United Breweries posts Q1 net loss of Rs 114.50 cr as COVID-19 hits sales

Beer maker United Breweries Ltd on Friday reported a consolidated net loss of Rs 114.50 crore for the first quarter ended June 30, on account of decline in sales due to the pandemic.

The company had posted a net profit of Rs 164.69 crore during the April-June quarter of the previous fiscal, United Breweries Ltd (UBL) said in a regulatory filing.

Its revenue from operations slipped 73.17 per cent to Rs 1,262.82 crore during the quarter under review, as against Rs 4,708.42 crore in the corresponding period previous fiscal.

UBL’s total expenses declined 68.21 per cent to Rs 1,416.43 crore in Q1 FY21, compared to Rs 4,456.25 crore a year ago.

According to the company, “its peak season was adversely affected by the pandemic” as the COVID-19 lockdown led to complete closure of all outlets.

“The primary volumes for the quarter in comparison to the corresponding quarter of the previous year were down 77 per cent,” said UBL.

Its revenue from beer segment fell 73.30 per cent to Rs 1,255.67 crore in the first quarter, as against Rs 4,702.92 crore in the year-ago period.

However, its revenue from non-alcoholic beverages rose 30 per cent to Rs 7.15 crore in the quarter, compared to Rs 5.50 crore a year ago.

“There has been a gradual and phased re-opening of business, yet parts of the trade remained closed for the full quarter including on premise outlets. Demand and business operations will continue to be impacted directly & indirectly by the pandemic and related State and/or local restrictions from time to time,” it said.

Over the outlook, UBL said that it is well-positioned to navigate the current circumstances with a leading market position, strong brand portfolio and robust balance sheet.

“The company continues to be optimistic about the long-term growth drivers of the industry and is committed to strengthen its market position while leveraging newly emerging opportunities such as home delivery,” it said.

Shares of United Breweries Ltd on Friday settled at Rs 964.60 apiece on the BSE, down 2.39 per cent from previous close.

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