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Bengaluru: United Breweries Ltd (UBL), the country’s biggest brewer, on Friday said net profit fell 97% to Rs 4.01 crore for the second quarter ended September, from Rs 115 crore a year ago.
The maker of Kingfisher beer posted a 37% decline in revenue to Rs 2272.29 crore in the period under review as compared to the same period last year when it had clocked Rs 3589.66 crore net sales.
In a stock exchange filing, Heineken-controlled UBL said the revenue recovery rate improved from the sequential first quarter, led by resumption of supplies in all markets based on state-wise lifting of lockdown, reduction in excise burden in states of Odisha and Andhra Pradesh and cost control with focus on working capital management.
The brewer had commenced the year with no supplies for almost half of the first quarter because of a ban on liquor sales. Sales were impacted even after the gradual reopening of the business, as parts of the trade such as on-premise sales remained closed for the full quarter.
UBL stated that volumes in the second quarter were 48% lower than the corresponding quarter of the previous year compared to a 77% decline in the first quarter. Key markets such as Karnataka, Tamil Nadu and Goa witnessed sharp recovery and posted volumes in September ahead of the previous year.
Volumes of strong beer recovered faster than mild beer across markets, the filing stated.
Overall cost management resulted in Q2 earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 73 crore, showing sequential improvement compared to EBITDA loss of Rs 94 crore in the previous quarter.
UBL said while the pandemic continues to lend considerable uncertainty on consumer demand, the monthly recovery is encouraging and the company is optimistic that it will strengthen its leading market position.
The maker of Kingfisher beer posted a 37% decline in revenue to Rs 2272.29 crore in the period under review as compared to the same period last year when it had clocked Rs 3589.66 crore net sales.
In a stock exchange filing, Heineken-controlled UBL said the revenue recovery rate improved from the sequential first quarter, led by resumption of supplies in all markets based on state-wise lifting of lockdown, reduction in excise burden in states of Odisha and Andhra Pradesh and cost control with focus on working capital management.
The brewer had commenced the year with no supplies for almost half of the first quarter because of a ban on liquor sales. Sales were impacted even after the gradual reopening of the business, as parts of the trade such as on-premise sales remained closed for the full quarter.
UBL stated that volumes in the second quarter were 48% lower than the corresponding quarter of the previous year compared to a 77% decline in the first quarter. Key markets such as Karnataka, Tamil Nadu and Goa witnessed sharp recovery and posted volumes in September ahead of the previous year.
Volumes of strong beer recovered faster than mild beer across markets, the filing stated.
Overall cost management resulted in Q2 earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 73 crore, showing sequential improvement compared to EBITDA loss of Rs 94 crore in the previous quarter.
UBL said while the pandemic continues to lend considerable uncertainty on consumer demand, the monthly recovery is encouraging and the company is optimistic that it will strengthen its leading market position.
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