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Consumer Non-Durables

United Breweries Ltd.

  • 1,300.00 INR
  • -58.80
  • -4.33%
  • India
    May 17, 2019
  • Ticker
    BOM(532478)
  • Prev. close
    1,358.80
  • Market cap (INR)
    359,274M
  • Market cap (USD)
    5,115.49M
  • 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 2018 INRUSD
Revenue56,190.20M871.62M
Gross Profit20,154.30M312.63M
Operating income6,566.40M101.85M
Income before tax6,078.20M94.28M
Net income3,942M61.14M
EBITDA9,162.90M142.13M
Diluted EPS14.930.23
Dividends Per Share20.03
Total Assets47,745.10M732.04M
Total liabilities20,813.10M319.11M
Total equity26,902.60M412.47M
Operating cash flow5,147.90M79.85M
Currency in INRCurrency in USD

Historical Data

 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 42,296.60M 46,881.10M 48,331.40M 47,291.90M 56,190.20M
Gross Profit 17,798.90M 20,088.70M 18,051.80M 16,351.30M 20,154.30M
Operating income 3,904.40M 4,223.20M 5,034.10M 3,742M 6,566.40M
Income before tax 3,351.40M 3,790M 4,546.50M 3,481.30M 6,078.20M
Net income 2,260.20M 2,598.40M 2,983M 2,295.70M 3,942M
EBITDA 5,882.60M 6,298.60M 7,470.40M 6,612.50M 9,162.90M
Diluted EPS 8.45 9.73 11.28 8.68 14.93
Dividends Per Share 0.90 1 1.15 1.15 2
Total Assets 39,189.40M 39,169.80M 44,007M 45,125.20M 47,745.10M
Total liabilities 22,104.40M 20,642M 22,510.50M 21,755.30M 20,813.10M
Total equity 17,066.20M 18,506.10M 21,471.20M 23,342.10M 26,902.60M
Operating cash flow 2,134.40M 7,777.60M 4,619.30M 4,882.80M 5,147.90M
 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 699.87M 766.73M 738.21M 705.24M 871.62M
Gross Profit 294.51M 328.55M 275.72M 243.84M 312.63M
Operating income 64.60M 69.07M 76.89M 55.80M 101.85M
Income before tax 55.45M 61.98M 69.44M 51.91M 94.28M
Net income 37.39M 42.49M 45.56M 34.23M 61.14M
EBITDA 97.33M 103.01M 114.10M 98.61M 142.13M
Diluted EPS 0.13 0.15 0.17 0.12 0.23
Dividends Per Share 0.01 0.01 0.01 0.01 0.03
Total Assets 656.19M 625.90M 664.53M 694.92M 732.04M
Total liabilities 370.11M 329.84M 339.92M 335.03M 319.11M
Total equity 285.75M 295.71M 324.22M 359.46M 412.47M
Operating cash flow 35.31M 127.20M 70.55M 72.81M 79.85M

Valuation Measures

Mar 2018
PER63.43
ROA8.48%
ROE15.69%
Operating margin11.68%
Profit margin7.01%

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. (3.5%)
  • 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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