United Breweries Q4 Review - Demand Outlook Challenging; Material Costs Rising: Motilal Oswal
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Motilal Oswal Report
United Breweries Ltd. reported strong results over a lockdown impacted Q4 FY21.
Nevertheless, they came in below our expectations on all fronts – as the pace of sequential recovery was slower than that seen in Q3 FY21. Considering:
Some impact from the lockdown in Maharashtra, Delhi, and Karnataka for a month during the key season for beer and
The possible write-offs of perishable raw materials, we have cut our FY22 earnings per share forecasts by ~20%.
However, we have not factored in any further risks from lockdown extensions, other states imposing lockdowns, and the possible impact of rising barley costs, all of which could have a significant impact – as Q1 contributes 35–45% to the company’s full-year Ebitda.
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