United Breweries Limited
Nine Month ended
December 2006
Presentation January 2007
Key performance highlights
• UBL continues to have the top selling mild &
strong beer in India
• 28% volume growth
• Kingfisher growth mild 21%, strong 50%
• EBITDA at the end of 3rd quarter 118 Cr. against
85 Cr., growth of 38%
• Profit after tax - nearly 100% growth
• Planned capacity expansion on track
• New Greenfield sites operational by end of Q04
• Interim dividend announced at 15%
Operational performance
Industry Overview
+ 35.4%
+ 31.2%
+ 23.07%
+ 18.17%
+ 15.69%
11.20%
Ytd dec 06 Ytd dec 05
Total Industry
Ytd dec 06 Ytd dec 05
Strong Beer
Ytd dec 06
Ytd dec 05
Mild Beer
Kingfisher Performance
18.6m
+21%
17.4m
+50%
14.4m
12.5m
Dec 05
Dec 06
Premium
Dec 05
Dec 06
Strong
Financial Performance
Results Dec 06
United Breweries Limited
In rupees crore
Nine months ended
31.12.2006
31.12.2005
Unaudited #
Net Sales/Income from operations
Other Income
Total Income
Expenditure
Cost of production
Advertisement & Sales Promotion
Other operating Costs
601.10
9.59
610.70
392.88
10.92
403.80
283.05
115.48
93.69
182.76
82.22
53.24
PBIDT
Margin on sales
118.48
19.40%
85.57
21.19%
PBIDT
118.48
85.57
Finance charges
17.48
14.88
Depreciation
16.00
8.55
Profit Before Non recurring items &Taxation
85.01
62.14
Non Recurring items
-
(13.18)
Taxation
Net Profit
(31.58)
53.43
(21.81)
27.14
COMBINED BUSINESS
PBIDT
Finance charges
Depreciation
Profit Before Non recurring items &Taxation
141.02
40.89
31.22
68.91
89.69
36.37
19.81
33.51
51%
38%
37%
97%
57%
106%
# Dec 06 results include ABDL + MBDL Comparative results
for Dec 05 Income Rs. 453.8Cr EBITDA Rs. 88.57 Cr.
EBITDA Dec 05 Vs Dec 06
Revenue effect in Rs. Crore
Decrease
in Interest
Income,
(1.33)
Increase
on
realisation
, 80.88
Vol.
driven
increase,
52.17
Cost effect in Rs. Crore
Higher
price of
Inputs,
(14.92)
Higher
Ad
spends,
(40.43)
Higher
operating
costs,
(11.46)
Revevue Effect
Vol. driven increase
Increase on realisation
Decrease in Interest Income
85.57
Increase
other
Selling
Costs,
(21.82)
Higher
staff
costs,
(10.18)
Cost Effect
Rs. crore Rs. crore
52.17
(14.92) Higher price of Inputs
80.88
(21.82) Increase other Selling Costs
(1.33)
(10.18) Higher staff costs
(11.46) Higher operating costs *
(40.43) Higher brand spends
131.72
(98.81)
131.72
(98.81) 118.48
* Stock build up to enable shut down for installation & commissioning of
plant in line with expansion plans
Summary Balance Sheet
UBL
Rupees Million
Sources
Share Holders Funds
Loan Funds
Total Sources
Application
Fixed Assets
Investments
Net Current Assets
Total Application
As at
As at
As at COMBINED BUSINESS
31.12.06
31.12.05
31.3.06
31.12.06
31.3.06
5,590
3,988
9,578
3,892
2,035
5,927
5,072
2,534
7,606
3,516
6,613
10,129
3,159
5,586
8,746
2,823
2,196
4,559
9,578
1,382
1,820
2,725
5,927
2,104
591
4,911
7,606
4,341
1,605
4,182
10,129
3,376
17
5,352
8,746
Key Ratios
UBL
As at
As at
31.12.06
31.12.05
31.3.06
31.12.06
31.3.06
Debt
3,988
2,035
2,534
6,613
5,586
Net Worth
5,590
3,892
5,072
3,516
3,159
GEARING
0.71
0.52
0.50
1.88
PBIDT
1,185
856
1,371
1,410
1,487
Interest
175
149
239
409
529
INTEREST COVER
6.78
5.75
5.74
3.45
2.81
Capital Employed *
9,578
5,927
7,606
10,129
8,746
Rupees Million
ROCE
As at COMBINED BUSINESS
12%
14%
18%
14%
17%
for 3 qtrs for 3 qtrs
for the year for 3 qtrs for the year
EPS
2.47
12.10
4.67
EPS for 3 qtrs ended 31.12.06 is on a face value of Re 1.
Average Realization and Cost of sales
Sales Realization Cost Index
NSR
120
100
COS
100
105
106
105
105
61
57
59
59
59
80
60
NSR :
45% of all volume in
2006-07 has not
benefited from a price
increase
Cost:
40
20
0
31/03/2005 31/03/2006 June qtr 31- Sept qtr Dec qtr 3103-2007 31-03-2007 03-2007
Raw material price
increase offset by
improved efficiencies