United Breweries Q2 Results: Net profit falls 97% to Rs 4.01 crore

United Breweries on Friday said its net profit for the second quarter ended September plummeted 97% year on year to Rs 4.01 crore from Rs 115 crore as the impact of the pandemic continued to plague the country’s biggest brewer.

The maker of Kingfisher beer posted revenue of Rs 2,272.29 crore for the quarter, a 37% decline from Rs 3,589.66 crore a year earlier.

In a stock exchange filing, the Heineken-controlled UBL said the revenue recovery rate improved from the first quarter, led by resumption of supplies in all markets based on state-wise lifting of lockdown, reduction in excise burden in states of Odisha and Andhra Pradesh, and cost control with focus on working capital management.


The brewer had commenced the year with no supplies for almost half of the first quarter because of a ban on liquor sales.
Sales were impacted even after the gradual reopening of the business, as parts of the trade such as on-premise sales remained closed through the quarter.

UBL stated that volumes in the second quarter were 48% lower than the corresponding quarter of the previous year, compared to a 77% decline in the first quarter.

On the positive side, key markets such as Karnataka, Tamil Nadu and Goa have witnessed sharp recovery and posted higher volumes in September than a year earlier.

Volumes of strong beer recovered faster than mild beer across markets, the filing stated.

Overall cost management resulted in Q2 earnings before interest, taxes, depreciation, and amortisation (Ebitda) of Rs 73 crore in the second quarter, showing sequential improvement compared to Ebitda loss of Rs 94 crore in the previous quarter.

UBL said that while Covid-19 continues to lend considerable uncertainty on consumer demand, monthly recovery is encouraging and the company is optimistic that it will strengthen its leading market position.