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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. 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 INRUSD
Revenue64,754.30M925.81M
Gross Profit23,676.30M338.50M
Operating income9,092.30M129.99M
Income before tax8,793.10M125.71M
Net income5,629.40M80.48M
EBITDA11,690.90M167.14M
Diluted EPS21.290.30
Dividends Per Share2.500.03
Total Assets54,315.70M784.05M
Total liabilities22,447.60M324.03M
Total equity31,837.70M459.58M
Operating cash flow6,188M88.47M
Currency in INRCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 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 2015Mar 2016Mar 2017Mar 2018Mar 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
PER65.52
ROA11.03%
ROE19.16%
Operating margin14.04%
Profit margin8.69%

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

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

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