INDIA: United Breweries posts H1 profits drop after Q2 reverse
- H1 net profits down 23% to INR1,02bn (US$16.2m)
- Net sales up 4% to INR19.6bn
- Operating profits down 11% to INR1.93bn
- Q2 losses at INR185.7m after INR342m profit last year
United Breweries, part of UB Group, released its Q2 results yesterday
United Breweries has posted a drop in first-half profits as a tough Q2 plunged the Kingfisher brewer into the red for the quarter.
Net profits dropped by 23% to INR1.02bn (US$16.2m) in the six months to the end of September, the brewing arm of UB Group said late yesterday (7 November). Net sales climbed by 4% to INR19.6bn in the same period and operating profits were down by 11% to INR1.93bn
In the second quarter, the brewer posted a INR185.7m loss, down from a INR342m profit in the same quarter last year.
Reports blamed the drop on monsoons in India and unfavourable regulations that saw a 20% Q2 fall in sales in Tamil Nadu.
In its first-quarter results, UB Group's spirits arm, United Spirits (USL), said authorities in Tamil Nadu had made regulations “deliberately skewed to favour brands from select local vendors at the cost of the popular brands of USL".
To read the company's full statement, click here.
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