United Breweries Ltd. shares climbed as much as 5.1% on Monday to Rs 1,419.90, extending gains for a second straight session, as investors assessed the brewer's FY26 annual report, in which it said it has initiated pricing interventions, operating cost optimisation measures and structural productivity initiatives to mitigate higher input costs linked to geopolitical disruptions in the Middle East.
In its FY26 integrated annual report, United Breweries said ongoing tensions in the Middle East have led to supply chain disruptions and higher raw material, packaging, transportation and operating costs, which are expected to affect the next few quarters. To address these pressures, the company said it has "initiated pricing interventions, operating cost optimisation measures, and structural productivity initiatives while continuing engagement with regulators."
"Despite these near-term headwinds, we remain well-positioned for sustainable growth, backed by its strong manufacturing network, brand portfolio, and strategic investments," the company said in the annual report.
Margin Pressure
The latest commentary follows a year in which rising costs weighed on profitability despite resilient demand for premium beer.
During the first half of FY26, United Breweries' overall volumes rose 4%, while premium volumes increased 33%. In the second quarter, premium volumes grew 17% even as overall volumes fell 3%, which the company attributed to a stronger-than-usual monsoon and a weaker beer market.
The report also said the company has initiated pricing interventions, operating cost optimisation measures and structural productivity initiatives while continuing engagement with regulators
The report also said the company responded to the challenging operating environment through "pricing interventions, operating cost optimisation measures, and structural productivity initiatives" while continuing to invest for long-term growth.
Street View
United Breweries shares were up 4.6% at Rs 1,413.30 at 11:30 a.m., after earlier rising as much as 5.1% to Rs 1,419.90. The stock has gained for two consecutive trading sessions.
According to Bloomberg data, eight analysts have a "buy" rating on the stock, while 10 recommend "sell". The consensus price target is Rs 1,442.11, implying about 2% upside from the previous closing price.
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