Beer maker United Breweries Ltd on Friday reported a 96.85 per cent decline in consolidated net profit at ₹3.61 crore for the second quarter ended September 2020.
The company had posted a net profit of ₹114.78 crore in July-September quarter of previous fiscal, United Breweries Ltd (UBL) said in a regulatory filing.
Revenue from operations declined 37.61 per cent to ₹2,238.96 crore during the quarter under review as against ₹3,588.75 crore in the corresponding period of previous fiscal.
UBL’s total expenses fell 34.77 per cent to ₹2,265.95 crore from ₹3,474.21 crore in the year-ago quarter.
Revenue from beer segment was down 37.70 per cent to ₹2,232.40 crore from ₹3,583.36 crore a year ago, while that from non-alcoholic beverages rose 21.70 per cent to ₹6.56 crore from ₹5.39 crore in the corresponding quarter of last year.
The company said it recorded “significant sequential volume growth” during the quarter.
“Q2 witnessed a resumption of supplies in all markets in a phased manner based on the state-wise lifting of lockdown. In September, “on trade” opened for the first time in a number of states since the commencement of lockdown,” UBL said in a post-earnings statement.
The company has continued its efforts on cost control and focus on working capital management to ensure sufficient liquidity, it added.
{{/usCountry}}The company has continued its efforts on cost control and focus on working capital management to ensure sufficient liquidity, it added.
{{/usCountry}}“While the volatile trajectory of the pandemic results in considerable uncertainty on consumer demand, the progressive monthly recovery observed so far is encouraging. UBL is well-positioned to navigate the current circumstances, with leading market position, strong brand portfolio and robust balance sheet,” it added.
Shares of UBL on Friday closed 0.30 per cent lower at ₹950.60 on the BSE.