoholic beverage industry, primarily competing with:
Radico Khaitan
Globus Spirits
Carlsberg India and other regional players.
Comparison by Size and Market Share:
United Breweries leads the market with a 13% revenue growth.
Radico Khaitan has experienced moderate growth but does not match UBL’s scale, particularly in the beer segment.
Carlsberg India is a significant competitor, but UBL maintains a stronger brand presence and higher revenue generation.
???? Industry Outlook:
The Indian alcoholic beverage market is growing due to rising disposable incomes, changing consumer preferences, and increasing urbanization.
The beer segment is expected to continue expanding, with premiumization trends and increased demand for premium and craft beer products.
Government regulations continue to be a challenge, particularly excise duties and state-specific laws, but UBL is well-positioned with a robust distribution network.
Key Trends:
Premiumization: Increasing demand for premium beer brands as consumers seek higher quality beverages.
Expansion into Non-Alcoholic Beverages: Although currently a small segment, UBL is exploring growth opportunities in non-alcoholic beverages, which are gaining popularity in urban areas.
???? Future Outlook for United Breweries:
???? Positive Revenue Trajectory: UBL’s focus on brand premiumization, distribution expansion, and cost control will drive continued revenue growth.
???? Margin Expansion: Higher efficiency and operational improvements are expected to enhance EBITDA margins further.
???? Non-Alcoholic Beverage Potential: The company’s entry into this segment remains cautious, but it holds potential for diversification.
???? Long-Term Growth: UBL is expected to benefit from India’s growing middle class and increasing urban population, which will drive consumption of premium alcoholic beverages.
???? Contact Information:
Toll-Free Number: 1800 890 4317
WhatsApp Channel: https://whatsapp.com/channel/0029Va9KwJOId7nV4uqtE81v
Disclosure:
This financial analysis is based on the Q2 FY25 unaudited financial results provided by United Breweries Limited, focusing on consolidated data for September 30, 2024. Investors are advised to perform their own due diligence or consult with financial advisors before making investment decisions.
