United Breweries, the manufacturer of Kingfisher beer, has reported a significant decline in net profit for the Q4 that ended on March 31, 2023. The company’s net profit for the quarter was Rs 9.7 crore, marking a YoY drop of 94.1 percent from Rs 163 crore in the same quarter last year. This fall in profit is attributed to inflationary pressures. Despite this decline, United Breweries’ revenue from operations rose by 16.6 percent YoY to Rs 5,296 crore during the quarter compared to Rs 4,541 crore in the same period last year. However, with inflation leading to a rise in expenses, it resulted in lower profits.
United Breweries holds over half of India’s beer market share and has encountered multiple obstacles over recent quarters such as COVID-19 pandemic and an increase in input costs due to inflation. The management of United Breweries stated that they are closely monitoring the situation and taking measures to manage their costs while exploring opportunities for business expansion and operational efficiency improvement.
Despite facing economic challenges at present times, United Breweries remains optimistic about its future due to its strong brand reputation and loyal customer base which will help them sustain growth even amidst challenging times.