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 and finance costs decreased by 9.5% YoY and 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
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
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
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 1,386.0, stands at 80.7 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 56.0 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 | 70.9 | 56.0 |
| TTM P/E ratio | x | 80.7 | 80.7 |
| Price / Book Value ratio | x | 9.4 | 9.6 |
| Market Cap | Rs m | 366,472 | 366,472 |
| Dividends per share (Unadj.) | Rs | 1.2 | 2.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for UNITED BREWERIES
Solvency Ratios
Profitability 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.
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
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 817.6 to Rs 1,386.0, registering a gain of Rs 568.5 or around 69.5%.
Overall, the S&P BSE SENSEX is up 22.3% over the year.
This article was originally published in English at www.equitymaster.com
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