United Breweries Limited · NSE:UBL
United Breweries — Q2 FY2021 Earnings Presentation
12 slides from United Breweries's earnings presentation, Nov 9, 2020
Slide 1: Intimation of Earnings Call to BSE and NSE
November 09, 2020 1. The Secretary-Listing Department 2. The Manager-Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot. C/1, G Bl. Dalal Street, Fort Bandra-Kurla Complex, Bandra (East) Mumbai - 400 023 Mumbai – 400 051
Slide 2: Investor Presentation Quarter ended Sep 2020
Investor Presentation Quarter ended Sep 2020 1
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements with regard to the financial position and results of UBL’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-loo
Slide 4: Key Results Highlights
Key Results Highlights • Q2 witnessed gradual recovery from the impact of the pandemic vs Q1, with volume decline in Q2 at 48% improving vs Q1 volume decline of 77%. • Q2 saw continued impact of Covid-19 related restrictions. However, the demand environment improved month by month, with an encouragi
Slide 5: Q2 20/21 Results
Q2 20/21 Results Q2 Results (standalone) Data in Rs. Cr. Sep-20 Sep-19 Change (%) Net Sales 901 1,579 -43% COGS (430) (756) -43% Gross Profit 471 823 -43% Employee expenses (110) (123) -11% Other expenses (320) (507) -37% Other income 33 2 1625% EBITDA 73 194 -62% Depreciation (61) (69) -11% EBIT 12
Slide 6: YTD 20/21 Results
YTD 20/21 Results YTD Results (standalone) Data in Rs. Cr. Sep-20 Sep-19 Change (%) Net Sales 1,408 3,627 -61% COGS (700) (1,773) -61% Gross Profit 707 1,854 -62% Employee expenses (225) (246) -9% Other expenses (537) (1,086) -51% Other income 34 5 573% EBITDA (21) 526 -104% Depreciation (112) (138)
Slide 7: Regional volume performance vs PY
Regional volume performance vs PY Volume Growth Total Company (Q2, YTD) (-48%, -64%) – Recovery in Q2 driven by gradual opening up of the markets East (-59%, -76%) North (-32%, -54%) o Orissa & West Bengal industry recovery o Recovery in Q2 driven by Delhi, below national average. Rajasthan, Uttar P
Slide 8: Net Sales decline driven by volume impact
Net Sales decline driven by volume impact Revenue Q2 (in Rs. Cr) -763 ; (-48%) 1,579 85 ; (5%) 901 Net Rev PY Volume Variance Mix / Price var Net Rev CY YTD 3,627 -2331 ; (-64%) 111 ; (3%) 1,408 • Favorable price/mix variance driven by positive state mix, price increases & brand mix. 7
Slide 9: Cost measures mitigating profit impact
Cost measures mitigating profit impact EBITDA Q2 (in Rs. Cr) 194 (352) 217 73 14 EBITDA PY Gross Profit Employee expenses Other EBITDA CY expenses/income YTD 526 (1,147) 22 578 (21) • Gross profit decline driven by volume reduction, gross margin in Q2 up by 16 bps vs prior year. • Decline in expense
Slide 10: Robust FOCF driven by improvement in Working Capital
Robust FOCF driven by improvement in Working Capital YTD Sep ∆ Cashflow in Rs. Cr. 2019-20 2020-21 (+/-) Operating CF before change in WC 525 (16) (541) Change in Working Capital (405) 229 634 Cash Flow from Operations 119 213 93 Operational Investments (199) (96) 103 Managerial Cash Flow (80) 117 1
Slide 11: Outlook and summary
Outlook and summary • The Company continues to put health & safety of all staff and stakeholders as first priority. All breweries and business functions are operational and compliant with Covid-19 safety norms. • The volatile trajectory of the pandemic results in considerable uncertainty on consumer
Slide 12: 11
11