Capitaline

Results 27-Apr-22

Analysis

United Breweries

PBT up 5%

United Breweries consolidated net sales increased 10.65% to Rs 1709.17 crore in Q4FY22 compared to Q4FY21. Sales of Beer segment has gone up 1.38% to Rs 3,658.70 crore (accounting for 99.84% of total sales). Sales of Non-Alcoholic Beverages segment has gone down 35.03% to Rs 6.01 crore (accounting for 0.16% of total sales).

Operating profit margin has declined from 16.98% to 15.30%, leading to 0.32% decline in operating profit to Rs 261.47 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.17% to 48.62%. Purchase of finished goods cost rose from 1.38% to 2.82%. Employee cost decreased from 8.57% to 7.33%. Other expenses fell from 26.14% to 26.03%.

Other income rose 11.92% to Rs 13.05 crore. PBIDT rose 0.20% to Rs 274.52 crore. Provision for interest fell 40.76% to Rs 2.5 crore. PBDT rose 0.85% to Rs 272.02 crore. Provision for depreciation fell 14.56% to Rs 53.24 crore.

Profit before interest, tax and other unallocable items (PBIT) has slumped 3.49% to Rs 288.55 crore. PBIT of Beer segment fell 2.13% to Rs 303.83 crore (accounting for 105.30% of total PBIT). PBIT of Non-Alcoholic Beverages segment fell 33.10% to Rs -15.28 crore (accounting for -5.30% of total PBIT).

PBIT margin of Beer segment fell from 8.60% to 8.30%. PBIT margin of Non-Alcoholic Beverages segment fell from negative 124.11% to negative 254.24%. Overall PBIT margin fell from 8.26% to 7.87%.

Profit before EO grew 5.47% to Rs 218.78 crore. The company reported nil EO items during the quarter compared to net EO expense of Rs 62.22 crore. PBT after EO was up 51% to Rs 218.78 crore. Provision for tax was expense of Rs 55 crore, compared to Rs 47.68 crore. Effective tax rate was 25.14% compared to 32.84%.

Minority interest decreased 2.56% to Rs 0.38 crore. Net profit attributable to owners of the company increased 68.21% to Rs 163.40 crore.

Promoters stake was 72.71% as of 31 March 2022 compared to 57.72% as of 31 March 2021 . Promoters pledged stake was 14.45% as of 31 March 2022 compared to 18.20% as of 31 March 2021 .

Full year results analysis

Net sales of United Breweries have increased 37.60% to Rs 5838.44 crore. Sales of Beer segment has gone up 28.92% to Rs 13,094.04 crore (accounting for 99.77% of total sales). Sales of Non-Alcoholic Beverages segment has gone up 3.36% to Rs 29.88 crore (accounting for 0.23% of total sales).

Operating profit margin has jumped from 8.98% to 11.93%, leading to 82.81% rise in operating profit to Rs 696.62 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.21% to 46.55%. Purchase of finished goods cost rose from 1.73% to 3.37%. Employee cost decreased from 11.42% to 9.00%. Other expenses fell from 31.68% to 29.10%.

Other income fell 40.72% to Rs 29.79 crore. PBIDT rose 68.42% to Rs 726.41 crore. Provision for interest fell 34.80% to Rs 14.78 crore. Loan funds declined from Rs 261.97 crore as of 31 March 2021 to Rs 9.74 crore as of 31 March 2022. Inventories declined from Rs 1,136.68 crore as of 31 March 2021 to Rs 935.81 crore as of 31 March 2022. Sundry debtors were lower at Rs 1,254.86 crore as of 31 March 2022 compared to Rs 1,394.99 crore as of 31 March 2021. Cash and bank balance rose to Rs 909.68 crore as of 31 March 2022 from Rs 469.28 crore as of 31 March 2021. Investments rose to Rs 8.35 crore as of 31 March 2022 from Rs 6.06 crore as of 31 March 2021 .

