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Business Standard
02-06-2025
- Business
- Business Standard
United Breweries to shut Mangalore brewery, plans Nanjangud expansion
Beer maker United Breweries Ltd has announced plans to wind up operations at its Mangalore brewery unit in Karnataka with effect from June 30, 2025. 'We wish to inform that the company has decided to close its brewery unit situated at Plot No. 310, 311, 322E, Industrial Area, Baikampady, Mangalore – 575011, Karnataka ('Mangalore Brewery'/'Unit') effective June 30, 2025,' the company said in an exchange filing. The move is part of a consolidation effort in its brewery operations, and the company plans to expand its Mysuru brewery. 'We have initiated a strategic capacity consolidation and are pursuing expansion at our Nanjangud brewery in Mysuru, where we are making significant investments to scale our supply chain efficiencies,' the company said. The planned expansion is intended to effectively meet future demand through improved operations within Karnataka. 'The closure of the Mangalore brewery will not impact our business performance in the state,' the company said. Q4FY25 results UBL's consolidated net profit rose by 19.87 per cent to Rs 97.76 crore in the January–March quarter of FY25, compared to Rs 81.55 crore in the same quarter the previous year. According to a regulatory filing by UBL, which is under the control of Dutch brewing giant Heineken NV, its revenue from operations declined by 7.54 per cent to Rs 4,427.15 crore in the March quarter, down from Rs 4,788.68 crore in the same period last year. The company's total expenses for the March quarter stood at Rs 4,303.09 crore, an 8.54 per cent decrease. UBL's total income, including other income, declined by 7.9 per cent to Rs 4,435.16 crore in the March quarter. The company's net profit for the financial year ending March 31, 2025, rose by 7.67 per cent to Rs 442.41 crore, compared to Rs 410.86 crore in the previous year.
Business Standard
22-05-2025
- Business
- Business Standard
Quick Wrap: Nifty FMCG Index falls 1.44%
Nifty FMCG index ended down 1.44% at 55598.05 today. The index has slipped 3.00% over last one month. Among the constituents, Colgate-Palmolive (India) Ltd shed 6.48%, Varun Beverages Ltd slipped 2.00% and United Breweries Ltd dropped 1.78%. The Nifty FMCG index has fallen 0.00% over last one year compared to the 8.90% increase in benchmark Nifty 50 index. In other indices, Nifty IT index has dropped 1.31% and Nifty Media index added 1.11% on the day. In broad markets, the Nifty 50 is down 0.82% to close at 24609.7 while the SENSEX has dropped 0.79% to close at 80951.99 today.
India Today
19-05-2025
- Business
- India Today
Why it's fewer cheers for beer in Karnataka
A revision in duty rates on alcoholic beverages in Karnataka took effect on May 15, hiking the additional excise duty (AED) on beer by 5 per cent while also tweaking rates on the lower priced categories of Indian-made liquor (IML), which includes spirits such as whiskey, rum and was the third increase in AED on beer since 2023 besides a separate hike in excise duty this companies say these duty increases in quick succession have put them in a quandary. 'The industry is in a dilemma about what to do— allow the market to shrink by retaining their margins or allow the market to grow but do away with their profitability,' says Vinod Giri, director general of the industry body Brewers Association of India (BAI).With the May 15 notification, AED on beer in Karnataka is currently at 200 per cent (calculated on the cost declared by the manufacturer), up from 175 per cent two years ago. Essentially, it will make retail prices of beer the highest in the southern region, adds July 2023, the AED on beer was increased from 175 per cent to 185 per cent. The following year, in February, it was revised to 195 per cent. Now, on May 15, the new AED rate of 200 per cent on beer became in January, the ED had been doubled from Rs 10 per bulk litre to Rs 20 on strong beer. Hence, with this notification, Karnataka now taxes beer in two slabs based on alcohol content—beers with 5 per cent alcohol and those with alcohol content of 5-8 per to Giri, the January-March quarter saw an 18 per cent dip in sales in Karnataka because of the excise duty hike. 'The industry has started shrinking in Karnataka after this January's increase in excise duty,' says Giri, whose organisation's founding members include companies such as United Breweries Ltd, AB InBev and Carlsberg, which together account for 85 per cent of beer sold in beer industry in Karnataka grew 46 per cent in 2022-23 and 14 per cent in 2023-24. However, in 2024-25, sales grew by 1 per cent, he beer sales in India were up 9.7 per cent in 2024-25, reaching a volume of 445 million cases. Karnataka is the second largest market for beer in the country, after Telangana, with about 55 million cases sold annually. It has 11 breweries, the most in India.A senior government official acknowledges that beer sales have taken a hit, but attributes it partly to a lag caused by a compliance change in which breweries in the state were mandated to declare ingredients, including the sugar content, on the pricing, the official points out that Karnataka leaves the declared price of an alcoholic beverage free for the manufacturer to decide, without a cap like in some other states. Owing to this, the declared prices of some beer brands tended to be higher in Karnataka than elsewhere, he