India's United Breweries profit rises in Q1 on strong demand for premium beer

United Breweries

25/07/2024 13:55

BENGALURU, July 25 (Reuters) - India's United Breweries  UBBW.NS  reported a 27% rise in its
first-quarter profit on Thursday, as sales of chilled beer spiked during summer.
    The company's profit rose to 1.73 billion rupees ($20.7 million) in the April-June quarter compared with
1.36 billion rupees a year ago.
    Sales volume rose 5% while revenue surged 11% to 58.09 billion rupees, led by a 44% growth in its premium
segment, which includes the Kingfisher Ultra and Kingfisher Ultra Max brands, the company said.
    
    KEY CONTEXT
    India's alcohol and beverage industry has been seeing steady volume growth, specially in the premium
category, driven by evolving lifestyles and higher disposable incomes.
    Scorching summers have been a boon for beer sales while stable barley prices and easing bottling and
packaging costs have boosted profitability.
    
        
    PEER COMPARISON
     
                                 Valuation(nex    Estimates (next 12       Analysts' sentiment           
                                 t 12 months)         months)                                        
                         RIC      PE    EV/EBI   Revenue     Profit    Mean      # of     Stock to     Div
                                         TDA      growth     growth   rating*  analysts    price      yield
                                                                                          target**     (%)
  United Breweries     UBBW.NS   71.02  45.35     13.59      53.13     Hold       12        1.03       0.50
         Ltd                                                                                         
 United Spirits Ltd    UNSP.NS   63.78  41.95     10.38      10.69      Buy       11        1.02       0.65
 Radico Khaitan Ltd    RADC.NS   53.22  31.51     17.42      44.45      Buy       5         0.92       0.17
     Tilaknagar        TILK.NS   27.32  19.68     -33.63     14.97    Strong      1         0.76       0.10
   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
    
    
    APRIL-JUNE STOCK PERFORMANCE
    
    
-- All data from LSEG

-- $1 = 83.7630 Indian rupees


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United Breweries Q1    https://tmsnrt.rs/4ffY6pQ
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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))