United Breweries Q4 Review - Story Intact; Near-Term Headwinds Persist: Dolat Capital
Unlabelled bottles of beer move along a conveyor belt on the production line at a brewery (Photographer: Waldo Swiegers/Bloomberg)

United Breweries Q4 Review - Story Intact; Near-Term Headwinds Persist: Dolat Capital

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.

Dolat Capital Report

United Breweries Ltd.’s Q4 FY21 operating revenue performance was in-line.

Sharp decline in other operating expenses (down 12% year-on-year in Q4 FY21, down 12% YoY in Q4 FY20) was key positive surprise.

Opex reduction was despite 9% YoY volume growth. Sustainability of costs reduction is the key.

The company’s market leadership, product portfolio, brand positioning, premiumisation, costs/capex consciousness and superior execution makes it an attractive long-term play.

But, barley price inflation (approximately 15% YoY) and second wave of Covid-19 in key beer season are near term dampener.

Click on the attachment to read the full report:

Dolat Capital United Breweries Q4FY21 Result Update.pdf


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