Stock Market Today: United Breweries share price ended with sharp gains of almost 10% on Wednesday.
The release by United Breweries referred to a generic statement provided by Heineken N.V. (Promoter Group) for their Q1 (January-March 2024)- trading updates in their media release.
The statement appeared as“In India, net revenue (beia) grew by 20% organically, driven by volume and positive price mix.
The street and analysts have been expecting good sales growth for United Breweries.
Over the next three to five years Nuvama expects United Breweries growth to surpass that of the global beer market due to its emphasis on regaining market share and expanding the category.
Stock Market Today: United Breweries share price ended with sharp gains of almost 10% on Wednesday. The promoter Heineken N.V reported strong beer sales during January-March 2024 quarter.
The release by United Breweries referred to a generic statement provided by Heineken N.V. (Promoter Group) for their Q1 (January-March 2024)- trading updates in their media release. The statement appeared as
“In India, net revenue (beia) grew by 20% organically, driven by volume and positive price mix. Beer volume grew in the low-teens, ahead of the market, cycling route-to-market changes from last year"
The statement further said that"To celebrate International Women's day, we introduced Queenfisher, an all-women initiative. Our premium portfolio grew volume in the low twenties, led by Kingfisher Ultra and Heineken® Silver."
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The street and analysts have been expecting good sales growth for United Breweries.
Analysts at Nuvama Institutional Equities in their recent report had said that they believe United Breweries with a 10% volume rise in Q4FY24, will surpass its competitors with the help of innovations.
Over the next three to five years Nuvama expects United Breweries growth to surpass that of the global beer market due to its emphasis on regaining market share and expanding the category.
To be sure though analysts expects requirement for new bottles that will be needed in order to focus on premiumization, which may initially result in somewhat higher packaging costs. However there is low beer penetration in urban India, less than 20% and hence there is a lot of space to grow, said analysts.
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Meanwhile for the quarter ending March'2024, Kotak Institutional Equities expects 8.1% year-on-year volume growth to 50.4 million cases compared to 8% and 7% y-o-y volume growth reported in Q3FY24 and Q2FY24, in line with the company's guidance of delivering mid-to-high single digit growth in the near future. There was impact of change in operating model in Tamil Nadu and Andhra Pradesh during the base quarter.
Kotak Institutional Equities pegs net realizations to grow 4.7% yoy led by price increases state mix changes, resulting in net sales growth of 13.5% y-o-y. They expect 100 basis points and 640 bps improvement in gross margins on sequential and y-o-y basis to 45%. Thus net profit at ₹244 crore is expected to grow 19.8% year on year as per Kotak Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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ABOUT THE AUTHOR Ujjval Jauhari Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi. Read more from this author
