United Breweries reports 20.4% rise in profit in Q4 FY25 amid regulatory challenges

United Breweries registered a 20.4% rise in standalone profit in the Quarter 4 for the fiscal year 2025. The beer-manufacturing company posted a profit of Rs 97.38 crore in Q4 FY25 compared to Rs 80.84 crore in the corresponding quarter last fiscal.

Overall, UBL's FY25 profit soared to Rs 441.17 crore-- an increase of 7.7% year-on-year.

However, the total income of the company reduced by 7.8% in Q4 FY25 YoY.

United Breweries' total income declined from Rs 4,813.15 crore in Q4 FY24 to Rs 4,433.38 crore in Q4 FY25.

The revenue from beer dropped by 7.5% to Rs 4,422.25 crore in the January-March quarter FY25. While non-alcoholic beverages' revenue stood at Rs 3.28 crore in the same period.

Notably, the Q4 volume grew at 5% despite a temporary suspension in Telangana and duty structure changes in Karnataka.

Earlier this year, UBL suspended beer supply to Telangana, citing financial losses due to the non-revision of basic prices since 2019-20 and overdue payments from Telangana Beverages Corporation Ltd (TGBCL) for previous supplies. Additionally, Karnataka government raised the "Additional excise duty" (AED) on beer to 205% and is planning another hike.

UBL registered 11% volume growth in Maharashtra, Madhya Pradesh, and Goa, 3% volume growth in Uttar Pradesh and Punjab, partially offset by a decline in Rajasthan, and 0% volume growth in Odisha and Assam, impacted by business in West Bengal.

In the full fiscal 2025, UBL volumes surged to 6%, with premiums growing 32%. The company said the volume growth was mainly driven by Andhra Pradesh, Uttar Pradesh, Maharashtra, and Assam.

To sustain the growth, the brewery major has plans to build further category growth while driving the share of premium. UBL said it will also focus on revenue management and cost initiatives to drive profitability margins by ramping up investments in its brands.

The company has expressed optimism about the long-term growth potential of the beer category, driven by "increasing disposable income, favorable demographics, and premiumization".