UNITED BREWERIES 2023-24 Annual Report Analysis

Thu, 11 Jul

UNITED BREWERIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

UNITED BREWERIES Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.4% YoY during the fiscal. Operating profit margins witnessed a growth and down at 32.6% in FY24 as against 35.3% in FY23.
• Depreciation charges increased by 0.6% and finance costs increased by 48.5% YoY, respectively.
• Other income grew by 49.2% YoY.
• Net profit for the year grew by 34.8% YoY.
• Net profit margins during the year declined from 18.5% in FY23 to 19.3% in FY24.

UNITED BREWERIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	-16,513	-21,342	NA
Other income	Rs m	494	737	49.2%
Total Revenues	Rs m	-16,018	-20,604	NA
Gross profit	Rs m	5,831	6,962	19.4%
Depreciation	Rs m	2,106	2,119	0.6%
Interest	Rs m	46	69	48.5%
Profit before tax	Rs m	4,173	5,511	32.1%
Tax	Rs m	1,126	1,403	24.5%
Profit after tax	Rs m	3,047	4,109	34.8%
Gross profit margin	%	-35.3	-32.6
Effective tax rate	%	27.0	25.5
Net profit margin	%	-18.5	-19.3

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UNITED BREWERIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 23 billion in FY23, thereby witnessing an increase of 24.2%.
• Current assets rose 20% and stood at Rs 44 billion, while fixed assets rose 2% and stood at Rs 27 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 71 billion as against Rs 64 billion during FY23, thereby witnessing a growth of 12%.

UNITED BREWERIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	39,649	41,783	5.4
Current Liabilities	Rs m	22,775	28,291	24.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	63,557	71,492	12.5
Current assets	Rs m	36,816	44,105	19.8
Fixed Assets	Rs m	26,693	27,338	2.4
Total Assets	Rs m	63,557	71,492	12.5

UNITED BREWERIES Cash Flow Statement Analysis

• UNITED BREWERIES's cash flow from operating activities (CFO) during FY24 stood at Rs 695 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 22.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs -5 billion net cash flows seen during FY23.

UNITED BREWERIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-1,196	695	-
Cash Flow from Investing Activities	Rs m	-1,208	-1,478	-
Cash Flow from Financing Activities	Rs m	-2,923	-1,224	-
Net Cash Flow	Rs m	-5,327	-2,007	-

Current Valuations for UNITED BREWERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.5, an improvement from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,051.0, stands at 132.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.0 times, while the price to sales ratio stands at -25.4 times.
• The company's price to cash flow (P/CF) ratio stood at 69.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	-62.5	-80.7
TTM Earnings per share	Rs	11.5	15.5
Diluted earnings per share	Rs	11.5	15.5
Price to Cash Flow	x	73.1	69.1
TTM P/E ratio	x	123.7	132.0
Price / Book Value ratio	x	10.7	10.3
Market Cap	Rs m	423,511	430,418
Dividends per share (Unadj.)	Rs	7.5	10.0

Ratio Analysis for UNITED BREWERIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 81.0x during FY24, from 90.9x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 9.8% during FY24, from 7.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 13.4% during FY24, from 10.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 5.8% during FY24, from 4.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	-3,111	-3,957
Interest coverage	x	90.9	81.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.9	5.8
Return on equity	%	7.7	9.8
Return on capital employed	%	10.6	13.4

To see how UNITED BREWERIES has performed over the last 5 years, please visit here.

UNITED BREWERIES Share Price Performance

Over the last one year, UNITED BREWERIES share price has moved up from Rs 1,482.9 to Rs 2,051.0, registering a gain of Rs 568.1 or around 38.3%.

Overall, the S&P BSE SENSEX is up 22.1% over the year.

(To know more, check out historical annual results for UNITED BREWERIES and quarterly results for UNITED BREWERIES)