Transcript United Breweries Limited quarterly briefing – Apr 06

United Breweries Limited
half yearly briefing – Apr 06- Sept 06
Presentation October 2006
Key performance highlights
•
•
•
•
•
28% volume growth
Growth of Kingfisher mild 22%, strong 48%
KF Strong now No. 1 Brand in India
KF Premium remains No.1
EBITDA Rs.87 Crore as against Rs.64 Crore, growth of
35% versus H1 last year
• Profit after tax - over 100% growth
• Operating margins remain at over 20%.
• Capacity expansion program (Rs.141 crores , 22% increase capacity)
,& green field sites underway (Rs.92 crores), Orrisa – 15lac cases &
Rajasthan – 72 lac cases p.a.)
• Enhanced capacities to be completed before the coming
summer season
Operations Review
UB : Growth – Sept 06 vs Sept 05
Growth surge sustained…
Strong,
32.50%
24.80%
Mild,
16.80%
18.60%
H1 2006-07
… specially in the Strong beer segment
30.09.05
30.09.06
*Combined Operations
KINGFISHER GROWTH
48%
•K
F Strong now the
No. I strong beer
brand AND No.I top
selling brand in
India
22%
K F Premium
K F Strong
• K F Premium 2nd
top selling brand in
India, and No.1 Mild
beer brand
Market Share
47.5%
30.6%
10.6%
5.4%
UBL
Group
SAB Mohan
M
3.6%
Mt.
Shiv
2.3%
Fosters Others
Market Share
38.3%
5.40%
MM
2.30%
Fosters
47.5%
30.6%
10.6%
3.6%
UBL Group
SAB +
Mt. Shiv
Others
Competition
• International players entry likely to stimulate market
growth
– APB: Possible acquisition of Manav, Lilasons and in addition
to Arlem
– Carlsberg : License for Greenfield in Rajasthan; acquisition of
Himneel
– Budweiser: Stake in Crown/AP for Greenfield
• Fosters acquisition by SABMiller
– Most likely to be positioned as ‘affordable premium’(5%), cross
lined to Kingfisher
• Investment in brands and brand equity will play a key
role in driving competitive advantage
Financial Review
Results Sept 06
United Breweries Limited
In rupees crore
Net Sales/Income from operations
Other Income
Total Income
Expenditure
Cost of production
Advertisement & Sales Promotion
Selling & Distribution
Other operating Costs
PBIDT
Half year ended
30.9.2006
30.9.2005
Unaudited
415.12
5.37
420.49
272.00
9.08
281.08
50%
193.71
69.19
45.12
25.51
86.96
128.79
51.42
17.61
18.94
64.32
35%
Finance charges
12.00
10.39
Depreciation
10.15
5.68
Profit Before Non recurring items &Taxation
64.82
48.25
-
(13.18)
Taxation
Net Profit
(24.09)
40.72
(17.17)
17.90
COMBINED BUSINESS
PBIDT
Finance charges
Depreciation
Profit Before Non recurring items &Taxation
109.73
27.29
20.11
62.33
78.14
24.60
20.46
33.08
Non Recurring items
34%
127%
40%
88%
30.09.06 include results of recently merged ABDL & MBDL
EBITDA SEPT 05 Vs SEPT 06
Cost effect in Rs. Crore
Revenue effect in Rs. Crore
Decrease
in Interest
Income,
(3.70)
Increase
on
realisation
, 54.39
Vol.
driven
increase,
35.93
Higher
price of
Inputs,
(6.16)
Higher
Ad
spends,
(16.18)
Higher
operating
costs,
(6.58)
Revenue Effect
Vol. driven increase
Increase on realisation
Decrease in Interest Income
Higher
staff
costs,
(5.94)
Cost Effect
Rs. crore Rs. crore
35.93
(6.16) Higher price of Inputs
54.39
(29.11) Increase other Selling Costs
(3.70)
(5.94) Higher staff costs
(6.58) Higher operating costs
(16.18) Higher brand spends
86.61
(63.96)
+ 22.65
Increase
other
Selling
Costs,
(29.11)
Key Ratios
UBL
As at
As at
30.9.06
30.9.05
Debt
3,058
1,779
Net Worth
5,479
5,196
GEARING
0.56
0.34
PBIDT
870
643
Interest
120
104
7.25
6.19
8,538
6,976
Rupees Million
INTEREST COVER
Capital Employed
ROCE
10%
9%
for the qtr for the qtr
EPS
18.85
7.82
EPS in the current year is on a face value of Re 1.
Outlook
• Expect strong double digit growth, led by strong
beer
• Focus on building brand equity
• MAPL debt restructuring now complete, savings
will accrue to combined operations in H2
• KBDL operations to be merged with UBL by end
March 2007
• Continuing price control in major markets
• Real inflationary increases in key raw materials
• Large Capital outlay to meet growing demand