United Breweries Limited (UBL) announced its results for Q2 2025, showing a 3% decline in overall volume due to a stronger-than-usual monsoon. However, the premium segment continued its growth trajectory, rising by 17%. The company is focused on productivity and cost efficiency to drive sustainable growth. EBIT declined by 55%, and net sales also decreased by 3%.
Q2 2025 Financial Performance
United Breweries Limited reported a challenging Q2 2025 with overall volume declining by 3.4%, primarily due to adverse weather conditions. Despite this, growth was seen in Maharashtra, Andhra Pradesh, and Assam. The quarter’s net sales were down by 3%, influenced by volume decline and negative state & source mix, though pricing improvements were made.
Segment Performance
The premium segment showed significant resilience, growing by 17% in the second quarter, contributing to a 33% growth in the first half of the year. Key contributors to this growth include Kingfisher Ultra, Kingfisher Ultra Max, and Heineken® Silver.
Profitability & Investments
Gross profit experienced a growth of 5% year-to-date. However, EBIT declined by 18%, primarily due to operating deleverage in Q2 and continued investments in brands. The company invested Rs. 293 Cr in capex, primarily directed towards a new greenfield facility in Uttar Pradesh and commercial enhancements.
Strategic Initiatives
United Breweries continues to focus on network optimization and productivity. The Mangalore unit was closed earlier this year as part of ongoing efforts to improve operational excellence and cost efficiency across the organization.
Outlook
United Breweries remains optimistic about the long-term potential of the industry, driven by increasing disposable income and premiumization trends.
Source: BSE
