United Breweries Boasts 27.47% Growth in Q1 Net Profit

United Breweries Ltd, under Heineken NV, reported a 27.47% increase in consolidated net profit to Rs 173.80 crore for Q1 ending June 30. Revenue rose by 10.83% to Rs 5,811.28 crore, with net sales boosted by a 5% volume increase and a 44% surge in the premium segment.

United Breweries Ltd, under the control of Dutch multinational brewing giant Heineken NV, announced a notable 27.47% rise in consolidated net profit amounting to Rs 173.80 crore for the first quarter ending June 30.

The company had recorded a net profit of Rs 136.34 crore during the same period last year, according to a regulatory filing by United Breweries Ltd (UBL).

UBL's operational revenue soared by 10.83% to reach Rs 5,811.28 crore this quarter, up from Rs 5,243.01 crore in the corresponding quarter the previous year. A statement from the company attributed the gross profit improvement to volume and price mix.

The company reported a 247 basis points improvement in gross profit margin year on year, driven by a 5% increase in volume growth and a significant 44% rise in the premium segment. Titles within this segment, such as Kingfisher Ultra and Kingfisher Ultra Max, saw significant growth, UBL noted.

UBL highlighted its continuous investments in brand and capability enhancements, alongside revenue management and cost initiatives, as key drivers. The company's total expenses for the quarter stood at Rs 5,585.19 crore, marking a 10% increase.

Despite the rise in expenses, total income climbed by 10.75% to Rs 5,818.63 crore. UBL also invested Rs 47 crore in capital expenditures focusing primarily on supply chain improvements for future growth.

Looking ahead, UBL expressed optimism regarding the industry's long-term growth potential, citing increasing disposable income, favorable demographics, and a trend towards premiumisation. Shares of United Breweries Ltd closed at Rs 2,107.75 on the BSE, up by 4.26% on Thursday.

(With inputs from agencies.)