During Wednesday’s trading session, shares of a part of the HEINEKEN company and the largest beer manufacturer in India moved up by nearly 2.3 percent on BSE, after entering into a leasing agreement for capacity expansion in Andhra Pradesh.
With a market capitalisation of Rs. 53,938.6 crores, at 10:45 a.m., the shares of United Breweries Limited were trading in the green at Rs. 2,040 on BSE, up by around 1 percent, as against its previous closing price of Rs. 2,022.9. The stock has delivered positive returns of nearly 8 percent in the last one year, but has fallen by more than 8 percent in one month.
What’s the News
According to recent regulatory filings with the stock exchanges, United Breweries Limited (UBL) is expanding its production capacity in Andhra Pradesh to meet growing consumer demand and ensure the continued availability of Kingfisher beer. The expansion became effective on 20th May, following the receipt of excise approval on 19th May.
This strategic move aligns with shifting consumer preferences and favourable regulatory developments supporting lower-alcohol beverages. The expansion strengthens UBL’s presence in the state and positions the company to effectively meet increased demand, particularly during peak seasons.
UBL currently operates a wholly-owned brewery in Ranasthalam, located in the Srikakulam district. To further strengthen its regional footprint and enhance supply chain agility, the company is increasing its manufacturing capabilities through an additional facility leased from Ilios Breweries Private Limited. This added capacity is expected to support UBL’s long-term growth and improve distribution efficiency across Andhra Pradesh.
Financial Performance
United Breweries reported a marginal growth in revenue from operations, experiencing a rise of nearly 9 percent YoY, increasing from Rs. 2,133 crores in Q4 FY24 to Rs. 2,323 crores in Q4 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 82 crores to Rs. 98 crores, representing a significant growth of around 19.5 percent YoY. Volume growth of 5 percent in Q4 FY25 was mainly driven by Andhra Pradesh, Uttar Pradesh, Maharashtra & Assam, partially offset by Telangana & Karnataka.
UBL remains optimistic about the long-term growth potential of the beer category, driven by increasing disposable income, favourable demographics & premiumization.
About the Company
United Breweries Limited, part of the HEINEKEN company, is primarily engaged in the business of manufacturing and marketing of packaged drinking water and soda, internationally recognised beer, and non-alcoholic beverages.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
