United Breweries (532478) Q1 24/25 earnings summary

Executive summary

• Net sales for Q1 FY25 rose 9% year-over-year to ₹2,473 Cr, driven by 5% volume growth and a 44% surge in premium segment volumes, supported by pricing actions.

• EBIT increased 29% year-over-year to ₹234 Cr, with EBIT margin reaching 9.5%, the highest since Q2 FY22/23.

• Premium brands, especially Ultra and Ultra Max, grew over 50% in the season; Heineken Silver posted double-digit national growth.

• Election-related restrictions and capacity constraints in key states temporarily impacted volume and market share.

• Optimism remains for long-term industry growth, citing favorable demographics and premiumization trends.

Financial highlights

• EBITDA increased 25% year-over-year to ₹292 Cr, with EBITDA margin up 155 bps to 11.8%.

• Gross profit margin improved by 247 basis points to 43% year-over-year.

• Standalone revenue from operations for Q1 FY25 was ₹5,80,910 lakhs, up from ₹5,24,140 lakhs in Q1 FY24.

• Standalone net profit for Q1 FY25 was ₹5,946 lakhs, compared to ₹4,404 lakhs in Q1 FY24.

• Employee expenses increased due to capability investments in trade marketing, procurement, and consumer insights.

Outlook and guidance

• Focus on driving category growth and increasing premium share in the portfolio.

• Continued investments in brand building, supply chain, and revenue management to support long-term growth.

• Optimism for long-term growth supported by rising disposable income, favorable demographics, and premiumization trends.

• Plans to expand Heineken presence to at least four more states in the next 9-12 months.