India's United Breweries posts higher Q2 profit on strong premium beer demand
Oct 24 (Reuters) -India's United Breweries UBBW.NS reported a risein second-quarter profit on Thursday, driven by higher demand for its small, but fast-growing premium beers.
The Kingfisher beer manufacturer's standalone profit jumped23% to 1.32 billion rupees (nearly $16 million) for the three months to Sept. 30.
The brewer, which is majority-owned by Netherlands-based Heineken HEIN.AS, reported a 13% rise in quarterly revenue to 47.42 billion rupees.
KEY CONTEXT
Urban consumers with higher disposable incomes are looking to indulge in more premium alcohol, prompting companies to step up their offerings.
United Breweries' more premium beers, which include London Pilsner and Heineken Silver, have outpaced the growth of its cheaper beverages, helping boost its revenue and margins.
Rival Radico Khaitan RADC.NS also reported a higher second-quarter profit on increasing demand for premium alcohol.
PEER COMPARISON
Estimates (next 12 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Revenue growth (%) | Profit growth (%) | Mean rating* | # of analysts | Stock to price target** | Div yield (%) | |
United Breweries Ltd | UBBW.NS | 69.50 | 44.01 | 13.60 | 43.77 | Hold | 13 | 0.97 | 0.52 |
United Spirits Ltd | UNSP.NS | 64.24 | 43.43 | 10.09 | 13.47 | Buy | 10 | 1.02 | 0.61 |
Radico Khaitan Ltd | RADC.NS | 69.05 | 40.77 | 13.65 | 37.38 | Strong Buy | 6 | 1.11 | 0.14 |
Tilaknagar Industries Ltd | TILK.NS | 30.90 | 21.87 | -21.89 | 11.00 | Strong Buy | 1 | 0.87 | 0.18 |
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JULY TO SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 84.0460 Indian rupees
JULY TO SEPTEMBER STOCK PERFORMANCE https://tmsnrt.rs/3Ykv9l2
Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema
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