Lower taxes, opening of channels to aid volume recovery at United Breweries

After two quarters of muted volume growth, United Breweries (UB) is expected to witness a recovery in sales in the December quarter of financial year 2020-21 (Q3FY21). In addition to opening up of trade channels, roll back of Covid-19 taxes by several states, price hike in some markets and cost cuts are expected to help the company improve its volumes and profitability. Says Ashit Desai of Emkay Research, “UB’s Q3 performance should see a marked improvement in comparison with the first half of FY21 (H1FY21) with sales and operating profit recovering to about 90 per cent of th.....

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