United Breweries Gets 'Reduce' From Dolat Capital Post Weak Q2 Earnings, Trims Target Price

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Dolat Capital Report

United Breweries Ltd.’s outlook remains mixed, with margin improvements driven by price hikes, higher returnable bottles, localization and premiumization being offset by investments in brands, premium bottles infusion, capacity expansion, plant R&M etc., resulting in modest and lumpy margin expansion.

Management targets low double-digit revenue growth through category expansion and 300-400bps Ebit margin expansion over next three-four years.

Policy consistency, timely price hikes, and lower taxes would be key enablers for growth. Though industry challenges may not resolve with ease.

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