United Breweries Ltd. share price target

UBBL's sales increased 17.1% YoY to INR12b (est. of INR11.9b) in 3QFY18.Volumes grew 12% YoY v/s 6% growth for the industry. Growth was achieved despite the lack of supply for a large part of 3QFY18 in the state of Maharashtra due to pricing issue (was resolved subsequently) and the route-to-market change in West Bengal. Gross margin shrunk 140bp YoY to 52.4% ( due to impact of higher commodity costs and GST). Staff costs fell by 30bp YoY and other expenses by 140bp YoY,possibly due to operating leverage led by healthy sales growth. EBITDA was up by a healthy 19.3% YoY to INR1.5b, but missed our estimate of INR1.8b due to lower-than-expected margins growth. Due to a higher-than-expected tax rate,PAT fell 2.3% YoY to INR474m (est. of INR674m), despite healthy EBITDA growth.

Net revenues for Q2FY18 grew by 23% YoY to | 1276.4 crore (I-direct estimate: | 1102.8 crore), primarily driven by price increases, positive state and brand mix as well as beer exports. Industry volumes for the quarter grew by 5%, however for UBL volumes grew by 11%; indicating a market share gain. The volumes were above our estimates at ~36.8 million cases as compared to ~33.1 million cases in Q2FY17. The company experienced volume growth in North (driven by Delhi, UP and Rajasthan), South (driven by AP, Telengana, Tamil Nadu and...

Net sales grew 23.1% YoY (est. of +7%) to INR12.8b in 2QFY18. Despite the highway ban, volume rose 11% YoY (est. of flat volume) v/s 5% growth for the industry another quarter of market share gains for UBBL. The company has now gained share in both FY17 and 1HFY18. Most markets in the country saw positive momentum, barring Maharashtra, West Bengal and Kerala. Gross margin shrunk 10bp YoY to 54.1% in 2QFY18. EBITDA margin expanded 570bp YoY to 17.4% in 2QFY18. Staff costs reduced by 60bp YoY and other expenses declined by 520bp YoY, likely led by strong operating leverage. 2Q is...

ICICI Securities Ltd | Retail Equity Research Net revenues for Q1FY18 grew 7% YoY to | 1674.2 crore (I-direct estimate: | 1460.8 crore), primarily driven by a price hike in key open market. Though industry volumes for the quarter de-grew 1%; volumes for UBL during the quarter grew 1%; indicating a market share gain of around 1.5%. Volumes were broadly in line with Q1FY17 volumes (~48.7 million cases) as the ban in major beer drinking southern cities (Telangana & AP) was effective from July 1, 2017. The...

United Breweries Ltd Q1FY18 results comment Revenue rose by 50.46% to Rs. 1674.21 Cr in Q1FY18 when compared to the previous quarter.

Revenue grew by 8.85% to Rs. 1112.7 Cr in Q4FY17 when compared to the previous quarter.

ICICI Securities Ltd | Retail Equity Research Net revenues for Q4FY17 de-grew 8% YoY (up 9% QoQ) to | 1112.7 crore (I-direct estimate: | 975 crore). Lag effect of demonetisation coupled with de-stocking activity on account of highway ban adversely impacted industry volumes for the quarter, de-growing 13%. However, volumes de-grew 10%; indicating the strength of the franchisee to weather downfall in the sector. During the quarter, UBL resumed its...

Revenue decreased by 1.12% to Rs. 979.23 Cr in Q3FY17 when compared to the previous quarter. Also, it decreased by 5.4% when compared with Q3FY16.

Hit by demonetisation; highway ban a roadblock United Breweries' Q3FY17 revenues were below our expectations. Gross revenues grew 2% YoY (down 1.5% QoQ) to | 2185 crore. However, higher excise duty (55% vs. 52% in Q3FY16) and lower other operating income (down 26% YoY) resulted in net revenues degrowth of 6.6% YoY to | 1025 crore (I-direct estimate: | 1070 crore) Volumes for UBL and industry were both severely impacted by demonetisation, with de-growth of 8%. Overall market share for UBL continues to remain above 50%. UBL gained market share in the North with Delhi and Uttarakhand markets growing faster than industry. With...

United Breweries' net revenues for Q2FY17 de-grew 3% YoY (down 34% QoQ) to | 1039 crore (I-direct estimate: | 1244 crore) Though industry volumes for the quarter de-grew 5%; volumes for UBL during the quarter remained flattish; indicating a market share gain (currently at 51% vs. earlier 50%). Complete ban in Bihar and strengthening competition in Karnataka and Haryana impacted the volumes. Growth in the south was mainly driven by AP and Telangana. However, Delhi and Haryana contributed volumes in north...