United Breweries posted an 8.89% rise in net sales, reaching ₹2,322.98 crore. The volume of products sold increased by 5%, even with temporary halts in Telangana and tax-related challenges in Karnataka.
However, beer sales dropped by 7.53% to ₹4,423.87 crore, while non-alcoholic beverages fell 24.42% to ₹3.28 crore. Still, the company’s premium beer brands (Kingfisher Ultra, Ultra Max, Heineken Silver) performed well, growing 24%, and Amstel Grande was introduced in Uttar Pradesh after good feedback from Maharashtra and West Bengal.
The company’s profit before tax and interest (PBIT) jumped 23.22% to ₹255.03 crore. The beer segment’s PBIT rose 23.55%, while the non-alcoholic beverages segment posted a loss of ₹0.60 crore.
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Operating profit margin rose from 6.69% to 8.04%, thanks to better cost management:
- Raw material costs dropped (56.97% to 54.77%)
- Employee costs slightly rose (8.22% to 8.33%)
- Other expenses fell (26.93% to 26.25%)
Other income fell sharply by nearly 70%, and interest costs rose by 236%. As a result, net profit rose 20.16% to ₹97.57 crore.
Company debt rose from ₹102.03 crore to ₹619.98 crore. Inventories and receivables also increased. On the brighter side, the cash balance doubled to ₹442.88 crore.
Full Year Results (FY25):
For the full year, United Breweries’ net sales grew 9.76% to ₹8,915.09 crore. Beer sales increased 5.60%, while non-alcoholic beverages declined slightly.
PBIT for the year increased by 19.45% to ₹1,058.55 crore. The beer segment was the key contributor, while non-alcoholic drinks still reported a loss, though slightly better than before.
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Operating profit margin improved to 9.43%, up from 8.57%, due to:
- Lower raw material cost
- Reduced other expenses
- Slight increase in employee costs
Profit before tax rose 14.47% to ₹630.87 crore, and net profit grew 7.72% to ₹441.69 crore.
Other Highlights:
- The company invested ₹254 crore in capacity expansion and supply chain improvements
- Cash flow from operations increased significantly to ₹235.05 crore
- Promoter holding remained stable at 70.83%, with 12.40% pledged
Stock Price:
United Breweries’ stock is currently trading at ₹2,181.
