United Breweries Q4 profits decline sharply to Rs. 6.7 crore

United Breweries Limited (UBL) reported its results for the quarter ended March 31, 2017, on Wednesday.

Total sales for this quarter, Q4FY17, came in at Rs. 1112.7 crores. This represents 8.8 per cent sequential increase and 8.2 per cent YoY decline.

Operating profit (EBIT) for the recently concluded quarter amounted to Rs. 17.8 crore and the EBIT margin stood at 1.6 per cent.

It reported PAT of Rs. 6.7 crore which represents a sequential QoQ decline of 86.1 per cent and a YoY decline of 87.2 per cent. 

The main reason for this sharp decline in profits is destocking arising from the ban on the sale of liquor in restaurants and outlets within 500 meters of state and national highways as 35-40% of liquor outlets are located along highways.

The Board of Directors has recommended a dividend of Rs. 1.15 per equity share for the face value of Rs. 1 each.

Today, the stock opened at Rs. 773, almost 5 per cent down from Wednesday’s closing and touched an intra-day high and low of Rs. 805.45 and Rs. 773 respectively on BSE.

UBL is engaged in the business of manufacture, purchase and sale of beer. It controls ~52% of the total beer manufacturing capacity in India. Its flagship brands are Kingfisher Beer and London Pilsner.