India's United Breweries posts higher Q2 profit on strong premium beer demand

United Breweries

24/10/2024 12:25

Oct 24 (Reuters) - India's United Breweries  UBBW.NS  reported a rise in second-quarter
profit on Thursday, driven by higher demand for its small, but fast-growing premium beers.
    The Kingfisher beer manufacturer's standalone profit jumped 23% to 1.32 billion rupees
(nearly $16 million) for the three months to Sept. 30.
    The brewer, which is majority-owned by Netherlands-based Heineken  HEIN.AS , reported a 13%
rise in quarterly revenue to 47.42 billion rupees.
        
  
        
  
    KEY CONTEXT
        Urban consumers with higher disposable incomes are looking to indulge in more premium
alcohol, prompting companies to step up their offerings.
    United Breweries' more premium beers, which include London Pilsner and Heineken Silver, have
outpaced the growth of its cheaper beverages, helping boost its revenue and margins.
    Rival Radico Khaitan  RADC.NS  also reported a higher second-quarter profit on increasing
demand for premium alcohol.
    
    PEER COMPARISON
    
                                           Estimates (next       Analysts' sentiment       
                                              12 months)                                   
                 RIC        PE     EV/EBI  Revenue   Profit  Mean    # of      Stock to    Div
                                   TDA     growth    growth  rating  analysts  price       yield
                                           (%)       (%)     *                 target**    (%)
 United           UBBW.NS   69.50   44.01   13.60    43.77   Hold          13     0.97       0.52
 Breweries Ltd                                                                             
 United Spirits   UNSP.NS   64.24   43.43   10.09    13.47   Buy           10     1.02       0.61
 Ltd                                                                                       
 Radico Khaitan   RADC.NS   69.05   40.77   13.65    37.38   Strong         6     1.11       0.14
 Ltd                                                         Buy                           
 Tilaknagar       TILK.NS   30.90   21.87   -21.89   11.00   Strong         1     0.87       0.18
 Industries Ltd                                              Buy                           
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT 
    
     JULY TO SEPTEMBER STOCK PERFORMANCE
 -- All data from LSEG
 -- $1 = 84.0460 Indian rupees

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JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3Ykv9l2
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))