India · Delayed Price · Currency is INR United Breweries Earnings Call Transcripts
Fiscal Year 2026
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Q4 saw a return to strong category growth and premiumization, but EBIT declined due to higher brand investments and persistent cost pressures from energy and packaging. FY 2027 is expected to deliver 6%-7% volume growth, with ongoing mitigation of cost headwinds and continued CapEx for capacity and innovation.
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Q4 FY2025 saw 4% sales growth, 220 bps gross margin expansion, and 86% EBIT growth, driven by price/mix, operational efficiencies, and premiumization. Affordability and input inflation remain key risks, but productivity programs and innovation support a positive long-term outlook.
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Q2 FY26 volumes declined 3% year-over-year due to monsoon and affordability issues, but premium segment volumes grew 17% and market share increased. Gross margin was 42.8%, EBIT fell 18% for the half-year, and CapEx rose to support growth. Premiumization and cost optimization remain key priorities.
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Q1 FY26 saw 11% volume and 16% net sales growth, with premium segment up 46% and strong market share gains. Margin expansion remains a long-term focus amid supply and regulatory challenges, while CapEx is increasing to support growth.
Fiscal Year 2025
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Q4 saw 5% volume and 9% net sales growth, with premium segment up 24% and gross margin at 42.1%. Strategic CapEx in UP and distribution redesign support long-term growth, while regulatory and supply chain challenges persist.
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Q3 saw 8% volume growth and 10% net sales increase, driven by premiumization and price hikes, but EBIT declined due to investments and one-time costs. Major CapEx in UP and new product launches support long-term growth, while policy and affordability risks remain.
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Q2 saw 5% volume and 12% net sales growth, with premium segment up 27% and EBIT up 23%. Amstel Grande launched to accelerate premiumization, while regulatory and weather headwinds persist. Gross margin was 44%, slightly down year-over-year but improved sequentially.
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Net sales rose 9% year-over-year, with premium volume up 44% and EBIT up 29%. Margin gains were driven by product mix and revenue management, while election-related restrictions temporarily impacted market share. Strategic focus remains on premiumization, capacity expansion, and regulatory engagement.