Q3 2026 United Breweries Ltd Earnings Call Transcript
Key Points
- United Breweries Ltd (BOM:532478) achieved a net sales growth of 4% for the quarter, driven by price increases in key states and favorable state mix.
- The company reported a significant margin improvement, achieving a gross margin of 45.3%, marking a 220 basis points increase over the previous year.
- EBIT growth was strong at 86% in Q3, indicating a robust recovery from the previous quarter.
- The launch of Kingfisher Smooth in January 2026 is expected to support category growth and expand presence in the strong beer segment.
- United Breweries Ltd (BOM:532478) has seen positive developments in Maharashtra and Madhya Pradesh, supporting beer affordability and favorable policy changes.
- The company faces challenges related to affordability and weather, impacting overall industry growth.
- Competitive intensity remains high, with local and global competitors increasing their market presence.
- The beer category has seen declines in key states like Karnataka, Rajasthan, and Telangana due to affordability issues.
- Inflationary pressures, particularly on aluminum and barley prices, pose a risk to cost management.
- Receivables in Telangana remain a challenge, with ongoing issues in managing overdue payments.
Ladies and gentlemen, good day, and welcome to the United Breweries Limited Q3 and FY 2026 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Jorn. Thank you, and over to you, sir.
Yes. Thank you very much. Good afternoon, everyone. Thank you for joining the call for our update on the previous quarter ending December 31, 2025. Vivek and I are happy to give you an overview of the performance as well as answer some of the questions that you may have.
As a few introductory remarks, this quarter, United Breweries, we delivered resilience and agility with improved margins, and we continued our premium growth. While in the industry, we still need to navigate some headwinds related to both weather as well as challenges in affordability. And I think we'll speak some more about that later as well.
For the quarter, we did see net sales growing by 4%, largely driven by price increases in key states like, for instance, earlier in the
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