17 August 2020 United Breweries (UBBL)s results were worse than our expectations. Its in various urban centers thus far in 2QFY21, (c) no repeal of excise duty increase in the majority of the states (which saw a steep excise increase in May), and (d) the continued likelihood of closure of on-trade sales for a few more months. As highlighted in our Alcobev downgrade in May20, we expect FY20 FY22 to be lost years for alcobev players, which are severely affected by a weak demand environment in FY21. Moreover, recovery in FY22 is also threatening both net sales growth and profitability for the next few quarters and (b) the risk of weak state finances leading to delay in payments, thereby increasing receivables. EBITDA loss stood at INR957m (v/s est. INR750m loss and EBITDA profit of INR3.3b in 1QFY20). PBT loss stood at INR1.5b (in-line) v/s PBT profit of INR2.6b in 1QFY20.