United Breweries Limited has informed the Exchange about Investor Presentation
October 20, 2022
1. Department of Corporate Services, BSE Limited, Floor 25, P J Towers, Dalal Street, Mumbai - 400 001
2. Department of Corporate Services,
National Stock Exchange of India Ltd., Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
Scrip Code: 532478
Scrip Code: UBL
Dear Sir,
Sub: Intimation of Financial Results Earning call
This has reference to Regulation 30(6) read with Para A of Part A of Schedule-III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘the Regulations’).
In accordance with the said Regulation(s), as Quarter2 FY2023 Financial Results Earnings call is scheduled tomorrow, Friday, October 21, 2022 @ 04:00 p.m. IST, by way of conference call with Investors and analysts, hosted by Investec India.
Investor presentation is attached. Unaudited Financial Results for the quarter and year to date ended September 30, 2022 are already uploaded on the website of Bombay Stock Exchange and National Stock Exchange of India Limited.
Kindly take the same on record.
Thanking you, we remain,
Yours faithfully, For UNITED BREWERIES LIMITED
GOVIND IYENGAR Company Secretary
Encl: As above
Investec India invites you to United Breweries Ltd Q2 FY23 Earnings call
Post Earnings Business Update Friday, October 21, 2022 04:00 pm IST
Diamond Pass Registration:
Mr. Radovan Sikorsky - Director and CFO- United Breweries Limited Mr. PA Poonacha - Finance and Investor Relations
Management Team
Universal Dial-In +91 22 6280 1245 +91 22 7115 8146
Dial-In Numbers
International Toll Hong Kong +852 30186877 Japan +81 345899421 Singapore +65 31575746 South Africa +27 110623033 UK USA +1 3233868721
+44 2034785524
Harit Kapoor (+9122 6849 7493) harit.kapoor@investec.com
Swapna Bhandarkar (+9122 6849 7472) swapna.bhandarkar@investec.com
For further information please contact:
Investor Presentation Quarter ended September 2022
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Disclaimer
This presentation contains forward-looking statements with regard to the financial position and results of UBL’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.
Many of these risks and uncertainties relate to factors that are beyond UBL’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, changes in consumer preferences, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in UBL’s publicly filed annual reports.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. UBL does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
Market share estimates contained in this presentation are based on outside sources such as specialized research institutes in combination with management estimates.
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Key Results Highlights for the Quarter
o Volume growth of 23% in the quarter vs prior year, primarily driven by Rajasthan, WB state and Telangana.
o The premium segment recorded growth ahead of the total portfolio, growing 48% vs 23% Total portfolio
growth;
o EBIT for the quarter ↑ 58%, driven by volumes & price increase, softened by negative state mix;
o Inflationary pressure on cost of sales continued to impact gross profit margins, contributing to a decline
by 508 bps to 46.7%,
o Strong revenue growth revenue combined with cost control drive EBIT margin growth by 277 bps;
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Q2’ 22/23 Results
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Q2 Results (standalone)Data in Rs. Cr.Sep-22Sep-21Change (%)Net Sales1,680 1,426 18%COGS(896) (688) 30%Gross Profit784 738 6%Employee expenses(139) (134) 4%Other expenses(426) (438) -3%Other income14 5 215%EBITDA233 170 37%Depreciation(52) (56) -7%EBIT181 115 58%Finance costs(1) (5) -79%Profit before tax180 110 64%Tax(46) (29) 59%Profit after tax134 81 66%As % of Net SalesSep-22Sep-21Change (bps)Gross Profit46.7%51.7%(508) EBITDA13.9%11.9%197 EBIT10.8%8.0%277 Profit before tax10.7%7.7%305 Profit after tax8.0%5.7%233 YTD’ 22/23 Results
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YTD Results (standalone)Data in Rs. Cr.Sep-22Sep-21Change (%)Net Sales4,116 2,544 62%COGS(2,254) (1,266) 78%Gross Profit1,862 1,278 46%Employee expenses(288) (248) 16%Other expenses(1,090) (770) 42%Other income25 11 132%EBITDA509 272 87%Depreciation(110) (111) -1%EBIT399 161 148%Finance costs(2) (9) -79%Profit before tax398 152 161%Tax(102) (41) 149%Profit after tax296 111 165%As % of Net SalesSep-22Sep-21Change (bps)Gross Profit45.2%50.2%(501) EBITDA12.4%10.7%168 EBIT9.7%6.3%338 Profit before tax9.7%6.0%367 Profit after tax7.2%4.4%281 Regional volume performance vs PY
Volume Growth
Q2, YTD (+23%, +67%)
Strong recovery and growth over COVID affected PY across all markets
North (+15%, +49%)
o Driven by higher volume in Rajasthan,
Haryana & Uttar Pradesh
o Decline in Delhi driven by frequent
changes in policy
West (+22%, +83%)
o Driven by higher volume in
Maharashtra state, Goa, Madhya Pradesh and Silvassa
East (+52%, +72%)
o Driven by ↑ volume in West Bengal
(>100%), due to increased demand post policy change
South (+21%, +72%)
o Driven by higher volume in Telangana, Karnataka, Tamil Nadu, Kerala and Andhra Pradesh
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Net Sales growth driven by higher volume
o Higher volume driven by strong growth in Telangana, Rajasthan and West Bengal
o Negative state mix due to differential volume growth across states with different levels of net revenues.
Improvement over previous quarter.
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1,426 1,680 324 (23%)52 (4%)-123 (-9%)Net Rev PYVolume VariancePrice varianceMix varianceNet Rev CYRevenue Q2 (in Rs. Cr) Net Sales growth driven by higher volume
o Volume growth of 67% spread across markets (LY impacted by C-19)
o Price increase implemented in Punjab and Delhi in Q2
o Negative state mix due to differential volume growth across states with different levels of net revenues.
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2,544 4,116 1,692 (+67%)159 (6%)-280 (-11%)Net Rev PYVolume VariancePrice varianceMix varianceNet Rev CYRevenue YTD (in Rs. Cr) Margin recovery despite increased commodity prices
o Gross profit growth driven by volume growth and price increases.
o Gross profit margin impacted by commodity cost increases in Raw and Packaging materials
o Improved margin driven by fixed cost leverage and savings initiatives.
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161 399 584 (40)(307)1 EBIT PYGross ProfitEmployee expensesOther expenses/incomeDepreciationEBIT CYEBIT YTD (in Rs. Cr)-501 bps274 bps395 bpsYTD Margin6.3%9.7%169 bps Outlook and summary
o Focus remains on building further category penetration while driving the share of premium in the portfolio.
o Inflation pressure on Cost of goods sold will most likely remain for the foreseeable future. UBL is in the
process of pursuing further price increases in combination with continued cost measures to mitigate this impact.
o Capex investments are planned for execution to meet the expected volume growth.
o UBL remains optimistic about the long-term growth drivers of the industry on the basis of GDP growth,
urbanization and evolving consumer trends. UBL is well positioned to leverage and drive these opportunities with its leading market position, portfolio of brands and healthy balance sheet.
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Thank You