United Breweries Limited · NSE:UBL
United Breweries — Q4 FY2021 Earnings Presentation
17 slides from United Breweries's earnings presentation, Apr 28, 2021
Slide 1: Intimation of Financial Results Earnings Call
April 28, 2021 1. The Secretary-Listing Department 2. The Manager-Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot. C/1, G Bl. Dalal Street, Fort Bandra-Kurla Complex, Bandra (East) Mumbai - 400 023 Mumbai – 400 051 Sc
Slide 2: Q4FY21 Financial Results Earnings Call invitation
United Breweries Ltd. Q4FY21 Financial Results Earnings Call Wednesday, April 28, 2021, at 2:00 PM IST Register Investec India is pleased to host the management of United Breweries Ltd. for a conference call with investors and analysts to discuss their Q4FY21 Financial Results Earnings Call Wednesda
Slide 3: Investor Presentation Year ended March 2021
Investor Presentation Year ended March 2021 1
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: Exceptional year with resilient response
Exceptional year with resilient response Consumers Thematic campaigns Employees Communities Risen to the challenge Continued support & relief Costumers Trade support • Exceptional year with lock downs, prolonged on trade closures and Covid related duty increases. • Focus has been on health & safety
Slide 6: Key Results Highlights
Key Results Highlights o Strong sequential volume recovery post lock down, with Q4 net sales growth of 9%. o During Q4 many states saw strong recovery incl. Karnataka and Maharashtra. Telangana demand remains subdued due to Covid cess negatively impacting consumer prices. o With an agile approach on
Slide 7: Q4 20/21 Results
Q4 20/21 Results Q4 Results (standalone) Data in Rs. Cr. Mar-21 Mar-20 Change (%) Net Sales 1,543 1,424 8% COGS (741) (699) 6% Gross Profit 802 725 11% Employee expenses (133) (128) 4% Other expenses (408) (465) -12% Other income 12 1 1797% EBITDA 273 133 105% Depreciation (62) (73) -15% EBIT 211 59
Slide 8: YTD 20/21 Results
YTD 20/21 Results YTD Results (standalone) Data in Rs. Cr. Mar-21 Mar-20 Change (%) Net Sales 4,241 6,505 -35% COGS (2,036) (3,160) -36% Gross Profit 2,204 3,344 -34% Employee expenses (482) (500) -3% Other expenses (1,343) (1,970) -32% Other income 50 9 451% EBITDA 430 884 -51% Depreciation (232) (
Slide 9: Regional volume performance vs PY
Regional volume performance vs PY Volume Growth Total Company (Q4, YTD) (+9%, -39%) – Recovery in Q4 East (+26%, -39%) North (+13%, -35%) o Growth across most markets. o Growth in Q4 driven by Haryana, Rajasthan, Punjab, Chandigarh and o Substantial growth in West Bengal Himachal Pradesh. (>100%) on
Slide 10: Continued expansion of premium brand portfolio
Continued expansion of premium brand portfolio Ultra family continues to grow with expansion of Ultra Witbier • Witbier launched in Delhi in Q3 and in Maharashtra, Punjab & Chandigarh in Q4 with good consumer reactions. Amstel continues to grow significantly ahead of the market. • Present in 10 mark
Slide 11: Net Sales growth driven by volume impact
Net Sales growth driven by volume impact Revenue Q4 (in Rs. Cr) 127 (9%) -8 (-1%) 1,543 1,424 Net Rev PY Volume Variance Mix / Price var Net Rev CY YTD 6,505 -2499 (-38%) 236 (4%) 4,241 o Higher volume in most markets driven by good demand recovery versus Covid-induced lockdown in March last year. 9
Slide 12: Recovery of margins & profitability
Recovery of margins & profitability EBITDA Margin (Q4) 691 bps 17.7% 109 bps 35 bps 9.3% EBITDA Margin PY Gross Margin Employee expenses Other expenses EBITDA Margin CY YTD 13.6% 57 bps -369 bps -33 bps 10.1% o Gross profit improvement driven by pricing and benign input costs. o Margin improvement i
Slide 13: Q3 & Q4 sharp recovery post difficult Q1
Q3 & Q4 sharp recovery post difficult Q1 20/21 Q-o-Q Sequential Performance EBITDA (Rs. Cr.) 273 178 73 Q1 a Q1 Q2 Q3 Q4 (94) EBITDA Margin -19% 8% 14% 18% Vol. Vs FY 19-20 -77% -48% -15% 9% 11
Slide 14: Cash management resulted in strong FOCF
Cash management resulted in strong FOCF, driven by lower working capital and capex, despite lower profits YTD Mar ∆ Change in FOCF (in Cr) Cashflow in Rs. Cr. 2019-20 2020-21 (+/-) Rs. Cr. Operating CF before change in WC 916 403 (513) 107 440 Change in Working Capital (220) 298 517 251 Cash Flow fr
Slide 15: Consistent cash generation resulting in deleveraging and strong balance sheet
Consistent cash generation resulting in deleveraging and strong balance sheet. Net cash position for first time Net debt/ (net cash) (Rs Cr) 580 305 217 187 20/21 16/17 17/18 18/19 19/20 a 20/21 (155) Net Debt/EBITDA 0.8x 0.3x 0.2x 0.2x -0.4x 13
Slide 16: Outlook and summary
Outlook and summary o Due to second wave of Covid-19, the industry outlook is volatile. Impact will depend on magnitude and duration of lockdowns, including any partial or full trade restrictions. Challenges faced during first wave include finite beer shelf life & costs for liquidation/expired produ
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