In Q4FY18, UBL reported a standalone net profit of Rs 909 million against Rs 67 million in the corresponding quarter of previous fiscal. The company recorded a volume growth of 24% compared with industry growth of 22%.
“This growth was partly the result of a low comparative, as Q4 2016-17 already included the effects of the highway ban. Net revenue grew 32%, primarily due to volume growth and also a favourable state mix,” UBL said in a press release.
For the financial year 2017-18 (FY18), the beer industry grew by about 7% with UBL delivering 10% volume growth. This was the first double-digit volume growth since FY 2010-11 and resulted in market share gains.
For FY2018-19, in the absence of any large regulatory market disruptions, UBL expects continued mid-single digit industry volume growth. In order to meet consumer demand, the company is planning to increase its capital expenditure towards capacity expansion by about 50%, from the current capital investment level of approximately Rs 2,000 million, it added.
United Spirits too rallied 7% to Rs 3,337 on the BSE in early morning trade after the company reported a standalone net profit Rs 2,110 million in Q4FY18 against a net loss of Rs 1,042 million in the same quarter last fiscal.
Meanwhile, total 9 liquor companies so far announced their Q4FY18 results have reported a combined net profit of Rs 3,856 million against an aggregate net loss of Rs 808 million in previous year quarter.