United Breweries to expand on strong Q1

United Breweries to expand on strong Q1

United Breweries plans to expand its capacity after reporting a leap in beer sales and a doubling of net profits for its fiscal first quarter.

Beer sales by volume increased by 36% for the three months to 30 June, partially boosted by the restart of supplies to Andhra Pradesh, United Breweries said yesterday (21 July).

The India-based brewer, which is 37.5%-owned by Heineken, said it extended its leadership of the country's fledgling beer market, which expanded at a slower rate of 30% for the quarter.

Net profits for the three months doubled on the same period of last year, rising by 114% to INR761m (US$16m), said the Kingfisher lager brewer.

Operating profits, meanwhile, rose by 92%, driven by strong volume growth in Karnataka, one of the more profitable Indian states for beer sales, United Breweries said.

"Ongoing capacity investments will be made through expansions in a number of our breweries," said the firm, which is estimated to constitute close to 50% of the Indian beer market.

The brewer, which is part of billionaire Vijay Mallya's UB Group, did not disclose net sales figures for the quarter.

Earlier this week, sister firm United Spirits reported an 18% rise in first quarter sales.