United Breweries Limited · NSE:UBL
United Breweries — H1 FY2007 Earnings Presentation
13 slides from United Breweries's earnings presentation, October 2006
Slide 1: United Breweries Limited half yearly briefing – Apr 06- Sept 06
United Breweries Limited half yearly briefing – Apr 06- Sept 06 Presentation October 2006
Slide 2: Key performance highlights
Key performance highlights • 28% volume growth • Growth of Kingfisher mild 22%, strong 48% • KF Strong now No. 1 Brand in India • KF Premium remains No.1 • EBITDA Rs.87 Crore as against Rs.64 Crore, growth of 35% versus H1 last year • Profit after tax - over 100% growth • Operating margins remain at
Slide 3: Operations Review
Operations Review
Slide 4: UB: Growth – Sept 06 vs Sept 05
UB : Growth – Sept 06 vs Sept 05 Growth surge sustained… Strong, 32.50% 24.80% 18.60% Mild, 16.80% H1 2006-07 … specially in the Strong beer segment 30.09.05 30.09.06 *Combined Operations
Slide 5: Kingfisher Growth
KINGFISHER GROWTH 48% • K F Strong now the No. I strong beer brand AND No.I top 22% selling brand in India • K F Premium 2nd top selling brand in India, and No.1 Mild K F Premium K F Strong beer brand
Slide 6: Market Share
Market Share 47.5% 30.6% 10.6% 5.4% 3.6% 2.3% UBL SAB Mohan Mt. Fosters Others Group M Shiv
Slide 7: Market Share
Market Share 38.3% 5.40% MM 2.30% Fosters 47.5% 30.6% 10.6% 3.6% UBL Group SAB + Mt. Shiv Others
Slide 8: Competition
Competition • International players entry likely to stimulate market growth – APB: Possible acquisition of Manav, Lilasons and in addition to Arlem – Carlsberg : License for Greenfield in Rajasthan; acquisition of Himneel – Budweiser: Stake in Crown/AP for Greenfield • Fosters acquisition by SABMill
Slide 9: Financial Review
Financial Review
Slide 10: Results Sept 06 United Breweries Limited
Results Sept 06 Half year ended United Breweries Limited 30.9.2006 30.9.2005 In rupees crore Unaudited Net Sales/Income from operations 415.12 272.00 Other Income 5.37 9.08 Total Income 420.49 281.08 50% Expenditure Cost of production 193.71 128.79 Advertisement & Sales Promotion 69.19 51.42 Selling
Slide 11: EBITDA Sept 05 vs Sept 06
EBITDA SEPT 05 Vs SEPT 06 Revenue effect in Rs. Crore Cost effect in Rs. Crore Higher Higher Decrease price of Ad in Interest spends, Inputs, Income, Vol. (16.18) (6.16) (3.70) driven increase, 35.93 Increase Increase on other realisation Higher Higher Selling , 54.39 operating staff Costs, costs, c
Slide 12: Key Ratios
Key Ratios UBL As at As at Rupees Million 30.9.06 30.9.05 Debt 3,058 1,779 Net Worth 5,479 5,196 GEARING 0.56 0.34 PBIDT 870 643 Interest 120 104 INTEREST COVER 7.25 6.19 Capital Employed 8,538 6,976 ROCE 10% 9% for the qtr for the qtr EPS 18.85 7.82 EPS in the current year is on a face value of Re
Slide 13: Outlook
Outlook • Expect strong double digit growth, led by strong beer • Focus on building brand equity • MAPL debt restructuring now complete, savings will accrue to combined operations in H2 • KBDL operations to be merged with UBL by end March 2007 • Continuing price control in major markets • Real infla