United Breweries Ltd.

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See more articles on 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. 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. Its 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 2019	INR	USD
Revenue	64,754.30M	925.81M
Gross Profit	23,676.30M	338.50M
Operating income	9,092.30M	129.99M
Income before tax	8,793.10M	125.71M
Net income	5,629.40M	80.48M
EBITDA	11,690.90M	167.14M
Diluted EPS	21.29	0.30
Dividends Per Share	2.50	0.03
Total Assets	54,315.70M	784.05M
Total liabilities	22,447.60M	324.03M
Total equity	31,837.70M	459.58M
Operating cash flow	6,188M	88.47M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019
Revenue	46,881.10M	48,331.40M	47,291.90M	56,190.20M	64,754.30M
Gross Profit	20,088.70M	18,051.80M	16,351.30M	20,154.30M	23,676.30M
Operating income	4,223.20M	5,034.10M	3,742M	6,566.40M	9,092.30M
Income before tax	3,790M	4,546.50M	3,481.30M	6,078.20M	8,793.10M
Net income	2,598.40M	2,983M	2,295.70M	3,942M	5,629.40M
EBITDA	6,298.60M	7,470.40M	6,612.50M	9,162.90M	11,690.90M
Diluted EPS	9.73	11.28	8.68	14.93	21.29
Dividends Per Share	1	1.15	1.15	2	2.50
Total Assets	39,169.80M	44,007M	45,125.20M	47,745.10M	54,315.70M
Total liabilities	20,642M	22,510.50M	21,755.30M	20,813.10M	22,447.60M
Total equity	18,506.10M	21,471.20M	23,342.10M	26,902.60M	31,837.70M
Operating cash flow	7,777.60M	4,619.30M	4,882.80M	5,147.90M	6,188M

	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019
Revenue	766.73M	738.21M	705.24M	871.62M	925.81M
Gross Profit	328.55M	275.72M	243.84M	312.63M	338.50M
Operating income	69.07M	76.89M	55.80M	101.85M	129.99M
Income before tax	61.98M	69.44M	51.91M	94.28M	125.71M
Net income	42.49M	45.56M	34.23M	61.14M	80.48M
EBITDA	103.01M	114.10M	98.61M	142.13M	167.14M
Diluted EPS	0.15	0.17	0.12	0.23	0.30
Dividends Per Share	0.01	0.01	0.01	0.03	0.03
Total Assets	625.90M	664.53M	694.92M	732.04M	784.05M
Total liabilities	329.84M	339.92M	335.03M	319.11M	324.03M
Total equity	295.71M	324.22M	359.46M	412.47M	459.58M
Operating cash flow	127.20M	70.55M	72.81M	79.85M	88.47M

Valuation Measures

Mar 2019
PER	65.52
ROA	11.03%
ROE	19.16%
Operating margin	14.04%
Profit margin	8.69%

Key executives

Managing Director & Executive Director: Shekhar Ramamurthy
Senior Vice President-Operations & Malting: Rohtash Kumar Jindal
Senior Vice President-Operations: C. Gouri Shankar
Chief Financial Officer: Berend Odink
Secretary, Senior VP-Legal & Compliance Officer: Govind Iyengar

Shareholders

United Breweries Ltd. (34.0%)
Government of India (16.6%)
Heineken NV (12.4%)
MALLYA VIJAY (8.0%)
Arisaig Partners (Asia) Pte Ltd. (2.2%)
First State Investment Management (UK) Ltd. (2.2%)
ICICI Prudential Asset Management Co. Ltd. (1.9%)
McDowell Holdings Ltd. (1.7%)
Franklin Templeton Asset Management (India) Pvt Ltd. (1.2%)
Kamsco Industries Pvt Ltd. (1.2%)

Contact Details

Website:http://www.unitedbreweries.com
Address: UB Towers, UB City, No. 24 Vittal Mallya Road, Bangalore, 560001, India
Phone: +91.80.45655000

Related Companies

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 15 Nov, 2019