Volumes grew by a healthy 16% YoY with market share gains (management cited achievement of market-leading volume growth). EBITDA quarter (3QFY18) was 17.1% and 19.3%, respectively. YoY to 7.6% of sales, while other expenses were down 300bp YoY to 28.6%. 15.0%) the highest third-quarter margin in the companys history. higher than our estimate of +91.6% YoY. Interest costs reduced sharply by ~50% owing to debt reduction. If not for the tax rate at 38.4% for the quarter, the PAT beat would have been even higher.
Carlsbergs main brands in India Tuborg and Carlsberg, reported a volume growth of 17% and 31% YoY, respectively, in CY18. The improvement in price/mix was driven by robust growth of the brand and improved pricing (we believe pricing refers to the 10% price increase grant in May18 in Telangana). Profitability has improved considerably due to volume growth, positive price/mix and supply chain efficiencies, following the opening of Carlsbergs Karnataka brewery. The India business reported an organic operating profit growth of 131% YoY in 2018. Carlsberg launched the SAIL22 strategy in Mar16, aiming to make the Carlsberg Group a successful, professional and attractive brewer in the Chinese and Indian markets, which have good potential for top line growth. United Breweries grew by 12% YTD and by 37% in 9MCY18, then 4QCY18 was phenomenal for the companys largest brand in India (Tuborg) to end up with 19% volume growth for the full year.
30 May 2018 Estimate change TP change Rating change (est. of INR13.7b) in 4QFY18, off a weak base. Volumes grew strongly by 24% YoY (industry vols grew 22%), with continued market share gains. Notably, growth was achieved in 4Q, despite no supply in Bengal due to the lack of clarity on the new excise structure. (benefiting from a favorable state mix and price hikes taken in the year). Strong sales growth meant that employee costs as a percentage of sales were down 50bp YoY to 7.5% and other expenses were down 300bp to 31.2%. Consequently, the EBITDA margin expanded 510bp YoY to 14.2% (est. EBITDA more than doubled YoY to INR2.1b (est.
Clarification sought from United Breweries (Holdings) Ltd
The Exchange has sought clarification from United Breweries (Holdings) Ltd with respect to news article appearing on CNBC TV18 on October 03, 2017 titled "Vijay Mallya Arrested in London."The reply is awaited.