MOSL: UNITED BREWERIES (Neutral)-Floods, unfavorable mix and demand slowdown impact performance
United Breweries: Floods, unfavorable mix and demand slowdown impact performance
(UBBL IN, Mkt Cap USD4.7b, CMP INR1254, TP INR1340, 7% Upside, Neutral)
- 2QFY20 standalone net sales grew 3.4% YoY to INR15.8b (v/s est. INR17.2b). EBITDA declined 39.5% YoY to INR1.9b (v/s est. INR2.9b). PBT declined 53.7% to INR1.2b (v/s est. INR2.1b). Adj. PAT declined 29.7% YoY to INR1.2b (v/s est. INR1.4b). Volumes in 2QFY20 grew 6%.
- In 1HFY20, sales/EBITDA/PAT registered a growth of 6.9%/-27.4%/-27.5%.
- Challenges in the form of severe monsoons, cost pressures and overall slackness in the market (especially in key states of Karnataka and Maharashtra) affected the company during the quarter, according to the press release.
United Breweries is an alcoholic brewing company based in India. Co. is engaged in the manufacturing and marketing of beer made from malt and allied products. Co.'s brewery products include Kingfisher, UB Premium Ice Beer, Charger Extra Strong Beer, Kalyani Black Lable, Kalyani Export Special, Kalyani Black Label Strong, Bullet Super Strong Beer and UB Export. Co. is also engaged in manufacturing of liquors, beer, leather shoes, organic and inorganic petrochemicals, ciprofloxacin, amitriptylene, and ibuprofen. Co.'s other activities include publishing and printing newspaper and journals; selling and servicing of Hitech Medical equipment; operation of a cable television network and others.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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