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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 firm's 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 2022 INRUSD
Revenue58,384.40M783.58M
Gross Profit18,638.70M250.15M
Operating income4,924M66.08M
Income before tax4,944.40M66.35M
Net income3,654.60M49.04M
EBITDA7,095.90M95.23M
Diluted EPS13.820.18
Dividends Per Share10.500.14
Total Assets59,705M787.92M
Total liabilities20,312.40M268.06M
Total equity39,351.20M519.31M
Operating cash flow8,964.70M120.31M
Currency in INRCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 56,190.20M 64,754.30M 65,092.40M 42,430.90M 58,384.40M
Gross Profit 20,154.30M 23,676.30M 21,843.90M 12,704.60M 18,638.70M
Operating income 6,566.40M 9,092.30M 6,090.60M 1,966.80M 4,924M
Income before tax 6,078.20M 8,793.10M 5,689.20M 1,694.10M 4,944.40M
Net income 3,942M 5,629.40M 4,277.30M 1,132.20M 3,654.60M
EBITDA 9,162.90M 11,690.90M 8,941.60M 4,286.90M 7,095.90M
Diluted EPS 14.93 21.29 16.17 4.28 13.82
Dividends Per Share 2 2.50 2.50 0.50 10.50
Total Assets 47,745.10M 54,315.70M 55,774.50M 58,788.20M 59,705M
Total liabilities 20,813.10M 22,447.60M 20,538.50M 22,927.90M 20,312.40M
Total equity 26,902.60M 31,837.70M 35,202.60M 35,822.80M 39,351.20M
Operating cash flow 5,147.90M 6,188M 4,833.60M 5,967.30M 8,964.70M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 871.62M 925.81M 918.00M 571.57M 783.58M
Gross Profit 312.63M 338.50M 308.06M 171.14M 250.15M
Operating income 101.85M 129.99M 85.89M 26.49M 66.08M
Income before tax 94.28M 125.71M 80.23M 22.82M 66.35M
Net income 61.14M 80.48M 60.32M 15.25M 49.04M
EBITDA 142.13M 167.14M 126.10M 57.74M 95.23M
Diluted EPS 0.23 0.30 0.22 0.05 0.18
Dividends Per Share 0.03 0.03 0.03 0.00 0.14
Total Assets 732.04M 784.05M 737.25M 804.06M 787.92M
Total liabilities 319.11M 324.03M 271.48M 313.59M 268.06M
Total equity 412.47M 459.58M 465.32M 489.95M 519.31M
Operating cash flow 79.85M 88.47M 68.16M 80.38M 120.31M

Valuation Measures

Mar 2022
PER107.71
ROA6.16%
ROE9.72%
Operating margin8.43%
Profit margin6.25%

Key executives

  • Chief Executive Officer, MD & Executive Director: Rishi Pardal
  • Senior Vice President-Operations & Malting: Rohtash Kumar Jindal
  • Senior Vice President-Operations: C. Gouri Shankar
  • Chief Financial Officer & Director: Radovan Sikorsky
  • 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. (2.8%)
  • Kotak Mahindra Asset Management Co. Ltd. (1.8%)
  • McDowell Holdings Ltd. (1.7%)
  • Franklin Templeton Asset Management (India) Pvt. Ltd. (1.6%)
  • SBI Funds Management Pvt Ltd. (1.4%)
  • Kamsco Industries 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

    Last Updated on 4 Oct, 2022

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