United Breweries' shares rose 9.7 percent on the BSE in Wednesday's intraday trade after Heineken N.V., the promoter group, announced that India net revenues (before exceptional items and amortization of acquisition; beia) grew by 20% organically in the January to March quarter, driven by volume and a positive price mix.
United Breweries soars 10% on prospects of strong sales in the March quarter.
United Breweries' shares rose 9.7 percent on the BSE in Wednesday's intraday trade after Heineken N.V., the promoter group, announced that India net revenues (before exceptional items and amortization of acquisition; beia) grew by 20% organically in the January to March quarter, driven by volume and a positive price mix.
United Breweries Limited
United Breweries (UBL), part of the Heineken group, is India's largest beer manufacturer. The company manufactures and promotes packaged drinking water and soda, as well as internationally recognized beer and non-alcoholic beverages.
Its extensive product portfolio includes brands like Kingfisher Strong, Kingfisher Premium, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Kingfisher Storm, Heineken, Heineken Silver, Amstel, and Heineken 0.0, as well as Kingfisher Premium Water and Kingfisher Soda.
Meanwhile, UBL's board of directors is set to convene on May 7, 2024, to review financial data for the quarter and year ended March 31, 2024.
While announcing December quarter results on February 8, management stated that they are positive about the industries' long-term development potential, which is driven by rising disposable income, attractive demographics, and premiumisation.
Elara Capital analysts believe UBL's volume would expand by 9% year on year (Y-o-Y) in the March quarter as the company gains market share in some North Indian states.
Profitability-wise, the brokerage expects gross margin to be stable quarter-on-quarter (Q-o-Q) due to stable barley and glass prices, while Ebitda margin may improve 100bps Q-o-Q to 9%, much lower than pre-Covid levels (13.4 percent in FY20), as the company continues to invest in supply chain initiatives and higher end portfolio to drive better volume growth in the premium portfolio, according to the brokerage firm's quarterly review report.
