UB reports 300 per cent spurt in net profit

Bangalore, Jun 25: Achieving a market capitalisation of 1.7 billion US Dollars, United Breweries Limited (UBL) today reported a net profit of Rs.65.09 crore for the fiscal 2006-07, up by over 300 per cent when compared to Rs.19.4 crore recorded during previous year.

The Company's Board, which met here today approved the balance sheet and announced an additional dividend of 10 per cent taking the overall dividend for the year to 25 per cent.

UBL has reported a turnover of Rs.1146.62 crore last fiscal as against Rs.796.04 crore the previous year.

UBL in a release here said that the volume growth during the year was 24.7 per cent. The previously reported volume trends have continued with the industry growing at a record level during the last 12 months of 29.5 per cent. Its Strong beer sales grew at 34.6 per cent, while mild beer at just under 20 per cent.

The Indian beer market was the fastest growing beer market in the world. The size of industry was at around 11 million hecta litres.

Kingfisher Strong continued to be the fastest growing beer in India, as well as the number one top selling beer brand. The brand had posted full year growth of 45.6 per cent, reaching a record sales volume of 26 m cases.

Kingfisher premium continues to be the top selling mild beer brand and set a new sales volume of 23.5 m cases. The Kingfisher brand continues to command a 35 per cent market share with one in every three beers drunk in India today being a Kingfisher.

UBL continued to retain it's market leadership position, ahead of all competitors and looked to further consolidate market shares with commencement of brewing at its two greenfield sites.

The release said the fourth quarter had been a very demanding period for the company as it faced a debilitating regulatory issue in Andhra Pradesh, resulting in the loss of production, and consequent sales for around six weeks at our Hyderabad brewery. The issue had now been addressed and the site had resumed operations.

UNI