• H1 net profits up 67% to INR1.7bn (US$27.6m)
  • Net sales up 15% to INR25.3bn
  • Primary volumes up 10%
  • Q2 net profits reach INR426.2m after INR185.7m loss last year
  • Net sales up 28% to INR10.8bn
UB said it had raised prices

UB said it had raised prices

United Breweries' (UB) first-half sales and volumes increased in line with the industry as strong beer found good growth.

The Indian brewer, whose largest shareholder is Heineken, said yesterday that net profits in the six months to the end of September, were up 67% to INR1.7bn (US$27.6m). Net sales increased by 15% to INR25.3bn in the same period, while primary volumes climbed by 10%.

In the second quarter, the company recorded a INR426.2m profits gain compared to a loss last year, while sales were up 28% to INR10.8bn.

United Breweries, which is also part-owned by Vijay Mallya's UB Group, said double-digit industry growth was spread across all of India. However the firm boosted profits through price increases. There were also lower costs from an increase in the use of recycled bottles.

As well as the growth for strong beer, UB said there was “promising growth” for mild beer.

The company said it completed the acquisition of Pacific Spirits in Rajasthan in mid-September for INR1.05bn. Production is expected to start next summer.

In August, Heineken paid EUR2.3m (US$3m) to increase its stake in United Breweries to 38.85%.

UB's share price jumped 6% when trading opening this morning but by close was up by 1.2%.

To read the company's full results, click here