says. The declared price is the basic price to which ED, AED, wholesale and retail margins are added to arrive at the maximum retail its large outlay on welfare schemes, Karnataka has been tapping several avenues to mop up revenue over the past two years. As part of this, it set out to restructure AED rates on alcoholic beverages. Out of Karnataka's 2024-25 budget projection of Rs 38,525 crore revenue from the excise department, the AED on hard liquor, or IML, was estimated at Rs 28,254 crore (73.34 per cent) while AED on beer was expected to net Rs 5,290 crore (13.73 per cent).As the government official explained it, prices of premium and super-premium IML brands were much higher in Karnataka compared to neighbouring states while it was the opposite in the case of bottom-rung brands. Hence, last year, the government lowered AED rates at the top-end in a bid to boost it has increased duty on the cheapest hard liquor brands to bring them on par. With the May 15 revision, the lowest three slabs will see an increase of Rs 15 per bottle while the fourth slab will go up by Rs 5. There are a total of 16 slabs for IML. 'There is good growth in the premium, especially super-premium IML segment,' says the official, adding that it will take at least a year to know if the policy has yielded the intended effect of netting higher to India Today Magazine
Time of India
08-05-2025
- Business
- Time of India
United Breweries plans significant capex increase to boost production capacity
United Breweries Ltd (UBL) is going to push more capex investment this fiscal to increase its production capacity and availability of coolers in retail outlets across the country, managing director and chief executive officer Vivek Gupta said. #Operation Sindoor Live Updates| From Sindoor to showdown? Track Indo-Pak conflict as it unfolds India hits Lahore's Air Defence Radars in proportionate response Pakistan tried to hit military targets in these 15 Indian cities, New Delhi thwarts strikes Talking to analysts in their fourth quarter earnings call on Thursday, Gupta said the country's largest beer brewer has plans to increase its cooler installation from the current 10-15% in Maharashtra to 50% in the next couple of years. He, however, declined to share the capex figure for 2025-26. UBL had a capex of Rs 254 crore in 2024-25, up by Rs 64 crore from last year which was used in commercial and supply chain initiatives to drive future growth. UBL, however, is under pressure in the South. In Telangana, beer prices were increased by 15% in February following the state and United Breweries spat over undue payments by the former to the latter. Karnataka, last week increased tax on the manufacturing cost of beer to 205%, from the earlier 195%, thereby impacting the MRP of both mass and premium brands. 'A lot of work has gone into this quarter. Our inventory was higher, despite the disruption, we are in the middle of the season, we feel confident. The worry part is the increase in duty. We saw the impact of that in Telangana and Karnataka. Duty is posing to be the biggest threat,' said Gupta. Live Events The South volume growth of 5% last quarter for UBL was driven by Andhra Pradesh, which was impacted by the decline in Telangana and Karnataka. The company's standalone revenue for the fourth quarter ending March declined by 8% year-on-year (yoy) at Rs 4,425.5 crore as on March 31st, 2025. The net profit grew by 20.5% yoy at Rs 97 crore. For 2024-25, UBL sales grew by 5.6% yoy to reach Rs19,400.8 crore and net profit by 7.8% yoy at Rs 441 crore. Last quarter, the Kingfisher beer maker posted 5% overall volume growth and 24% volume growth for its premium portfolio. 'We see strong growth from Kingfisher Ultra, Kingfisher Ultra Max and Heineken Silver and we continue to drive premium volume growth. After receiving an overwhelming response in Maharashtra and West Bengal, we also introduced Amstel Grande in Uttar Pradesh, a vibrant market with a growing demand for premium beverages," the company said in its earnings report. On Thursday, United Breweries' shares closed at Rs 2,159 on the BSE, down 1.05%.
Business Standard
07-05-2025
- Business
- Business Standard
United Breweries profit up 19.8% at Rs 97.7 cr, revenue down at Rs 4,427 cr
Its total expenses were at Rs 4,303.09 crore, down 8.54 per cent in the March quarter of FY25 Press Trust of India New Delhi Beer maker United Breweries Ltd on Wednesday reported a 19.87 per cent rise in its consolidated net profit to Rs 97.76 crore in the January-March quarter of 2024-25 compared to Rs 81.55 crore in the January-March quarter a year ago. UBL's revenue from operations dropped by 7.54 per cent to Rs 4,427.15 crore in the March quarter compared to Rs 4,788.68 crore in the corresponding period a year ago, according to a regulatory filing by the company controlled by Dutch multinational brewing company Heineken NV. Its total expenses were at Rs 4,303.09 crore, down 8.54 per cent in the March quarter of FY25. Its total income, which includes other income, in the March quarter, was down 7.9 per cent to Rs 4,435.16 crore. UBL's net profit for the financial year ended on March 31, 2025, was up 7.67 per cent to Rs 442.41 crore. It was at Rs 410.86 crore a year before. In FY'25, UBL's total consolidated income was at Rs 19,444.44 crore, up 5.37 per cent. Shares of United Breweries Ltd on Wednesday settled at Rs 2,184.45 on BSE, up 2.12 per cent from the previous close. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
