Q2 2026 United Breweries Ltd Earnings Call Transcript
Key Points
- United Breweries Ltd (BOM:532478) outperformed the broader beer market despite weather-driven challenges, maintaining resilience and staying on track with their commercial plan.
- The premium segment showed strong performance with a 17% volume increase and meaningful market share gains, driven by brands like Kingfisher Ultra and Heineken Silver.
- The company continues to invest in brand building, with brand investments rising by over 20% year-on-year.
- United Breweries Ltd (BOM:532478) is accelerating productivity and efficiency measures, including network optimizations and streamlining trade spends, to ensure sustainable profit growth.
- The company remains confident in the long-term growth prospects of the beer category in India and is committed to investing in its brands, people, and capabilities to capture future market opportunities.
- Net sales declined by 3% in the quarter, with a temporary de-leverage from lower volumes impacting profitability.
- Gross margin for the quarter was slightly below last year due to mixed effects, and operating profit was weighed down by increased spending and softer volumes.
- The company faced significant challenges in certain states, such as Karnataka and West Bengal, due to weather impacts and taxation issues, leading to double-digit declines in those regions.
- Affordability remains a concern, with ongoing discussions with state governments to address beer taxation and its impact on category growth.
- The combination of increased costs and limited ability to adjust pricing poses challenges to maintaining profitability in the short term.
Ladies and gentlemen, good day and welcome to the United Breweries Limited Q2 FY26 earnings conference call.
As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference, please signal an operator by pressing and then 0 on your touchstone phone.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Jon Kirsten, CFO.
Thank you and over to you, sir.
Thank you very much. Good afternoon, everyone. And thank you for joining this update for the second quarter and the 1st half of full year 2026. Welcome to the call.
As you are used to, we'll give a quick introduction. I'll hand over to VTech for some a bit more backgrounds and then we open up for Q&A.
But to start with an opening comment, I think as everybody is very much aware, this past
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