United Breweries (532478) Q4 03/04 earnings summary

Executive summary

• FY04 beer volumes rose 9% to 33.10 million cases, versus estimated industry growth of 2%; market share gained 300 bps to 40%.

• Kingfisher Strong sales exceeded 10 million cases, up 29% against 3% growth in the strong-beer segment; Kingfisher Premium Lager sold 18.8 million cases, up 1.56%.

Financial highlights

• Net turnover was ₹453.68 crore, up from ₹395.35 crore; net sales grew 14.74% to ₹453.68 crore.

• PBIDT was ₹43.33 crore versus ₹43.68 crore; PBT before a non-recurring item was ₹7.41 crore, compared with ₹3.75 crore.

• Reported PBT was ₹4.20 crore after a ₹3.22 crore non-recurring provision; PAT was ₹2.78 crore versus ₹1.44 crore, and EPS was ₹1.56 versus ₹0.81.

• Consolidated net loss was ₹12.29 crore versus ₹9.06 crore; consolidated net sales after excise were ₹494.97 crore versus ₹403.79 crore, with FY04 including the JV and not comparable to FY03.

Outlook and guidance

• Gradual deregulation and beer-specific tax treatment are expected to broaden access and support industry growth, though progress has been slow and dependent on policy changes.

• Capacity and technology investment will continue to meet expected demand; promotions, brand building and pint-pack launches remain key growth initiatives.

• Contract brewing capacity in Australia and New Zealand is intended to expand brand reach and improve retention; further international-brand opportunities are linked to the Scottish & Newcastle partnership.