United Breweries Q4FY25 Result, Net Profit rises by 20% despite decline in Revenue

United Breweries Ltd (UBL), a subsidiary of Heineken NV, reported a consolidated net profit of ₹97.76 crore for Q4 FY25, marking a 19.87% increase from ₹81.55 crore in the same quarter the previous year. This growth occurred despite a 7.54% decline in revenue from operations, which stood at ₹4,427.15 crore compared to ₹4,788.68 crore in Q4 FY24.

Total income for the quarter decreased by 7.9% to ₹4,435.16 crore, while total expenses were reduced by 8.54% to ₹4,303.09 crore. The company's EBITDA margin improved by 370 basis points year-over-year, reaching 6.7%. 

Annual Performance and Dividend Announcement

For the fiscal year ending March 31, 2025, UBL reported a net profit of ₹442.41 crore, a 7.67% increase from ₹410.86 crore in the previous year. Consolidated income for the year rose by 5.37% to ₹19,444.44 crore. Reflecting its strong financial performance, the company's board recommended a final dividend of ₹10 per share, up from ₹7.5 per share the previous year. This dividend is subject to shareholder approval at the upcoming Annual General Meeting. 

Strategic Initiatives and Outlook

In Q4FY25, UBL's volume increased by 10.9%, primarily driven by growth in the South and East regions. The premium segment experienced a notable 21% growth, attributed to strong performances from Kingfisher Ultra and Kingfisher Ultra Max. The company introduced new products, including Queenfisher, to celebrate International Women's Day, and London Pilsner Strong Beer in Karnataka.

UBL invested ₹190 crore in capital expenditures during the year, focusing on supply chain enhancements. Despite ongoing inflationary pressures, particularly on barley and packaging materials, the company remains optimistic about the industry's long-term growth, driven by increasing disposable income, favorable demographics, and premiumization trends.

Market Response

On May 7, 2025, the day the results were announced, UBL shares closed at ₹2,181.80 on the BSE, up 2.12% from the previous close. As of May 8, 2025, the stock was trading at ₹2,165 with a marginal decline of 0.77%.

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