- United Breweries‘ net income for the first quarter was 1.84 billion rupees, marking a 6.4% increase year-over-year, but it fell short of the estimated 2.04 billion rupees.
- The company reported revenue of 53.8 billion rupees, a 7.4% decrease compared to the previous year, contrary to an estimated 27.19 billion rupees.
- Total costs were reduced by 7.9% year-over-year, amounting to 51.4 billion rupees.
- Other income experienced a 51% increase, reaching 109.5 million rupees.
- The premium portfolio of United Breweries grew by 46% during the quarter, with significant contributions from brands like Kingfisher Ultra, Amstel Grande, and Heineken Silver.
- The company invested 1.36 billion rupees in capital expenditures, focusing on commercial and supply chain improvements for future growth.
- Net sales increased by 16% in the first quarter, driven by an 11% growth in volume, further supported by pricing strategies and premiumization.
- Market analysts’ recommendations include 4 buys, 6 holds, and 9 sells.
United Breweries on Smartkarma
Analysts on Smartkarma, like Nimish Maheshwari, are closely monitoring United Breweries and its recent developments in Telangana. In a research report titled “United Breweries On and Off with Telangana Government,” the analyst discusses how the brewery resumed beer supplies in the region after a standoff over pricing and unpaid dues. This situation sheds light on the significant influence breweries wield in shaping regulatory policies in India’s top beer market. The resolution of this issue not only ensures crucial revenues for both the state and the brewery but also underscores the ongoing challenges related to regulatory and pricing matters in the country’s beer industry.
A look at United Breweries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
United Breweries Limited, a prominent manufacturer of alcoholic beverages, has received mixed ratings across different aspects of its operations. With a Value score of 2, the company may not be considered undervalued according to Smartkarma’s scoring system. However, United Breweries fares better in terms of Dividend, Growth, Resilience, and Momentum, with scores of 3 for each. This suggests that the company is moderately positive in terms of dividends, growth potential, ability to withstand economic challenges, and overall market momentum.
Despite its average value rating, United Breweries seems to have a stable outlook for the future, with strengths in dividend payouts, growth opportunities, resilience in the face of uncertainties, and positive momentum in the market. As a global provider of beer, malt liquor, and other beverages, the company is well-positioned to continue serving its customers and potentially expand its market presence in the long term. Investors may find United Breweries an interesting prospect given its balanced performance across various key factors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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