The brewer largely exceeded analysts’ expectations because of its push into the premium beer segment.

United Breweries Ltd (UBL), India’s largest beer maker controlled by Dutch multinational Heineken NV, reported a 23.47% increase in consolidated net profit for the second quarter ended September 30, 2024, rising to INR132.33 crore (US$1.56 billion), surpassing analysts’ expectations.

The company’s revenue from operations grew by 13.13%, primarily driven by a 5% increase in total volume, despite unfavourable weather conditions during the quarter. The North and West regions contributed significantly to this volume growth.

Operating income, measured as earnings before interest, taxes, depreciation, and amortisation (EBITDA), rose by 23%. The EBITDA margin expanded to 10.7% from 9.8% in the previous year, aligning with analyst estimates.

Gross profit also increased by 13%, fuelling a 26% rise in earnings before interest and taxes (EBIT), and supported substantial investments in the company’s brands and organisational capabilities.

A key driver of the good performance was the premium segment. which witnessed a robust volume growth of 27%, led by strong performances from flagship brands such as Kingfisher Ultra, Kingfisher Ultra Max, and Heineken Silver. This surge in the premium category underscores the company’s successful strategy in tapping into the growing consumer preference for premium beers.

Looking ahead, United Breweries expressed optimism about the industry’s long-term growth potential in the country. The company cited factors such as increasing disposable income, favourable demographics, and a trend towards premiumisation as key drivers that are expected to bolster the beer market in India.