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Motilal Oswal: United Breweries Posts Weak Q2; Recovery Gradual, Unlike Peers  

Motilal Oswal: United Breweries’ Weak Q2 Results; Recovery Gradual, Unlike Peers

Bottles of Kingfisher Beer, made by United Breweries Ltd., are arranged for a photograph in a liquor store in New Delhi. (Photographer Adam Ferguson/Bloomberg News)
Bottles of Kingfisher Beer, made by United Breweries Ltd., are arranged for a photograph in a liquor store in New Delhi. (Photographer Adam Ferguson/Bloomberg News)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

United Breweries Ltd.’s Q2 results were weak – with 48%/42.9% YoY volume/sales decline and 79%/96.5% YoY Ebitda/profit after tax decline – although better than our expectations.

These numbers are also starkly below approximately 3%/6% volume/sales decline reported by Alcobev peer United Spirits Ltd. last week.

This once again highlights that the more in-home consumption dominates, spirits consumption would do better.

This trend is likely to continue over the next few quarters as well.

Click on the attachment to read the full report:

Motilal Oswal United Breweries Q2FY21 Result Update.pdf

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