United Breweries
United Breweries

United Breweries Stock Jumps Over 3% Despite 20% Fall In Net Profit

United Breweries stock was trading at Rs 1,616 price level, up by nearly 3 per cent or 49 points.

Shares of United Breweries Ltd surged over 3 per cent on 20 October after the company reported a 14 per cent year-on-year growth in total revenue for July-September quarter. The company reported total revenue of Rs 1,888 crore against Rs 1,682 total revenue in corresponding quarter last year.

At 12:10 pm, shares of United Breweries were trading at Rs 1,616 price level, up by nearly 3 per cent or 49 points.

However, the figures lost their shine in some segments of the quarterly result. The Bangalore-based firm reported a 20 per cent decline in net profit, amounting to Rs 107.6 crore for the second quarter.

In terms of operational performance, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the September quarter amounted to Rs 184.5 crore, a decrease of 15.8 per cent compared to the Rs 219 crore recorded in the same quarter of the previous fiscal. The margin for the reported quarter stood at 9.8 per cent, as opposed to the 13 per cent margin seen in the corresponding period from the previous year.

“We continue to focus on revenue management and cost initiatives, to drive margin accretion. We remain optimistic on the long-term growth potential of the industry, driven by increasing disposable income, favorable demographics and premiumization,'' said United Breweries in its exchange filing.

Since the inception of this year, the share prices of the company have experienced some sharp downtrends. On a year-to-date basis, United Breweries’ shares have plunged to more than 4 per cent or 70 points.

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