United Breweries Limited · NSE:UBL
United Breweries — FY2020 Earnings Presentation
17 slides from United Breweries's earnings presentation, Jun 25, 2020
Slide 1: Intimation of Analyst/Investor Call
June 25, 2020 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 Scr
Slide 2: IDFC Securities Q4FY20 Earnings Call Invitation
IDFC Securities invites you to the Q4FY20 Earnings call of United Breweries Ltd Thursday, 25th June 2020 at 16:00 hrs IST United Breweries’ management will be represented by: Mr. Berend Odink- CFO Mr. Poonacha - IR Dial-in numbers Universal Access: +91 22 6280 1384 +91 22 7115 8285 The numbers liste
Slide 3: Investor Presentation Year ended March 2020
Investor Presentation Year ended March 2020 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: Key Results Highlights
Key Results Highlights Q4 FY Volume growth -21% -4% Volume growth, excl Covid-19 -6% 0% Gross profit growth -12% -3% EBITDA growth -27% -24% EBITDA margin -183 bps -449 bps Profit after tax growth -39% -24% 3
Slide 6: FY Results
FY Results FY Results (standalone) Data in Rs. Cr. Mar-20 Mar-19 Change (%) Net Sales 6,505 6,472 0% COGS (3,160) (3,017) 5% Gross Profit 3,344 3,455 -3% Employee expenses (500) (444) 13% Other expenses (1,970) (1,873) 5% Other income 9 32 -71% EBITDA 884 1,169 -24% Depreciation (285) (260) 10% EBIT
Slide 7: Key Results Highlights
Key Results Highlights • 19/20 witnessed challenging circumstances with an overall economic slowdown, impact of elections in Q1, adverse policy changes per October in Andhra Pradesh and Covid-19 impacting Q4. • FY 19/20 volumes down -4% and net revenues remained flat, due to positive price/mix per c
Slide 8: Regional volume performance
Regional volume performance Volume Growth Total Company FY -4%, Q4 -21% East 18%, -2% North -3%,-18% • Market recovery versus prior year in • Growth in Delhi, Punjab and Uttar West Bengal. Pradesh offset by declines in Haryana and Rajasthan. • Orissa flattish year over year. Growth in Jharkhand West
Slide 9: Continued expansion of brand portfolio
Continued expansion of brand portfolio Ultra family continues to grow with addition of Ultra Witbier & Ultra draught. • Witbier launched in Karnataka & Goa in Q3 FY’20 with good consumer reactions. • Ultra draught beer launched in Q3. KF Storm & Amstel growing significantly ahead of the market. • Pr
Slide 10: Net Sales driven by positive price/mix
Net Sales driven by positive price/mix Revenue FY in Rs. Cr. (% change) 6,472 -258 (-4%) 290 (4%) 6,505 Net Sales 18/19 Volume Price / Mix Net Sales 19/20 Q4: 1,629 -342 (-21%) 137 (8%) 1,424 • Positive price mix due to premium brand growth, positive state mix and price. Price increases realized in
Slide 11: Input costs impacted EBITDA margin, Q4 up
Input costs impacted EBITDA margin, Q4 up EBITDA Margin FY -197 bps -83 bps 18% -134 bps 14% EBITDA Margin PY Gross Margin Employee Other expenses EBITDA Margin CY expenses Q4: 11% +38bps -140bps -21bps 9% • FY impacted by input cost increases in malt & glass • In Q4 Covid-19 negatively impacted mar
Slide 12: Robust FOCF & strong balance sheet
Robust FOCF & strong balance sheet FY ∆ Cashflow in Rs. Cr. 2018-19 2019-20 (+/-) Operating CF before change in WC 1,142 915 (228) Change in Working Capital (109) (218) (109) Cash Flow from Operations 1,033 697 (337) Operational Investments (430) (402) 28 Managerial Cash Flow 604 295 (309) Interest
Slide 13: Covid-19 Update
Covid-19 Update • Company has put in place all recommended health & safety measures to protect staff & stakeholders, incl. sanitization and hygiene, thermal scanning, maintaining physical / social distancing and deep cleansing of premises • At the outset, formation of management crisis team focusing
Slide 14: Covid-19 Update
Covid-19 Update • CSR activities: supporting those in need, some 35,000 families will be supported with dry rations & hygiene kits across seven states. Furthermore, launched disaster relief support for 1,000 households in West Bengal impacted by the cyclone. • There is sufficient financing headroom
Slide 15: Outlook and summary
Outlook and summary • Industry outlook is uncertain with negative macro economic growth outlook and continued direct & indirect impact from Covid-19 measures. • United Breweries is well positioned to navigate these circumstances with a leading market position, strong brand portfolio and robust balan
Slide 16: Annex: Q4 Results
Annex: Q4 Results Q4 Results (standalone) Data in Rs. Cr. Mar-20 Mar-19 Change (%) Net Sales 1,424 1,629 -13% COGS (699) (806) -13% Gross Profit 725 823 -12% Employee expenses (128) (124) 4% Other expenses (465) (528) -12% Other income 1 11 -94% EBITDA 133 182 -27% Depreciation (73) (64) 15% EBIT 59
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