United Breweries, the renowned maker of Kingfisher beer, has demonstrated its resilience and adaptability in the fiscal first quarter of the year. Despite facing some challenges, the company showcased its commitment to innovation and growth.
While the fiscal first quarter profit came in at Rs 136.34 crore, showing a modest 16.1% decrease from the previous year, this decline was primarily attributed to higher excise duties and company costs. United Breweries, however, remained undeterred as it reported a revenue from operations of Rs 5243.01 crore, marking a commendable 0.9% increase compared to the first quarter of the previous year.
The company’s strategic approach was evident in its ability to navigate challenges such as RTM changes, supply constraints, and lower inter-state sales, which contributed to a 12% decline in Q1 volumes. Despite these hurdles, the company saw a strong recovery towards the end of the quarter.
It’s noteworthy that United Breweries managed to achieve growth in certain segments. The premium segment, for instance, exhibited a promising trend with mid-teens growth for Kingfisher Ultra Max and encouraging results for Heineken Silver in focus states.
The regional breakdown further highlights the company’s dynamic presence. While there was a volume decline of 15% in the north region, growth in Uttar Pradesh helped offset this decline to some extent. The west region displayed a 2% volume growth, driven by states like Goa, Maharashtra, and Madhya Pradesh. Despite challenges, United Breweries showcased a strong and positive presence across various regions.
The company’s strategic investments were also reflected in its capex of Rs 45 crore during the quarter, primarily directed towards supply chain initiatives. Looking ahead, United Breweries remains optimistic about the industry’s long-term growth potential, driven by factors such as increasing disposable income, favorable demographics, and premiumization.
In conclusion, United Breweries’ performance in the fiscal first quarter exemplifies its ability to adapt and thrive in a dynamic market. With a focus on innovation, growth, and a positive outlook, the company continues to stand as a strong player in the industry.”