UNITED BREWERIES 2017-18 Annual Report Analysis

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UNITED BREWERIES 2017-18 Annual Report Analysis
Fri, 21 Dec

UNITED BREWERIES has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

UNITED BREWERIES Income Statement Analysis

  • Operating income during the year rose 18.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 40.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY18 as against 13.6% in FY17.
  • Depreciation charges decreased by 9.5% and finance costs decreased by 18.8% YoY, respectively.
  • Other income declined by 74.6% YoY.
  • Net profit for the year grew by 71.6% YoY.
  • Net profit margins during the year grew from 4.8% in FY17 to 7.0% in FY18.

UNITED BREWERIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 47,292 56,190 18.8%
Other income Rs m 517 131 -74.6%
Total Revenues Rs m 47,809 56,322 17.8%
Gross profit Rs m 6,421 9,020 40.5%
Depreciation Rs m 2,871 2,597 -9.5%
Interest Rs m 587 477 -18.8%
Profit before tax Rs m 3,481 6,078 74.6%
Tax Rs m 1,182 2,132 80.3%
Profit after tax Rs m 2,299 3,946 71.6%
Gross profit margin % 13.6 16.1
Effective tax rate % 34.0 35.1
Net profit margin % 4.8 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED BREWERIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 18 billion as compared to Rs 19 billion in FY17, thereby witnessing an decrease of -5.6%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY17, a growth of 11.4%.
  • Current assets rose 12% and stood at Rs 26 billion, while fixed assets fell 5% and stood at Rs 18 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 47 billion as against Rs 45 billion during FY17, thereby witnessing a growth of 5%.

UNITED BREWERIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 23,342 26,903 15.3
 
Current Liabilities Rs m 19,030 17,970 -5.6
Long-term Debt Rs m 1,840 2,050 11.4
Total Liabilities Rs m 44,787 47,234 5.5
 
Current assets Rs m 23,653 26,405 11.6
Fixed Assets Rs m 18,633 17,779 -4.6
Total Assets Rs m 44,787 47,234 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



UNITED BREWERIES Cash Flow Statement Analysis

  • UNITED BREWERIES's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion, an improvement of 3.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 27 million from the Rs 93 million net cash flows seen during FY17.

UNITED BREWERIES Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 5,441 5,633 3.5%
Cash Flow from Investing Activities Rs m -2,336 -1,970 -
Cash Flow from Financing Activities Rs m -3,012 -3,635 -
Net Cash Flow Rs m 93 27 -70.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for UNITED BREWERIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.9, an improvement from the EPS of Rs 8.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,362.8, stands at 68.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 4.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 55.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 178.9 212.5
TTM Earnings per share Rs 8.7 14.9
Diluted earnings per share Rs 8.7 14.9
Price to Cash Flow x 69.7 55.1
TTM P/E ratio x 68.8 68.8
Price / Book Value ratio x 9.4 9.6
Market Cap Rs m 360,338 360,338
Dividends per share (Unadj.) Rs 1.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for UNITED BREWERIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.2x during FY17. 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 13.8x during FY18, from 6.9x during FY17. 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 14.7% during FY18, from 9.9% during FY18. 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 22.6% during FY18, from 16.2% during FY17. 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 9.4% during FY18, from 6.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.2 1.5
Debtors’ Days Days 100 97
Interest coverage x 6.9 13.8
Debt to equity ratio x 0.1 0.1
Return on assets % 6.4 9.4
Return on equity % 9.9 14.7
Return on capital employed % 16.2 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 1,063.9 to Rs 1,362.8, registering a gain of Rs 299.0 or around 28.1%.

Overall, the S&P BSE SENSEX is up 7.6% over the year.

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

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Related Views on News

UNITED BREWERIES Announces Quarterly Results (2QFY20); Net Profit Down 29.7% (Quarterly Result Update)

Nov 14, 2019 | Updated on Nov 14, 2019

For the quarter ended September 2019, UNITED BREWERIES has posted a net profit of Rs 1 bn (down 29.7% YoY). Sales on the other hand came in at Rs 36 bn (up 7.7% YoY). Read on for a complete analysis of UNITED BREWERIES's quarterly results.

UNITED BREWERIES 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of UNITED BREWERIES for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of UNITED BREWERIES. Also includes updates on the valuation of UNITED BREWERIES.

UNITED BREWERIES Announces Quarterly Results (1QFY20); Net Profit Down 25.9% (Quarterly Result Update)

Aug 27, 2019 | Updated on Aug 27, 2019

For the quarter ended June 2019, UNITED BREWERIES has posted a net profit of Rs 2 bn (down 25.9% YoY). Sales on the other hand came in at Rs 47 bn (up 13.2% YoY). Read on for a complete analysis of UNITED BREWERIES's quarterly results.

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