United Breweries Limited has informed the Exchange about Investor Presentation
May 07, 2025
To, BSE Limited Scrip Code: 532478
Dear Sir,
National Stock Exchange of India Limited Symbol: UBL
Sub: Intimation of Investor Presentation on the Financial Results Earning Call
This is in furtherance to our intimation dated April 30, 2025, regarding the invitation to host a Q4FY2025 Earnings Call on May 08, 2025, after the announcement of the Audited Financial Results of the Company for the Financial Year ended March 31, 2025.
Pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the Investor Presentation on the Audited Financial Results of the Company for the Financial Year ended March 31, 2025 (Q4FY2025).
The details are also being made available on the Company’s website www.unitedbreweries.com
You are requested to take the above information on record.
Yours faithfully, For UNITED BREWERIES LIMITED
________________________________ NIKHIL MALPANI Company Secretary & Compliance Officer Membership No: A20869
Encl: As above
Registered & Corporate Office: UB Tower, UB City, #24, Vittal Mallya Road, Bengaluru – 560 001. INDIA Tel: (91-80) 4565 5000, Email: ublcorporate@ubmail.com, Web Site: www.unitedbreweries .com Corporate Identity Number: L36999KA1999PLC025195
Investor Presentation
Quarter and FY ended March 2025
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.
2
Q4 Highlights
Volume +5%
Net Sales +9%
EBIT +24%
Premium Volume +24%
Gross Margin 42.1%
(+37 bps vs LY)
Profit after Tax +20%
YTD Q4 Highlights
Volume
+6%
Net Sales
+10%
EBIT
+15%
Premium Volume
+32%
Gross Margin 43.0% (+44 bps vs LY)
Profit after Tax
+8%
Q4 volumes growing at 5% despite temporary suspension in Telangana & duty structure changes in Karnataka.
Volume Growth1 (+5% ITQ, +6% YTD)
North (+3%)
Volume growth in Uttar Pradesh & Punjab partially offset by a decline in Rajasthan
West (+11%)
Volume growth in Maharashtra, Madhya Pradesh & Goa
East (+0%)
Volume growth in Odisha & Assam offset by a decline in mainly West Bengal
South (+5%)
Volume growth in Andhra Pradesh partially offset by a decline in Karnataka and Telangana
1. Volume commentary based on Q4 vs LY
5
FY25 volumes are up 6%, with premium growing 32%, driven by consistent growth each quarter.
Quarterly Volume Development
FY25
44%
33%
32%
27%
24%
5%
5%
5%
6%
8%
Q1-FY25
Q2-FY25
Q3-FY25
Q4-FY25
Total Volume
Premium Volume
Total Volume
Premium Volume
6
Q4 – FY25 Results
Q4 Results (standalone)Data in Rs. Cr.Mar-25Mar-24Change (%)Net Sales2,3212,1329%COGS-1,344-1,2428%Gross Profit97788910%Employee expenses-190-1749%Other expenses-601-5735%Other income826-70%EBITDA19416815%Depreciation-57-58-2%EBIT13711124%Finance costs-6-2235%Profit before exceptional item and tax13210921%Exceptional item000%Profit before tax13210921%Tax-34-2822%Profit after tax978120%As % of Net SalesMar-25Mar-24Change (bps)Gross Profit42.1%41.7%37EBITDA8.4%7.9%46EBIT5.9%5.2%73Profit before exceptional item and tax5.7%5.1%56Profit before tax5.7%5.1%56Profit after tax4.2%3.8%40 YTD – FY25 Results
YTD Results (standalone)Q4 Results (standalone)Data in Rs. Cr.Mar-25Mar-24Change (%)Net Sales8,9078,11510%COGS-5,077-4,6619%Gross Profit3,8313,45411%Employee expenses-713-64311%Other expenses-2,278-2,1168%Other income3673-51%EBITDA87576814%Depreciation-233-21210%EBIT64255615%Finance costs-13-787%Profit before exceptional item and tax62954915%Exceptional item-2600%Profit before tax60354910%Tax-162-14016%Profit after tax4414098%....As % of Net SalesMar-25Mar-24Change (bps)Gross Profit43.0%42.6%44EBITDA9.8%9.5%36EBIT7.2%6.9%35Profit before exceptional item and tax7.1%6.8%29Profit before tax6.8%6.8%0Profit after tax5.0%5.0%-9 Q4 FY25 Net Sales growth with balanced contribution from volume growth and price-mix
Net sales Q4 (Rs. Cr.)
