United Breweries posted a strong set of Q3 results, beating estimates on all parameters. Volume growth of 16 percent stood out for the company this quarter.
Discussing the numbers, Shekhar Ramamurthy, MD of the company, said the company saw broad-based growth geographically and across all brands.
When asked about growth, he said, “We cannot predict growth as high as 16 percent but we do see industry growth being strong single digit and we always hope to grow 2 percent ahead of that. So 10-12 percent growth is something we do expect in Q4.”
“Q1 of FY20 will be difficult because there are elections and election bring a lot of disruption to our industry in terms of closure of outlets, restriction on dispatches, etc. So April and May, which is a peak season for beer, will be impacted,” he said.
On margins front, Ramamurthy said, “In our industry margins are difficult to predict because it’s a combination of brand, state, pack. However, we are hopeful of continuing to deliver good margins and we also have strong cost initiative which we have been talking about over the last 12-24 months.”