UNITED BREWERIES 2018-19 Annual Report Analysis
Mon, 16 Sep

UNITED BREWERIES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

UNITED BREWERIES Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY19 as against 16.0% in FY18.
  • Depreciation charges increased by 0.1% and finance costs decreased by 34.5% YoY, respectively.
  • Other income grew by 144.2% YoY.
  • Net profit for the year grew by 42.8% YoY.
  • Net profit margins during the year grew from 7.0% in FY18 to 8.7% in FY19.

UNITED BREWERIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 56,287 64,724 15.0%
Other income Rs m 130 317 144.2%
Total Revenues Rs m 56,417 65,041 15.3%
Gross profit Rs m 9,012 11,378 26.3%
Depreciation Rs m 2,597 2,598 0.1%
Interest Rs m 477 312 -34.5%
Profit before tax Rs m 6,068 8,785 44.8%
Tax Rs m 2,128 3,157 48.3%
Profit after tax Rs m 3,940 5,628 42.8%
Gross profit margin % 16.0 17.6
Effective tax rate % 35.1 35.9
Net profit margin % 7.0 8.7
* 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 FY19 stood at Rs 21 billion as compared to Rs 18 billion in FY18, thereby witnessing an increase of 16.8%.
  • Long-term debt down at Rs 754 million as compared to Rs 2 billion during FY18, a fall of 63.2%.
  • Current assets rose 14% and stood at Rs 30 billion, while fixed assets rose 9% and stood at Rs 19 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 54 billion as against Rs 47 billion during FY18, thereby witnessing a growth of 14%.

UNITED BREWERIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 26,885 31,819 18.4
 
Current Liabilities Rs m 17,973 20,986 16.8
Long-term Debt Rs m 2,050 754 -63.2
Total Liabilities Rs m 47,191 53,786 14.0
 
Current assets Rs m 26,361 29,997 13.8
Fixed Assets Rs m 17,773 19,421 9.3
Total Assets Rs m 47,191 53,786 14.0
* 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 FY19 stood at Rs 6 billion, an improvement of 14.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion, an improvement of 119.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 48% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 247 million from the Rs 27 million net cash flows seen during FY18.

UNITED BREWERIES Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 5,620 6,444 14.7%
Cash Flow from Investing Activities Rs m -1,959 -4,297 -
Cash Flow from Financing Activities Rs m -3,634 -1,900 -
Net Cash Flow Rs m 27 247 831.3%
* 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 21.3, an improvement from the EPS of Rs 14.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,272.8, stands at 66.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.1 times, while the price to sales ratio stands at 5.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 40.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 212.9 244.8
TTM Earnings per share Rs 14.9 21.3
Diluted earnings per share Rs 14.9 21.3
Price to Cash Flow x 51.5 40.9
TTM P/E ratio x 66.6 66.6
Price / Book Value ratio x 9.6 10.1
Market Cap Rs m 336,528 336,528
Dividends per share (Unadj.) Rs 2.0 2.5
* 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 deteriorated and stood at 1.4x during FY19, from 1.5x during FY18. 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 improved and stood at 29.2x during FY19, from 13.7x during FY18. 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 17.7% during FY19, from 14.7% during FY19. 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 27.9% during FY19, from 22.6% during FY18. 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 11.0% during FY19, from 9.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.5 1.4
Debtors’ Days Days 972 85
Interest coverage x 13.7 29.2
Debt to equity ratio x 0.1 0.0
Return on assets % 9.4 11.0
Return on equity % 14.7 17.7
Return on capital employed % 22.6 27.9
* 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 down from Rs 1,316.1 to Rs 1,272.8, registering a loss of Rs 43.3 or around 3.3%.

Overall, the S&P BSE SENSEX is down 2.5% over the year.

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