Q3 2025 United Breweries Ltd Earnings Call Transcript
Key Points
- United Breweries Ltd (BOM:532478) reported an 8% overall volume growth in Q3, driven by broad-based growth across EMEA and positive policy changes in states like Andhra Pradesh.
- The company gained market share overall and in the premium segment, with trading volumes growing 33%, particularly in the Kingfisher Ultra and Kingfisher Ultra Max portfolios.
- United Breweries Ltd (BOM:532478) launched Amstel Grande and Kingfisher flavors, receiving promising consumer responses, indicating potential for future growth.
- The company announced a major investment in a greenfield brewery in Uttar Pradesh, aiming to meet future capacity requirements and capitalize on category growth.
- A productivity program was implemented in Q3, expected to deliver annual growth savings of around INR50 crore by 2025, enhancing efficiency and competitiveness.
- EBIT for the quarter was INR90 crore, significantly lower than the previous year, due to continued investments in the organization and supply chain.
- The company incurred a one-time exceptional cost of INR26 crore in Q3 related to the productivity program.
- Despite a 15% price increase in Telangana, operations remain EBIT negative, highlighting ongoing profitability challenges in the state.
- Karnataka faced a 30-35% category decline due to excise duty changes and label approval delays, impacting sales.
- The company experienced disruptions in January due to policy changes and supply halts in states like Telangana and Odisha, affecting overall performance.
Ladies and gentlemen, good day and welcome to the quarter three FY25 conference call of United Breweries. (Operator Instructions) Please note that this conference call is being recorded.
I now have the conference over to Mr. Vivek Gupta and Mr. Jorn Kersten from United Breweries. Thank you, and over to you.
Thank you. Thank you very much, and hello, everyone. Thank you for joining this call. We're very happy to discuss the developments of quarter three of the financial year '24, '25. I will give some of the highlights on the quarter before I hand it over to Vivek for some comments and then, of course, we will open up for Q&A as well.
So looking at Q3, we see continued strong fundamentals, while we're also investing for the future. In our volume growth, we accelerated in Q3, and we're very happy with the 8% overall volume growth, driven by broad-based growth across the entire footprint in EMEA and positively impacted by recent policy changes in states like Andhra
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