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Consumer Non-Durables

United Breweries Ltd.

Company Background

The company is the beer-industry leader in India, controlling about 50% of the market. Dutch brewer Heineken holds a roughly 40% share in the company, while UB Group Chairman Vijay Mallya holds a stake of about 36%. Heineken owns much of its stake in the company through its Indian subsidiary, Scottish & Newcastle India.

Mallya's stake was once the same as Heineken's, but the Dutch company increased its interest 2013. Mallya, who also owns the grounded Kingfisher Airlines, was elected chairman of UB Group in 1983 at age 28. Prior to joining his family business, he worked for the American Hoechst Corporation (now Sanofi-Aventis) in the U.S. and Jenson & Nicholson in the U.K.

United Breweries was set up in 1915 after Scotsman Thomas Leishman bought and merged five breweries in south India. In 1947, the company was purchased by Mallya's father, Vittal Mallya. In 2004, United Breweries entered a joint venture with Scottish & Newcastle India, which is now owned by Heineken, to produce and sell beverages. The company behind India's best-selling beer, Kingfisher Strong, started manufacturing and distributing Heineken beer in India in 2009.

Business Summary

United Breweries Ltd. is a holding company, which engages in the manufacture and trade of beer and Non-alcoholic beverages. It operates through the Beer and Non-Alcoholic Beverages segments. The Beer segment includes the production and sale of beer, as well as the licensing of brands. The Non-Alcoholic Beverages segment involves in the purchase and sale of non-alcoholic drinks. The firms brands include Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Storm, and Kingfisher Buzz. The company was founded on March 15, 1915 and is headquartered in Bangalore, India.

Financial Highlights

Mar 2020 INRUSD
Revenue65,092.40M918.00M
Gross Profit21,843.90M308.06M
Operating income6,090.60M85.89M
Income before tax5,689.20M80.23M
Net income4,277.30M60.32M
EBITDA8,941.60M126.10M
Diluted EPS16.170.22
Dividends Per Share2.500.03
Total Assets55,774.50M737.25M
Total liabilities20,538.50M271.48M
Total equity35,202.60M465.32M
Operating cash flow4,833.60M68.16M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 48,331.40M 47,291.90M 56,190.20M 64,754.30M 65,092.40M
Gross Profit 18,051.80M 16,351.30M 20,154.30M 23,676.30M 21,843.90M
Operating income 5,034.10M 3,742M 6,566.40M 9,092.30M 6,090.60M
Income before tax 4,546.50M 3,481.30M 6,078.20M 8,793.10M 5,689.20M
Net income 2,983M 2,295.70M 3,942M 5,629.40M 4,277.30M
EBITDA 7,470.40M 6,612.50M 9,162.90M 11,690.90M 8,941.60M
Diluted EPS 11.28 8.68 14.93 21.29 16.17
Dividends Per Share 1.15 1.15 2 2.50 2.50
Total Assets 44,007M 45,125.20M 47,745.10M 54,315.70M 55,774.50M
Total liabilities 22,510.50M 21,755.30M 20,813.10M 22,447.60M 20,538.50M
Total equity 21,471.20M 23,342.10M 26,902.60M 31,837.70M 35,202.60M
Operating cash flow 4,619.30M 4,882.80M 5,147.90M 6,188M 4,833.60M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 738.21M 705.24M 871.62M 925.81M 918.00M
Gross Profit 275.72M 243.84M 312.63M 338.50M 308.06M
Operating income 76.89M 55.80M 101.85M 129.99M 85.89M
Income before tax 69.44M 51.91M 94.28M 125.71M 80.23M
Net income 45.56M 34.23M 61.14M 80.48M 60.32M
EBITDA 114.10M 98.61M 142.13M 167.14M 126.10M
Diluted EPS 0.17 0.12 0.23 0.30 0.22
Dividends Per Share 0.01 0.01 0.03 0.03 0.03
Total Assets 664.53M 694.92M 732.04M 784.05M 737.25M
Total liabilities 339.92M 335.03M 319.11M 324.03M 271.48M
Total equity 324.22M 359.46M 412.47M 459.58M 465.32M
Operating cash flow 70.55M 72.81M 79.85M 88.47M 68.16M

Valuation Measures

Mar 2020
PER56.72
ROA7.77%
ROE12.76%
Operating margin9.35%
Profit margin6.57%

Key executives

  • Chief Executive Officer & Managing Director: Rishi Pardal
  • Senior Vice President-Operations & Malting: Rohtash Kumar Jindal
  • Senior Vice President-Operations: C. Gouri Shankar
  • Chief Financial Officer: Berend Cornelis Roelof Odink
  • Head-Information Technology: Kapil Pal

Shareholders

  • United Breweries Ltd. (34.0%)
  • Government of India (16.7%)
  • Heineken NV (12.4%)
  • MALLYA VIJAY (8.0%)
  • ICICI Prudential Asset Management Co. Ltd. (3.2%)
  • Arisaig Partners (Asia) Pte Ltd. (1.7%)
  • McDowell Holdings Ltd. (1.7%)
  • Kotak Mahindra Asset Management Co. Ltd. (1.6%)
  • Kamsco Industries Pvt Ltd. (1.2%)
  • Derive Trading Pvt Ltd. (1.2%)

Contact Details

Related Companies

  • United Breweries Ltd. Provident Fund
  • Pacific Spirits Pvt Ltd. /Brewery Assets/
  • Scottish & Newcastle India Pvt Ltd.
  • Maltex Malsters Ltd.
  • Chennai Breweries Pvt Ltd.
  • UB Ajanta Breweries Pvt Ltd
  • London Draft Pubs Pvt Ltd.
  • UB Group Employees Welfare Trust

Competitors

  • Budweiser Brewing Co. APAC Ltd.
Last Updated on 25 Nov, 2020

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