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Consumer Non-Durables

United Breweries Ltd.

  • 1,400.00 INR
  • +27.70
  • +2.02%
  • India
    Jul 19, 2019
  • Ticker
    BOM(532478)
  • Prev. close
    1,372.30
  • Market cap (INR)
    362,843.18M
  • Market cap (USD)
    5,273.35M
  • Shares
    264.40M

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. Its activities also include management and operation of breweries and brand licensing. It operates through the India and Outside India geographical segments. The company was founded on March 15, 1915 and is headquartered in Bangalore, India.

Financial Highlights

Mar 2019 INRUSD
Revenue64,754.30M925.81M
Gross Profit27,594.80M394.53M
Operating income8,785M125.60M
Income before tax8,793.10M125.71M
Net income5,636.80M80.59M
EBITDA11,383.60M162.75M
Diluted EPS21.300.30
Dividends Per Share----
Total Assets53,844.10M777.25M
Total liabilities21,976M317.22M
Total equity31,837.70M459.58M
Operating cash flow----
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 27,594.80M
Operating income 4,223.20M 5,034.10M 3,742M 6,566.40M 8,785M
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 5,636.80M
EBITDA 6,298.60M 7,470.40M 6,612.50M 9,162.90M 11,383.60M
Diluted EPS 9.73 11.28 8.68 14.93 21.30
Dividends Per Share 1 1.15 1.15 2 --
Total Assets 39,169.80M 44,007M 45,125.20M 47,745.10M 53,844.10M
Total liabilities 20,642M 22,510.50M 21,755.30M 20,813.10M 21,976M
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 --
 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 394.53M
Operating income 69.07M 76.89M 55.80M 101.85M 125.60M
Income before tax 61.98M 69.44M 51.91M 94.28M 125.71M
Net income 42.49M 45.56M 34.23M 61.14M 80.59M
EBITDA 103.01M 114.10M 98.61M 142.13M 162.75M
Diluted EPS 0.15 0.17 0.12 0.23 0.30
Dividends Per Share 0.01 0.01 0.01 0.03 --
Total Assets 625.90M 664.53M 694.92M 732.04M 777.25M
Total liabilities 329.84M 339.92M 335.03M 319.11M 317.22M
Total equity 295.71M 324.22M 359.46M 412.47M 459.58M
Operating cash flow 127.20M 70.55M 72.81M 79.85M --

Valuation Measures

Mar 2019
PER65.50
ROA11.09%
ROE19.19%
Operating margin13.56%
Profit margin8.70%

Key executives

  • Managing Director & Executive Director: Shekhar Ramamurthy
  • Senior Vice President-Operations & Malting: Rohtash Kumar Jindal
  • Senior Vice President-Operations: C. Gouri Shankar
  • Secretary, Senior VP-Legal & Compliance Officer: Govind Iyengar
  • General Manager-Marketing: Prem Korah

Shareholders

  • United Breweries Ltd. (34.0%)
  • Government of India (16.6%)
  • Heineken NV (12.4%)
  • MALLYA VIJAY (8.0%)
  • First State Investment Management (UK) Ltd. (3.1%)
  • Arisaig Partners (Asia) Pte Ltd. (2.2%)
  • McDowell Holdings Ltd. (1.7%)
  • Franklin Templeton Asset Management (India) Pvt Ltd. (1.3%)
  • Kamsco Industries Pvt Ltd. (1.2%)
  • Derive Trading 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

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