United Breweries (UBL) is poised to unveil its financial performance today, on October 19, 2023. Based on Zee Business analysis, UBL is expected to announce a 4.1% year-on-year (YoY) increase in standalone revenue, reaching Rs 1,749 crore for the quarter ending September 30, 2023, in contrast to the Rs 1,680 crore reported in Q2 FY2023.
According to Zee Business analysts, United Breweries Ltd, primarily owned by the Dutch multinational brewing firm Heineken NV, is likely to witness a decline in margins, dropping from 13.03% to 9.8% due to reduced barley prices. The company is projected to disclose a 27.6% YoY decrease in standalone Profit After Tax (PAT), with figures reaching Rs 97 crore compared to the previous year’s Rs 134 crore.
These analysts also anticipate a 21% decrease in UBL’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), plummeting from Rs 219 in the previous year to Rs 173 crore. Additionally, the firm is predicted to experience higher employee benefit expenses and other costs. Furthermore, the research team highlights that the decline in barley prices is likely to impact the company’s gross margins.
United Breweries’ Share Performance
Over the past 12 months, United Breweries’ stock has decreased by nearly 6% starting from October 19, 2022. In contrast, the Nifty 50, the headline index, has seen a substantial 12% increase during the same period.