United Breweries (532478) Q2 24/25 earnings summary

Executive summary

• Q2 net sales rose 12% year-over-year to Rs 2,115 Cr, driven by 5% overall volume growth and a 27% surge in premium segment volumes, led by Kingfisher Ultra, Ultra Max, and the launch of Amstel Grande.

• EBIT and profit after tax increased 23% year-over-year in Q2, reflecting strong operational discipline and premiumization strategy.

• Maintained double-digit revenue growth for the sixth consecutive quarter, with year-to-date net sales up 10% and profit after tax up 25%.

• Amstel Grande, a new premium strong beer, was launched with plans for rapid nationwide rollout.

• Unaudited standalone and consolidated financial results for the quarter and year to date ended September 30, 2024, were approved by the Board.

Financial highlights

• Q2 gross margin was 43.8% (down 69 bps year-over-year but up 81 bps sequentially); EBIT grew 23% year-over-year; EBITDA margin improved by 80 bps to 11.2%.

• Standalone Q2 revenue from operations was ₹474,152 lakhs, with net profit at ₹13,225 lakhs; consolidated Q2 revenue was ₹474,356 lakhs, with net profit at ₹13,233 lakhs.

• YTD gross margin improved by 104 bps to 43.4%; YTD EBIT up 26% with margin expansion of 116 bps.

• Q2 profit after tax margin rose to 6.3% from 5.7% last year.

• Standalone basic and diluted EPS for Q2 were ₹5.00; consolidated EPS for Q2 was also ₹5.00.

Outlook and guidance

• Continued focus on premiumization, category growth, and increasing premium share in the portfolio.

• Amstel Grande rollout targeted to reach 65-70% of the country by end of next year.

• Ongoing emphasis on operational discipline, supply chain expansion, and local production to support growth.

• Optimism for long-term beer category growth, supported by rising disposable income, favorable demographics, and premiumization trends.