United Breweries Forecasts Good Times To Start From Third Quarter
Contrary to the popular belief, election is not a good time for the beer industry, says United Breweries’ Ramamurthy.
United Breweries Ltd. said it expects higher input costs and election-related disruptions to ease out, resulting in a demand revival from the September quarter.
“Price of barley has been going up for the last two-three years on account of shortage and its alternative use as the cheapest form of cattle feed,” Shekhar Ramamurthy, the alcoholic beverage maker’s managing director, told BloombergQuint. “We're cautiously optimistic that Q3 onwards the demand scenario will pick up.”
The first quarter, according to Ramamurthy, will be “tough” due to higher barley and glass prices and the general election-related disruptions.
The alcohol industry, he said, is projected to grow at 6-8 percent in the next three years.
Contrary to popular belief, election isn’t a good time for the beer industry. There is a whole host of restrictions such as hours of production, dispatch and closure of outlets.Shekhar Ramamurthy, Managing Director, United Breweries
Key Highlights: (YoY)
- Net sales up 10.7 percent to Rs 1,630 crore.
- Ebitda down 13.3 percent to Rs 172 crore.
- Ebitda margin at 10.5 percent versus 13.5 percent.
- Net profit down 25 percent to Rs 68 crore.
Shares of the Bengaluru-based company declined nearly 3 percent in today’s trade to Rs 1,384.50 apiece as of 11 am compared with the Nifty’s 0.23 percent gain.
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