The share of this mid-cap beverage company is in focus after reporting an increase in net profits by over 114 percent QoQ, according to BSE filings.
Results
In the quarter ending June 30, FY25, United Breweries Ltd.(UBL) demonstrated robust financial performance with significant gains in both net profit and revenue, which reflected in the surge in its share price.
The company’s consolidated revenue from operations increased by 10.8 percent year-on-year, reaching Rs.5,811.28 crores, up from Rs.5243.01 crores in the corresponding quarter of the previous fiscal year.
On a quarterly basis, revenue experienced a notable rise of 21.35 percent, compared to Rs.4,788.68 crores in Q4 of FY24.
Profit After Tax (PAT) grew by 27.5 percent to Rs.173.8 crores, compared to Rs. 136.34 crores in the same quarter of FY24. Additionally, net profit saw a remarkable surge of 113 percent from Rs.81.55 crores in Q4 of FY24.
United Breweries Ltd. has demonstrated an encouraging improvement in its profit margins. Over the past year, the Gross Profit Margin climbed to 43 percent, up from 40.6 percent.
Additionally, the Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margin rose to 11.8 percent, compared to 10.3 percent previously.
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Price Movement
On Friday’s trading session at around 9.30 am, the share price of this mid-cap company reached an intra-day high of Rs.2,144 per share from its previous closing price of Rs.2,107.75 apiece.
Dividend payment
For the quarter ending March 2024, the company declared a dividend of Rs.10, which translates to a dividend yield of 0.47 percent, and the record date for the same is July 26, 2024.
Consumer defensive stocks don’t always provide dividends, but United Breweries Ltd. offers them as a way to reward its shareholders.
Revenue Mix
United Breweries Ltd. derives 99.98 percent of its revenue from beer manufacturing, with the remaining 0.01 percent coming from non-alcoholic beverages.
Shareholding Pattern
As per the shareholding pattern of June 2024, the Promoters hold a 70.84 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.43 percent stake, Domestic Institutional Investors (DII) hold a 16.38 percent stake, while Government and Retail Investors hold 1.16 percent and 5.19 percent stake in UBL, respectively.
Company Profile
United Breweries Limited (UBL) is engaged in the business of manufacture and sale of beer and non-alcoholic beverages. The company markets its products under the flagship brands Kingfisher and Heineken.
Written by – Siddesh S Rakar
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