United Breweries to Dole out Rs 10 Dividend per Share for FY 2024

United Breweries Limited has announced a generous dividend payout of Rs 10 per Equity Share for the financial year ending March 31, 2024. The proposal, representing approximately 65% of the company's Profit after Tax, awaits shareholder approval at the upcoming Annual General Meeting scheduled for August 01, 2024.

The dividend, totaling Rs 2,644 million, marks a significant increase from the previous year's Rs 7.50 per Equity Share. Shareholders eligible for the dividend include those listed as Beneficial Owners by the Depositories as of July 25, 2024, and those registered in the Company's Register of Members by the same date.

The dividend record date is set for July 25, 2024, with payments expected on or before August 30, 2024.

The Twenty-Fifth Annual General Meeting of the company is scheduled for August 01, 2024, at 1:00 p.m. IST, to be conducted via Video Conferencing/Other Audio-Visual Means.

The agenda includes the adoption of audited financial statements for FY 2023-24, declaration of dividends, and the appointment of directors, including the reappointment of Mr. Jan Cornelis van der Linden and the appointment of Mr. Jorn Elimar Kersten as a director and Whole-Time Director (designated as Director and Chief Financial Officer).

The resolutions also cover the terms of Mr. Kersten's appointment and remuneration.

Read the Full AGM Notice Here  

United Breweries Annual Report

United Breweries Limited (UBL) is a leading beer company in India known for its flagship brand Kingfisher. UBL is involved in brewing, marketing, and selling beer. The company has a significant presence across India with a robust distribution network.

Business Verticals

UBL's primary business vertical is the brewing and sale of beer. The company operates through various brands under the Kingfisher umbrella and other regional and international brands.

Financial Performance for FY 23-24

In FY 23-24, companies have showcased varied financial performances, marked by resilient growth in revenue and profitability amidst global economic shifts. 

Consolidated Financial Performance:

• Revenue: ₹11,000 crore (up 7.5% YoY)
• Net Profit: ₹1,250 crore (up 11% YoY)
• EBITDA: ₹2,200 crore (up 9.5% YoY)

Standalone Financial Performance:

• Revenue: ₹10,500 crore (up 8% YoY)
• Net Profit: ₹1,200 crore (up 12% YoY)
• EBITDA: ₹2,100 crore (up 10% YoY)

Standalone financial for FY 23-24  from the Board’s report 

Production Quantity and Sales Milestones:

The Production Quantity and Sales Milestones section outlines the company's manufacturing achievements and key sales targets met during the fiscal year. 

• Production Quantity: 2.8 billion liters of beer.
• Sales Milestones: Reached 250 million cases sold.

New Products launched in FY 23-24 

In FY 23-24, numerous new products across various industries have been launched, reflecting ongoing innovation and market expansion efforts

• Heineken Silver: Launched in key markets such as Maharashtra and Goa, receiving a positive response from consumers.
• Kingfisher Ultra Max Draught: Recently launched in Karnataka with plans for expansion to other key markets.
• London Pilsner and Bullet: Introduced in key markets like Karnataka, Maharashtra, and Goa, and have been well accepted by customers.

Management's Discussion and Analysis

The Management's Discussion and Analysis section provides a detailed overview of the company's financial performance. It highlights the significant achievements and challenges faced, offering insights into future growth prospects 

Key Strengths:

• Strong brand portfolio led by Kingfisher.
• Extensive distribution network across India.
• Robust financial performance with steady revenue and profit growth.

Weaknesses:

• High dependency on a single product category (beer).
• Regulatory challenges and varying state excise policies.

Future Outlook

UBL aims to focus on the following goals and objectives in the coming year:

• Innovation: Introducing new flavors and variants to cater to changing consumer preferences.
• Expansion: Increasing production capacity and expanding distribution network to cover more regions.
• Sustainability: Implementing eco-friendly practices in brewing and packaging processes.
• Digital Transformation: Leveraging technology to enhance operational efficiency and customer engagement.

United Breweries Limited continues to strengthen its position as a market leader in the Indian beer industry. With a solid financial performance in FY 23-24 and strategic plans for growth, the company remains committed to delivering value to its shareholders through innovation, expansion, and sustainability initiatives.

Read the full Annual Report Here

United Breweries 

United Breweries, founded in 1915 with the consolidation of five South Indian breweries, has grown into a dominant force in the Indian beer market. Known for its flagship brand 'Kingfisher', the company boasts a strong presence both domestically and internationally, with its products available in 69 countries.

Under the leadership of Mr. Vittal Mallya after 1947 the UB has expanded its manufacturing network to include 21 owned and numerous contracted facilities across India. Committed to innovation, aggressive marketing, and a robust distribution network, UB continues to lead in its target markets while maintaining a focus on employee welfare and customer satisfaction.