United Breweries Experiences Consolidated Net Loss of Rs 1.81 Crore in Q4

Alcoholic beverage maker United Breweries Ltd on Thursday stated  that it suffered a consolidated net loss of Rs 1.81 crore in the third quarter of the fiscal year ending December 31, 2022.

The loss was due to the impairment of assets in the states of Tamil Nadu and Andhra Pradesh, along with increased expenses.

In comparison, the company had recorded a consolidated net profit of Rs 91.02 crore in the same quarter of the previous fiscal year, according to a filing with regulatory authorities.

During the quarter that was being analyzed, the consolidated total income was recorded at Rs 3,713.54 crore, compared to the previous year's figure of Rs 3,517.98 crore, the company stated.

According to the company, the total expenses for the quarter were higher at Rs 3,675.28 crore as compared to the previous year's expenses of Rs 3,394.4 crore during the same quarter.

The company reported that it experienced ongoing inflationary pressures on its costs, particularly in the prices of barley and packaging materials.

During the quarter, it faced an exceptional expense of Rs 33.12 crore, which was recorded as impairment on property, plant and equipment in Tamil Nadu and Andhra Pradesh.

According to UBL, the change in operating models in Tamil Nadu and Andhra Pradesh led to lower cash inflows and reduced revenue, causing a decline in the company's financial performance.

UBL also stated that this change resulted in a review of the impairment across property, plant and equipment of the breweries in Tamil Nadu and Andhra Pradesh.

Brand's inflationary pressure on costs is expected to persist in the near future, and the company intends to take appropriate measures to minimize its impact as much as feasible.