United Breweries Limited · NSE:UBL
United Breweries — Q1 FY2007 Earnings Presentation
12 slides from United Breweries's earnings presentation, August 2006
Slide 1: United Breweries Limited quarterly briefing – Apr 06- Jun 06
United Breweries Limited quarterly briefing – Apr 06- Jun 06 Presentation August 2006
Slide 2: Key performance highlights
Key performance highlights • 23% volume growth • Kingfisher growth mild 18% (Industry 20.4%), strong 41% (Industry 28.8%) • EBITDA (Adjusted for KBDL) Rs. 75.49 Crore, growth of 54% versus Q1 last year • Profit after tax (unadjusted) 100% growth • Growth in operating margins • Merger plans on track
Slide 3: Industry Growth
Industry Growth Region growth Comment North 77% Primarily driven by policy change West 17% Change in duty policy on mild beer in Maharashtra East 0% Insufficient supply on account of growth in North South 11% Growth in Kerala & TN offset by decline in Karnataka due to duty increase Central 9% Growth
Slide 4: Profitability Statement United Breweries Limited
Profitability Statement Quarter ended Quarter ended United Breweries Limited 30.6.2006 30.6.2005 In rupees crore Unaudited Unaudited Income Net Sales/Income from operations 192.06 155.10 Other Income 2.40 7.86 Profits from KBDL operations 1.28 7.56 Total Income 195.74 170.52 Expenditure Cost of Prod
Slide 5: EBITDA June 05 Vs June 06
EBITDA JUNE 05 Vs JUNE 06 Revenue effect in Rs. Crore Cost effect in Rs. Crore Higher Ad Drcrease in Reduction spends, Interest in other (3.75) Income, OH, 4.76 Vol. driven increase, Higher staff (5.46) Gain due of 8.35 costs, efficiencies (0.87) , 2.21 Increase Low er on Contract realisation, profi
Slide 6: Market Share
Market Share 80% 70% 60% 50% percentage 40% points 30% 20% 10% 0% 1 2 3 4 5 6 period / segment Bar chart colours Market Share in % Qtr Jun 06 2005-06 Qtr Jun 05 Overall - UBL 1 35% 40% 37% Mild - UBL 2 60% 67% 65% Strong - UBL 3 24% 27% 24% Overall - Combined 4 44% 50% 48% Mild - Combined 5 65% 71%
Slide 7: Growth falling short of industry
UBL Combined Industry Qtr Jun 06 Qtr Jun 05 Qtr Jun 06 Qtr Jun 05 Qtr Jun 06 Qtr Jun 05 Volume in lac cases 15.67 12.69 19.40 16.40 43.50 34.40 Growth % 23% 18% 26% • Growth both in UBL & the combined beer business falling short of industry growth – a known phenomenon as indicated in the previous sl
Slide 8: Summary Balance Sheet
Summary Balance Sheet UBL As at As at As at COMBINED BUSINESS Rupees Million 30.6.06 30.6.05 31.3.06 30.6.06 31.3.06 Sources Share Holders Funds 5,656 5,155 5,380 2,567 2,226 Loan Funds 2,438 1,492 2,409 5,173 5,544 Total Sources 8,094 6,646 7,790 7,740 7,770 Application Fixed Assets 1,271 1,116 1,1
Slide 9: Key Ratios
Key Ratios UBL As at As at As at COMBINED BUSINESS Rupees Million 30.6.06 30.6.06 31.3.06 30.6.06 31.3.06 # # # Debt incl. guarantee 2,776 1,830 2,747 5,173 5,544 ( # subsidairy guarantee 338) Net Worth 5,656 5,155 5,380 2,567 2,226 GEARING 0.49 0.35 0.51 2.02 @ @ PBIDT (@ kbdl 241.7) 755 489 1,148
Slide 10: Average Realization and Cost of sales
Average Realization and Cost of sales Sales Realization Cost Index SR 120 COS 111 100 100 105 80 60 61 57 55 40 20 0 31-03-05 31-03-06 June qtr 31-03- 2007
Slide 11: Share Movements
Share Movments Index Rs. Per shares 31.03.05 6493 323 30.04.05 6154 409 31.05.05 6715 440 S & N Infusion 30.06.05 7194 472 31.07.05 7635 510 The index values are from a 31.08.05 7805 647 30.09.05 8634 651 Performance base of 1000 as on 31.3.05 31.10.05 7892 675 & 30.11.05 8789 680 The price of UBL s
Slide 12: Outlook
Outlook • Merger of ABDL & MBDL into UBL – procedures complete court order awaited • Work started on green field projects & expansion of existing capacities • Continuing management of costs / overheads & Cash