United Breweries (532478) Q4 24/25 earnings summary

Executive summary

• Q4 net sales grew 9% year-over-year to Rs 2,321 Cr, with 5% volume growth and 24% premium segment growth; full-year net sales up 10% to Rs 8,907 Cr, with premium volume up 32%.

• Premium segment outperformed, led by Kingfisher Ultra, Ultra Max, Heineken Silver, and Amstel Grande, with premiumization driving growth.

• Gross margin improved to 42.1% in Q4 and 43.0% for the year, reflecting effective revenue management and premiumization.

• EBIT rose 24% in Q4 to INR 137 crores, with full-year EBIT up 15%; profit after tax up 20% in Q4 and 8% for FY25.

• Board proposes a dividend of Rs 10 per share, maintaining last year's payout, reflecting strong results and ongoing capital investments.

Financial highlights

• Q4 FY25: Net sales Rs 2,321 Cr (+9%), EBITDA Rs 194 Cr (+15%), EBIT Rs 137 Cr (+24%), PAT Rs 97 Cr (+20%).

• FY25: Net sales Rs 8,907 Cr (+10%), EBITDA Rs 875 Cr (+14%), EBIT Rs 642 Cr (+15%), PAT Rs 441 Cr (+8%).

• Gross profit margin: 42.1% in Q4, 43.0% for FY25; EBITDA margin: 8.4% in Q4, 9.8% for FY25.

• Price/mix contributed 4% to both Q4 and FY25 net sales growth, driven by price increases and premiumization.

• Volume growth balanced across regions, with Maharashtra, Andhra Pradesh, Uttar Pradesh, and Assam as key drivers.

Outlook and guidance

• Management remains optimistic about long-term beer category growth, supported by rising disposable income, favorable demographics, and premiumization.

• Continued investments in brands, supply chain, and capabilities, with margin accretion targeted through revenue management and cost initiatives.

• CapEx to increase significantly over the next two to three years, with major investments in UP brewery, can lines, and coolers.

• Short-term margin pressure anticipated due to capacity expansion and reliance on contract manufacturing.