2,321
2,132
5%
1
4%
2
Net Sales PY
Volume
Price & Mix
Net Sales CY
1
Volume growth mainly driven by Andhra
Pradesh, Uttar Pradesh, Maharashtra & Assam
partially offset by Telangana & Karnataka.
2
Positive Price Mix driven by price increases in
Telangana, Orissa & Rajasthan coupled with
favorable mix mainly from premiumization.
9
YTD FY25 10% topline growth driven by continued volume momentum and Price Mix
Net sales YTD (Rs. Cr.)
8,907
8,115
6%
1
4%
2
Net Sales PY
Volume
Price & Mix
Net Sales CY
1
2
Volumes grew by 6% driven by strong broad-
based growth across our footprint partially off-set
by mainly Tamil Nadu.
Positive Price Mix is driven by price increases in
multiple states & mix from premiumization.
10
Q4-FY25 EBIT is up Rs 27 Cr. With solid Gross Profit growth and increased investments behind our organization, brands & our supply chain ahead of the peak season
111
Rs. Cr.
137
+27 (+24%)
1
2
EBIT Q4-PY
Gross Profit
Employee expenses
Other expenses
Other Income & Depreciation
EBIT Q4-CY
11
15% EBIT growth driven by volume and price-mix with increased investments behind our brands & organization and resulting in EBIT margin expansion
EBIT YTD (Rs. In Cr)
+15%
556
1
Gross Profit improvement driven by volume
and price mix. GP margin 44 bps up vs LY
driven by revenue management & cost
642
initiatives despite short term margin pressure
prior to the completion of our capacity
expansions
EBIT PY
Volume GP
Price/Mix GP
Pers. Expenses
Other 1 expenses/income
EBIT CY
inflation & investments behind our brands &
2
Employee & other expenses increase driven by
YTD Margin
6.9%
44 bps
1
-9 bps
0 bps
7.2%
organization.
2
2
1. Other expenses/income includes depreciation
12
Volume growth in combination with margin development resulting in double digit Gross Profit and EBIT growth
Margin improvement….
…resulting in strong profit growth
+44 bps
42.6 %
43.0 %
+10.9%
3,831
3,454
+35 bps
6.9 %
7.2 %
+15.4%
642
556
GP Margin
EBIT Margin
GP
EBIT
FY24 FY25
13
Design To Win | Maharashtra distributor network redesign to unlock growth in one of our largest markets
Design To Win
Right distribution network
Right Distributor Partners
Right Commercial Model
Right Route To Consumer
Strategic Rationale
Business was under-served (eg no next day delivery)
Service Improvement via Advanced Analytics
c.1/3rd of districts no distributor
FROM…
Distribution partners overhaul
Grow with right partners
Strategic partner meet
Additional warehousing space
Fixed margin structure to pay for performance
TO…
Increase manpower dedicated to UBL
Advanced Technology usage
Impactful brand experience
cooler placement
Inconsistent service delivery
Best in class service delivery
c.50% of outlets not linked to closest distributor
Winning in some stores
Winning in all stores
14
Putting consumers & customers at the heart of our business…
1
2
Portfolio
Innovation
3 Manufacturing footprint
4
Execution
5 Policy Advocacy
Non exhaustive list of initiatives
Outlook
▪
▪
▪
Building further category growth while driving the share of premium in our portfolio remains a key focus
We continue to focus on revenue management & cost initiatives, to drive margin accretion with continued investments behind our brands and capabilities despite short term margin pressure prior to the completion of our capacity expansions
We remain optimistic about the long-term growth potential of the beer category, driven by increasing disposable income, favorable demographics & premiumization
Q & A
Brewing the Good Times