United Breweries, a renowned beer manufacturer, reported a consolidated net profit of INR 85.34 crore for the December quarter of FY24, marking a significant turnaround from the loss of INR 1.97 crore in the same quarter of the previous financial year.
The company stated in a regulatory filing that its total revenue stands at INR 4,154.98 crore, marking a 12.28 percent increase from the INR 3,700.49 crore recorded in the corresponding quarter of the previous year.
The company reported an 8 percent volume growth in Q3, primarily led by the South and East regions, although this was partly offset by the North. Additionally, the premium segment experienced a growth of 14 percent.
“Within the (premium) segment, we see strong double digit growth for Kingfisher Ultra Max and we continue to drive premium volume growth,” said the company in a release.
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On a year-to-date basis, the company’s gross profit margin was lower compared to the previous year, experiencing a decline of 142 basis points. However, in Q3, there was an improvement of 215 basis points.
“We continue to invest behind our brands to drive topline growth and further improve margins by revenue management and cost initiatives,” the company said.
During the first 9 months of the year, investments in capital expenditure amounted to INR 134 crore, mainly directed towards supply chain initiatives to accommodate future growth. The company noted that despite observing some inflationary softening since Q2, volatility is expected to persist.
“We remain optimistic about the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics and premiumisation,” it added.
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Meanwhile, the Board of Directors has appointed Anand Kripalu as the Chairman of the Company, effective immediately. Kripalu currently holds positions as a Non-Executive Independent Director, Chairperson of the Stakeholders Relationship/Share Transfer Committee, and Member of the Audit Committee within the Company.
Anand currently serves as the Managing Director and Global CEO of EPL Limited, a company backed by Blackstone (formerly known as Essel Propack Ltd). Until recently, he held the position of Managing Director and CEO at United Spirits Ltd (Diageo India), also serving as a member of Diageo’s Global Executive team.
Earlier, he served as President for India and South East Asia at Mondelez International, President for Asia and Managing Director of Cadbury India, and was a member of Cadbury’s global leadership team. Prior to that, he spent 22 years at Unilever.