United Breweries (532478) Q1 24/25 earnings summary

Executive summary

• Net sales for Q1 FY25 increased 9% year-over-year to ₹2,473 Cr, driven by 5% volume growth and a 44% surge in premium segment volumes, despite election-related disruptions.

• EBIT grew 29% year-over-year to ₹234 Cr, with EBIT margin reaching 9.5%, the highest since Q2 FY22/23.

• Gross profit increased 15% to ₹1,064 Cr, with gross margin expanding by 247 bps to 43.0%.

• Premium brands, especially Ultra, Ultra Max, and Heineken Silver, saw strong double-digit growth; Heineken Silver grew nationally despite Karnataka permit delays.

• Market share losses in select states were temporary and attributed to election restrictions; share has since rebounded.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹5,80,910 lakhs, up from ₹5,24,140 lakhs in Q1 FY24.

• EBITDA increased 25% year-over-year to ₹292 Cr, with EBITDA margin up 155 bps to 11.8%.

• Standalone net profit for Q1 FY25 was ₹5,946 lakhs, compared to ₹4,404 lakhs in Q1 FY24.

• Cost of goods sold rose 4%, while employee and other expenses increased 24% and 8% respectively.

• Finance costs remained stable, and other income declined 30%.

Outlook and guidance

• Optimistic on long-term beer category growth in India, with focus on premiumization, market share gains, and expanding premium brands to more states.

• Targeting EBIT margin improvement from current 6% to 10-11% over 2-3 years, driven by premium growth and operational efficiency.

• Ongoing investments in capacity, innovation, supply chain, and consumer engagement.