United Breweries Limited · NSE:UBL
United Breweries — Q3 FY2023 Earnings Presentation
13 slides from United Breweries's earnings presentation, Feb 9, 2023
Slide 1: Intimation of Financial Results Earnings Call
February 09, 2023 1. Department of Corporate Services, 2. Department of Corporate Services, BSE Limited, National Stock Exchange of India Ltd., Floor 25, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai – 400 051 Scrip Code: 532478 Scrip Code: UB
Slide 2: Investec India invites you to United Breweries Q3 FY23 Earnings call
Investec India invites you to United Breweries Ltd. Q3 FY23 Earnings call Post Earnings Business Update Diamond Pass Registration Friday, February 10, 2023 https://bit.ly/3I1l9WE 4:00pm Management Team Mr. Radovan Sikorsky, Director and CFO Mr. PA Poonacha, Finance and Investor Relations Dial-In Num
Slide 3: Investor Presentation Quarter ended December 2022
Investor Presentation Quarter ended December 2022 5
Slide 4: Disclaimer
Disclaimer This presentation contains forward-looking statements with regard to the financial position and results of UBL’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-loo
Slide 5: Key Results Highlights for the Quarter
Key Results Highlights for the Quarter o Volume growth of 4% in the quarter vs prior year, primarily driven by Telangana, Rajasthan and Karnataka. o The premium segment recorded growth ahead of the total portfolio, growing 13% vs 4% total portfolio growth; o In a volatile environment, EBITDA for the
Slide 6: Q3' 22/23 Results
Q3’ 22/23 Results Q3 Results (standalone) Data in Rs. Cr. Dec-22 Dec-21 Change (%) Net Sales 1,611 1,581 2% COGS (937) (791) 18% Gross Profit 674 790 -15% Employee expenses (145) (147) -1% Other expenses (453) (470) -4% Other income 13 6 115% EBITDA 90 180 -50% Depreciation (50) (53) -5% EBIT 39 127
Slide 7: YTD' 22/23 Results
YTD’ 22/23 Results YTD Results (standalone) Data in Rs. Cr. Dec-22 Dec-21 Change (%) Net Sales 5,727 4,125 39% COGS (3,191) (2,057) 55% Gross Profit 2,536 2,068 23% Employee expenses (432) (394) 10% Other expenses (1,543) (1,240) 25% Other income 38 17 126% EBITDA 598 451 33% Depreciation (160) (164
Slide 8: Regional volume performance vs PY
Regional volume performance vs PY Volume Growth Q3, YTD (+4%, +43%) Continued recovery and growth over COVID affected PY across most markets East (+3%, +50%) North (+13%, +38%) o Driven by ↑ volume in West Bengal, o Driven by higher volume in Rajasthan, Orissa and Northeastern states Haryana & Uttar
Slide 9: Net Sales growth driven by higher volume
Net Sales growth driven by higher volume Revenue Q3 (in Rs. Cr) 79 (5%) -114 (-7%) 65 (4%) 1,611 1,581 Net Rev PY Volume Variance Price variance Mix variance Net Rev CY o Higher volume driven by strong growth in Telangana, Rajasthan and Karnataka o Negative state mix due to differential volume growt
Slide 10: Net Sales growth driven by higher volume
Net Sales growth driven by higher volume Revenue YTD (in Rs. Cr) 246 (6%) -416 (-10%) 1,772 (+43%) 5,727 4,125 Net Rev PY Volume Variance Price variance Mix variance Net Rev CY o Volume growth of 43% spread across markets (LY impacted by C-19) o Price increase implemented in Kerala in Q3 o Negative
Slide 11: Margin recovery despite increased commodity prices
Margin recovery despite increased commodity prices EBIT Y TD (in Rs. Cr) 468 (38) (283) 4 439 288 EBIT PY Gross Profit Employee expenses Other expenses/income Depreciation EBIT CY YTD Margin 7.0% -586 bps 201 bps 336 bps 118 bps 7.7% o Gross profit growth driven by volume growth and price increases.
Slide 12: Outlook and summary
Outlook and summary o Focus remains on building further category penetration while driving the share of premium in the portfolio. o Inflation pressure on Cost of goods sold is expected to continue in the shorter term, impacting gross margins. UBL is in the process of pursuing further price increases
Slide 13: Thank You
Thank You be