INDIA: United Breweries sees Q3 sales dip, but YTD stays strong

By | 7 February 2013

  • Year-to-date net profits jump by 39.6% to INR1.66bn (US$31.3m)
  • Net sales in nine months to end of December rise by 10.5% to INR29bn
  • Operating profits climb by a third to INR2.6bn
  • Q3 sales fall by 12.7%, bucking H1 trend
The UB Group saw its United Breweries division post a slide in Q3 sales

The UB Group saw its United Breweries division post a slide in Q3 sales

United Breweries has posted a strong rise in profits for its year to date, but flagged that previous-year moves meant the numbers are "not comparable".

In the nine months to the end of December, net profits at the Kingfisher brewer leapt by 39.6% year-on-year to INR1.66bn (US$31.3m) on the back of a 10.5% lift in net sales, to INR29bn. Operating profits in the year so far jumped by 31.4%, hitting INR2.6bn.

The brewing division of The UB Group highlighted, however, that the "amalagamation" of five smaller units into United Breweries in the previous fiscal year meant that the quarterly and year-to-date numbers "are not comparable with those of corresponding periods of the previous year".

Millenium Beer Industries, United Millenium Breweries, UB Nizam Breweries, Chennai Breweries and UB Ajanta Breweries were incorporated into United Breweries in fiscal 2012.

In the third quarter of the company's fiscal year, net profits rose by 17% to INR335.2m, while net sales slipped by 12.7% to INR8.3bn. Operating profits in the three-month period inched up by 8.9% to INR425.4m.

The quarterly sales fall represents a reverse in sales in United Breweries' H1. In November, the brewer posted a 24% lift in net sales for the six months to the end of September.

The Bangalore-based division saw its share price slip by 2.1% at the close today, following the release of the YTD results.

Late last year, United Breweries announced a change of CFO, with Henricus Petrus van Zon replacing Guido de Boer. The move was confirmed to the Bombay Stock Exchange yesterday.

United Breweries is 37.5%-owned by Heineken.

To read the company's official statement, click here.

Expert analysis

United Breweries Limited: Consumer Packaged Goods Company Profile, SWOT & Financial Report

Canadean's "United Breweries Limited: Consumer Packaged Goods - Company Profile & SWOT Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, swot analysis, business description, and company history.

Sectors: Beer & cider, Company results, Emerging markets – BRIC

Companies: United Breweries, The UB Group, Heineken

There are currently no comments on this article

Be the first to comment on this article

Related research

Alcoholic Drinks in India

Alcoholic Drinks in India industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading...

Related articles

UK: OFT has 40 days to probe Diageo's Whyte & Mackay control

The UK's Office of Fair Trading (OFT) has confirmed it is investigating whether Diageo's United Spirits deal, giving it control of Scotch producer Whyte & Mackay, will harm competition in the UK market.

just the Facts - SABMiller in Asia Pacific

SABMiller presented its current thoughts on its Asia-Pacific unit at a seminar in London yesterday (17 July). Here, just drinks takes a closer look at the company's businesses in the region:

UK: Diageo bids for OFT green light over Whyte & Mackay

Diageo will seek "formal clearance" from the UK's Office of Fair Trading (OFT) after its United Spirits deal gave it control of Scotch producer Whyte & Mackay.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page