Concall Summary: United Breweries Ltd Q4FY20

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Participants

  • Edelweiss
  • Goldman Sachs
  • Emkay Global
  • Investec
  • Dalal & Broacha
  • Invesco
  • Nippon Life
  • Motilal Oswal
  • Reliance
  • Securities Investment Management
  • Nirmal Bang

Concall highlights

  • Volume growth excluding Covid-19 would have been -6% for Q4 and flat for the full year
  • Company has estimated impact of Rs 103 crores in March; Rs 87 crores on account of volume loss and Rs 16 crores (reported in other expenses) for provision related to product expiry
  • Free cash flow for the year was Rs 78 crores
  • Net Debt stood at Rs 217 crores as on 31st March 2020
  • North market down 3% for full-year and 18% for Q4
  • West market down 9% for full-year 29% for Q4
  • East market up 18% for full-year and -2% for Q4. West Bengal market has recovered during the year while Odisha market was flat and Jharkhand grew
  • South market down 7% for full-year and 27% for Q4
  • Gross margin impacted due to a rise in malt and glass bottle cost
  • Plants are running at 55-60% capacity due to restrictions on working hours and weak demand
  • One brewery is not operational as it is in containment zone (Mumbai)
  • Sales volume in May down 70% from last year
  • Many states have increased excise duty, but Delhi has already rolled back the COVID cess
  • Beer market has been impacted more than liquor market
Also Read on FinMedium:  Concall Summary: V Mart Retail Ltd Q4FY20

Image source: Company website

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Karan Sharma
The Concall Summary Guy | CFA | Investor
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