- United Breweries CEO stressed the importance of beer affordability for category growth
- He urged states like Telangana, Andhra, and Tamil Nadu to reduce beer taxation levels
- UBL reported a 4.6% profit increase but a 3% decline in revenue for the last fiscal quarter
United Breweries Ltd MD and CEO Vivek Gupta emphasised that maintaining affordability of beer remains critical as the company aims to sustain category growth amid the ongoing Middle East conflict.
Speaking to NDTV Profit on Wednesday, May 6, Gupta said, "Affordability of beer is extremely important. We don't want to create a problem for the category growth because we just pass on the pricing to consumer."
He highlighted the need to work more with regulators saying, "Of every Rs 100 the consumer pays for beer Rs 70 goes to the government. I think that is where they have to reduce the taxation so that affordability is maintained for the consumer, and category growth continues to happen."
Gupta specifically urged states such as Telangana, Andhra, Tamil Nadu to help the industry, stating "unlike other industries, we cannot just go and pass on the pricing to the consumer." These states remain key markets for the beer-maker, where the brand enjoys strong popularity.
ALSO READ: United Breweries Q4 Results: Profit Up 4% Even As Revenue Slips; Dividend Declared
The company announced fourth quarter earnings for the previous fiscal on Tuesday, reporting 4.6% growth in profit, according to an exchange filing. The company posted a consolidated bottomline of Rs 102 crore, compared to Rs 97.6 crore in the year-ago period.
However, revenue from operations has declined over 3% to Rs 2,250 crore as against Rs 2,323 crore in the corresponding quarter last year. Earnings before interest, taxes, depreciation, and amortisation slumped 25.5% to Rs 139 crore from Rs 187 crore year-on-year, while Ebitda margin narrowed from 8% in Q4FY25 to 6.2% in the quarter under review.
UBL highlighted it would see a cost impact of Rs 4-Rs 5 billion in the next two to three quarters. The company also declared a final dividend of Rs 10 per share, and stated that if approved, it would be paid on or before September 10, 2026.
ALSO READ: Beer, Whisky Set To Cost More In Hyderabad As Telangana Reviews Price Hike Proposal
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
