Slide 1: Intimation of Financial Results, Earnings Call and Investor Presentation
October 19, 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: UBL
Slide 2: Investec India invites you to United Breweries Q2 FY24 Earnings call
Investec India invites you to United Breweries Ltd. Q2 FY24 Earnings call Post Earnings Business Update Diamond Pass Registration Friday, Oct 20, 2023 4:00pm https://tinyurl.com/5849xymv Management Team Mr. Radovan Sikorsky, Mr. Robin Achten, Director and CFO Business Control & Investor Relations Fo
Slide 3: Investor Presentation Quarter and Half Year ending September 2023
Investor Presentation Quarter and Half Year ending September 2023
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-lo
Slide 5: Q2 Highlights
Q2 Highlights Volume Premium Volume +7% +10% +9% excl. RTM +10% excl. RTM Net Sales Gross Margin +12% 44.5% (-213 bps vs PY) EBIT Profit after Tax -20% -20%
Slide 6: H1 Highlights
H1 Highlights Volume Premium Volume -4% -8% +1% excl. RTM +5% excl. RTM Net Sales Gross Margin +1% 42.4% (-287bps vs PY) EBIT Profit after Tax -18% -18%
Slide 7: Q2 volumes up 7% driven by strong underlying demand
Q2 volumes up 7% driven by strong underlying demand Volume Growth1 Q2 (+7%, +9% excl RTM) HY (-4%, +1% excl RTM) North (+1%) East (+11%) ▪ Volume decline in Delhi and ▪ Volume growth was predominantly Haryana more than offset by driven by Orissa & Jharkhand growth in Rajasthan & Uttar Pradesh West (
Slide 8: Q2 (Jul'23-Sep'23) Results
Q2 (Jul’23-Sep’23) Results Q2 Results (standalone) Data in Rs. Cr. Sep-23 Sep-22 Change (%) Net Sales 1,888 1,680 12% COGS (1,047) (896) 17% Gross Profit 841 784 7% Employee expenses (164) (139) 18% Other expenses (492) (426) 15% Other income 12 14 -15% EBITDA 197 233 -16% Depreciation (51) (52) -2%
Slide 9: YTD (Apr'23–Sep'23) Results
YTD (Apr’23–Sep’23) Results YTD Results (standalone) Data in Rs. Cr. Sep-23 Sep-22 Change (%) Net Sales 4,161 4,116 1% COGS (2,398) (2,254) 6% Gross Profit 1,763 1,862 -5% Employee expenses (311) (288) 8% Other expenses (1,044) (1,090) -4% Other income 23 25 -9% EBITDA 430 509 -16% Depreciation (102
Slide 10: Net Sales increase fueled by volume growth and strong pricing
Net Sales increase fueled by volume growth and strong pricing Net sales Q2 (Rs. In Cr) 1,888 1 Volume growth (+7%) driven by Telangana, Orissa and Rajasthan partially offset by a 1,680 decline in Delhi 7% 5% 0% 1 2 3 2 Price increases in key markets incl. Rajasthan, Uttar Pradesh & Karnataka 3 Stabl
Slide 11: Volume decline in the first 6 months more than off-set by pricing
Volume decline in the first 6 months more than off-set by pricing Net sales YTD (Rs. In Cr) 4,161 4,116 1 Volumes declined 4% mainly driven by Delhi, Haryana, Andhra Pradesh, Tamil Nadu & 1% Karnataka partially off-set by Telangana, -4% 5% Rajasthan, Uttar Pradesh & Orissa 1 2 3 2 Price increases in
Slide 12: c.8% EBIT Margin despite inflationary pressure on our cost base
c.8% EBIT Margin despite inflationary pressure on our cost base EBIT YTD (Rs. In Cr) 399 1 Gross Profit predominantly impacted by volume decline & COGS inflation with GP (83) 2 margin 287 bps down vs LY though Q2 FY24 328 further improving vs Q1 FY24 (+396 bps) (16) 52 driven by revenue management i
Slide 13: We continue to observe a reversal of the previous downward margin trends
We continue to observe a reversal of the previous downward margin trends 47% 44% 45% 42% 41% 39% 11% 9% 8% 8% 2% 1% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 GP Margin EBIT Margin 11
Slide 14: Multiple initiatives to brew a better India
Multiple initiatives to brew a better India UBL Sustainability Strategy Jal Sanchay Handover event, Karnataka Sustainability Impact Award 2023 Kissan Divas celebrating the Kissan Unnati program, Rajasthan CSR Projects across India 12
Slide 15: Outlook
Outlook ▪ Building further category growth while driving the share of premium in our portfolio remains a key focus ▪ Despite some inflationary softening seen in Q2, volatility will remain ▪ We continue to focus on revenue management & cost initiatives, to drive margin accretion ▪ We remain optimisti
Slide 16: Q&A
Q&A 14