PBDT rose 74.15% to Rs 711.63 crore. Provision for depreciation fell 6.39% to Rs 217.19 crore. Fixed assets declined from Rs 2,071.80 crore as of 31 March 2021 to Rs 2,016.35 crore as of 31 March 2022. Intangible assets stood at Rs 6.45 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 67.13% to Rs 775.70 crore. PBIT of Beer segment rose 67.31% to Rs 840.80 crore (accounting for 108.39% of total PBIT). PBIT of Non-Alcoholic Beverages segment fell 69.49% to Rs -65.10 crore (accounting for -8.39% of total PBIT).

PBIT margin of Beer segment rose from 4.95% to 6.42%. PBIT margin of Non-Alcoholic Beverages segment fell from negative 132.86% to negative 217.87%. Overall PBIT margin rose from 4.56% to 5.91%.

Profit before EO grew 179.93% to Rs 494.44 crore. The company reported nil EO items during the period compared to net EO expense of Rs 7.22 crore. PBT after EO was up 192% to Rs 494.44 crore. Provision for tax was expense of Rs 128.36 crore, compared to Rs 55.58 crore. Effective tax rate was 25.96% compared to 32.81%.

Minority interest increased 1.64% to Rs 0.62 crore. Net profit attributable to owners of the company increased 222.79% to Rs 365.46 crore.

Equity capital stood at Rs 26.44 crore as of 31 March 2022 to Rs 26.44 crore as of 31 March 2021. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 72.71% as of 31 March 2022 compared to 57.72% as of 31 March 2021. Promoters pledged stake was 14.45% as of 31 March 2022 compared to 18.20% as of 31 March 2021.

The scrip is currently trading at Rs 1537

United Breweries : Consolidated Results
Particulars	2203 (03)	2103 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	1,709.17	1,544.64	11	5,838.44	4,243.09	38
OPM (%)	15.3	17.0		11.9	9.0
OP	261.47	262.3	0	696.62	381.06	83
Other Inc.	13.05	11.66	12	29.79	50.25	-41
PBIDT	274.52	273.96	0	726.41	431.31	68
Interest	2.5	4.22	-41	14.78	22.67	-35
PBDT	272.02	269.74	1	711.63	408.64	74
Depreciation	53.24	62.31	-15	217.19	232.01	-6
PBT	218.78	207.43	5	494.44	176.63	180
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	218.78	207.43	5	494.44	176.63	180
EO Income	0	-62.22	-	0	-7.22	-
PBT after EO	218.78	145.21	51	494.44	169.41	192
Taxation	55	47.68	15	128.36	55.58	131
PAT	163.78	97.53	68	366.08	113.83	222
Minority Interest (MI)	0.38	0.39	-3	0.62	0.61	2
Net profit	163.4	97.14	68	365.46	113.22	223
EPS (Rs)*	#	#		13.82	4.46
Notes
* EPS is on current equity of Rs 26.44 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

United Breweries : Consolidated Segment Results
	% of (Total)	2203 (03)	2103 (03)	Var.(%)	% of (Total)	2203 (12)	2103 (12)	Var.(%)
Sales
Beer	100	3,658.70	3,608.84	1	100	13,094.04	10,156.85	29
Non-Alcoholic Beverages	0	6.01	9.25	-35	0	29.88	28.91	3
Total Reported Sales	100	3,664.71	3,618.09	1	100	13,123.92	10,185.76	29
Less: Inter segment revenues		0	0	-		0	0	-
Net Sales		3,664.71	3,618.09	1		13,123.92	10,185.76	29
PBIT
Beer	105	303.83	310.45	-2	108	840.8	502.54	67
Non-Alcoholic Beverages	-5	-15.28	-11.48	-33	-8	-65.1	-38.41	-69
Total PBIT	100	288.55	298.97	-3	100	775.7	464.13	67
Less : Interest		2.5	4.22	-41		14.78	22.67	-35
Add: Other un-allcoable		-67.27	-149.54	55		-266.48	-272.05	2
PBT		218.78	145.21	51		494.44	169.41	192

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