- United Breweries expects revenue CAGR of 10% and adjusted profit CAGR of 25% for FY25-28E
- Volume challenges and delayed margin recovery limit positive outlook despite growth potential
- Margin gains come from price hikes, premiumization, localization, and increased returnable bottles
The brokerage expects United Breweries' revenue/gross profit/Ebitda/adjusted proift after tax CAGR of 10/12/21/25% over FY25-28E, driven by low base and Oplev, following flat earnings for ~eight years. However, volume headwinds, weak and delayed recovery in margins and rich valuations are constraining factors to turn constructive.
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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.
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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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