CorporateUnited Breweries Q1 net up 57% YoY
United Breweries (UBL), India"s largest brewery controlled by Indian billionaire Vijay Mallya, has posted a strong 57 per cent increase in net profit to Rs 35.5 crore for the first quarter of current fiscal as against the corresponding period of last fiscal. Net sales at Rs 556.4 crore was up 17 per cent, powered by a 25 per cent growth in strong beer.
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According to a statement from UBL, its market share grew by 3 per cent and overall national share excluding Andhra Pradesh stood at 51 per cent. In Andhra Pradesh, UBL along with SAB Miller restrained from supplying the market as the matter on price increase is currently pending decision from the AP High Court as the AP government has not been allowing price increases.
Operating profits grew 30 per cent on the back of selective price increases and aggressive cost control.
The company has plans to expand capacities in all key markets and the new green field in AP will be ready in time for the coming summer season.
The acquisition of land for the green field in Karnataka is complete. The company is on track to increase its brewing capacity by 20 per cent to 71.50 lakh hecto litres per annum in the next two years
UBL is putting up a greenfield unit with 60 lakh cases per annum initial capacity at Andhra Pradesh, which would be later expanded to 120 lakh cases per annum. Another similar unit would be set up in Karnataka with 30 lakh cases per annum initial capacity that would be hiked to 120 lakh cases.
The company is also in the midst of hammering out a shareholders agreement with global brewing major Heieneken to be an active 37.5 per cent stake holder in UBL.