United Breweries (532478) Q3 24/25 earnings summary

Executive summary

• Q3 net sales rose 10% year-over-year to Rs 1,998 Cr, driven by 8–8.4% volume growth and 33% premium segment growth, with market share gains across most regions and strong performance from new launches.

• EBIT for Q3 was INR 90 crore, down 24% year-over-year, reflecting continued investments in organization and supply chain ahead of peak season and one-time exceptional costs.

• Profit after tax for Q3 fell 55% year-over-year, while YTD EBIT and profit after tax grew 13% and 5%, respectively.

• Launched Kingfisher Flavours targeting younger consumers, with initial rollout in Mumbai, Goa, and Daman.

• Announced major greenfield brewery investment in Uttar Pradesh, first in 12 years, to meet future capacity and premium demand.

Financial highlights

• Premium volumes grew 33% year-over-year, led by Kingfisher Ultra and Ultra Max.

• Q3 gross margin at 43.1% (down 86 bps year-over-year); YTD gross margin at 43.3% (up 46 bps year-over-year).

• Q3 EBITDA margin at 7.6% (down 174 bps); YTD EBITDA margin at 10.3% (up 31 bps).

• One-time exceptional cost of INR 26 crore in Q3 for productivity program, expected to yield INR 50 crore annual savings from 2025.

• Standalone Q3 net profit: ₹3,826 lakh; consolidated: ₹3,852 lakh.

Outlook and guidance

• Expectation of continued 6–8% volume growth in the next fiscal year, in line with category growth.

• Gradual improvement in gross margins anticipated, driven by premiumization and operational investments.

• Focus remains on category growth, increasing premium share, and ongoing investments in brands and capabilities.

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