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 strong premium segment momentum, with premium volume up 33%.

• 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 exceptional costs.

• Launched new products, including Kingfisher Flavours and Amstel Grande, targeting younger and premium consumers.

• Major greenfield brewery investment announced in Uttar Pradesh to meet future capacity and premium demand.

• Productivity program implemented, incurring a one-time exceptional cost of INR 26 crore, expected to yield INR 50 crore annual savings from 2025.

Financial highlights

• 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).

• Q3 profit after tax margin at 1.9% (down 274 bps); YTD profit after tax margin at 5.2% (down 27 bps).

• Standalone Q3 revenue from operations: ₹4,42,465 lakh; consolidated: ₹4,42,655 lakh.

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

Outlook and guidance

• Expect continued 6%-8% volume growth in the coming fiscal year, aligned with category trends.

• Premiumization and new capacity investments expected to drive long-term margin improvement.

• Management remains optimistic about beer category growth, citing favorable demographics, rising disposable income, and premiumization.

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