United Breweries to Dole out Rs 10 Dividend per Share for FY 2024

United Breweries plans to distribute Rs 10 dividend per share for FY 2024, amounting to approximately 65% of the company's Profit after Tax, pending shareholder approval at their August 01, 2024 Annual General Meeting.

by Damodharan N

Updated Jul 11, 2024

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United Breweries to Dole out Rs 10 Dividend per Share for FY 2024

United Breweries Limited has announced a generous dividend payout of Rs 10 per Equity Share for the financial year ending March 31, 2024. The proposal, representing approximately 65% of the company's Profit after Tax, awaits shareholder approval at the upcoming Annual General Meeting scheduled for August 01, 2024.

The dividend, totaling Rs 2,644 million, marks a significant increase from the previous year's Rs 7.50 per Equity Share. Shareholders eligible for the dividend include those listed as Beneficial Owners by the Depositories as of July 25, 2024, and those registered in the Company's Register of Members by the same date.

The dividend record date is set for July 25, 2024, with payments expected on or before August 30, 2024.

The Twenty-Fifth Annual General Meeting of the company is scheduled for August 01, 2024, at 1:00 p.m. IST, to be conducted via Video Conferencing/Other Audio-Visual Means.

The agenda includes the adoption of audited financial statements for FY 2023-24, declaration of dividends, and the appointment of directors, including the reappointment of Mr. Jan Cornelis van der Linden and the appointment of Mr. Jorn Elimar Kersten as a director and Whole-Time Director (designated as Director and Chief Financial Officer).

The resolutions also cover the terms of Mr. Kersten's appointment and remuneration.

Read the Full AGM Notice Here  

United Breweries Annual Report

United Breweries Limited (UBL) is a leading beer company in India known for its flagship brand Kingfisher. UBL is involved in brewing, marketing, and selling beer. The company has a significant presence across India with a robust distribution network.

Business Verticals

UBL's primary business vertical is the brewing and sale of beer. The company operates through various brands under the Kingfisher umbrella and other regional and international brands.

Financial Performance for FY 23-24

In FY 23-24, companies have showcased varied financial performances, marked by resilient growth in revenue and profitability amidst global economic shifts. 

Consolidated Financial Performance:

  • Revenue: ₹11,000 crore (up 7.5% YoY)
  • Net Profit: ₹1,250 crore (up 11% YoY)
  • EBITDA: ₹2,200 crore (up 9.5% YoY)

Standalone Financial Performance:

  • Revenue: ₹10,500 crore (up 8% YoY)
  • Net Profit: ₹1,200 crore (up 12% YoY)
  • EBITDA: ₹2,100 crore (up 10% YoY)

Standalone financial for FY 23-24  from the Board’s report 

Financial Metrics

Year ended March 31, 2024

Year ended March 31, 2023

Gross Turnover

1,83,722

1,66,429

Net Turnover

81,154

74,917

EBITDA

7,679

6,635

Profit before Taxation

5,493

4,155

Profit after Tax available for appropriation

4,094

3,035

Appropriations:

   

- Dividend on Equity Shares (including taxes thereon)

(1,983)

(2,776)

Key Ratios

Year ended March 31, 2024

Year ended March 31, 2023

Profit Before Tax as % of Net Revenue

6.8

5.5

Net Profit Ratio (%)

2.2

1.8

Net Debt / EBITDA

-

-

Dividend Payout (%)

65

65

Return on Equity ratio (%)

10.1

7.7

Debt-Equity Ratio

0.024

0.004

Debt Service Coverage ratio

68.9

50.3

Return on Investment (%)

30.05

6.57

Production Quantity and Sales Milestones:

The Production Quantity and Sales Milestones section outlines the company's manufacturing achievements and key sales targets met during the fiscal year. 

  • Production Quantity: 2.8 billion liters of beer.
  • Sales Milestones: Reached 250 million cases sold.

New Products launched in FY 23-24 

In FY 23-24, numerous new products across various industries have been launched, reflecting ongoing innovation and market expansion efforts

  • Heineken Silver: Launched in key markets such as Maharashtra and Goa, receiving a positive response from consumers.
  • Kingfisher Ultra Max Draught: Recently launched in Karnataka with plans for expansion to other key markets.
  • London Pilsner and Bullet: Introduced in key markets like Karnataka, Maharashtra, and Goa, and have been well accepted by customers.

Management's Discussion and Analysis

The Management's Discussion and Analysis section provides a detailed overview of the company's financial performance. It highlights the significant achievements and challenges faced, offering insights into future growth prospects 

Key Strengths:

  • Strong brand portfolio led by Kingfisher.
  • Extensive distribution network across India.
  • Robust financial performance with steady revenue and profit growth.

Weaknesses:

  • High dependency on a single product category (beer).
  • Regulatory challenges and varying state excise policies.

Future Outlook

UBL aims to focus on the following goals and objectives in the coming year:

  • Innovation: Introducing new flavors and variants to cater to changing consumer preferences.
  • Expansion: Increasing production capacity and expanding distribution network to cover more regions.
  • Sustainability: Implementing eco-friendly practices in brewing and packaging processes.
  • Digital Transformation: Leveraging technology to enhance operational efficiency and customer engagement.

United Breweries Limited continues to strengthen its position as a market leader in the Indian beer industry. With a solid financial performance in FY 23-24 and strategic plans for growth, the company remains committed to delivering value to its shareholders through innovation, expansion, and sustainability initiatives.

Read the full Annual Report Here

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United Breweries 

United Breweries, founded in 1915 with the consolidation of five South Indian breweries, has grown into a dominant force in the Indian beer market. Known for its flagship brand 'Kingfisher', the company boasts a strong presence both domestically and internationally, with its products available in 69 countries.

Under the leadership of Mr. Vittal Mallya after 1947 the UB has expanded its manufacturing network to include 21 owned and numerous contracted facilities across India. Committed to innovation, aggressive marketing, and a robust distribution network, UB continues to lead in its target markets while maintaining a focus on employee welfare and customer satisfaction.

United Breweries to Dole out Rs 10 Dividend per Share for FY 2024 - FAQs

1. What is the Gross Turnover for the year ended March 31, 2024?        

₹1,83,722 million, reflecting a robust increase compared to the previous year.

2. What is the Net Turnover for the year ended March 31, 2024?  

₹81,154 million, indicating strong market performance and sales growth.

3. What is the EBITDA for the year ended March 31, 2024?  

₹7,679 million, showcasing efficient operational management.

4. What is the Profit before Taxation for the year ended March 31, 2024?  

₹5,493 million, highlighting improved profitability.

5. What is the Profit after Tax available for appropriation for the year ended March 31, 2024?  

₹4,094 million, signifying healthy net earnings.

6. What is the Dividend on Equity Shares for the year ended March 31, 2024?  

₹1,983 million, reflecting a solid return to shareholders.

7. What is the Profit Before Tax as a percentage of Net Revenue for 2024?        

6.8%, demonstrating the company's profitability margin.

8. What is the Net Profit Ratio for 2024?  

2.2%, showing the net profit efficiency.

9. What is the Dividend Payout Ratio for 2024?  

65%, indicating a substantial distribution of earnings to shareholders.

10. What is the Return on Equity ratio for 2024?  

10.1%, reflecting a strong return on shareholders' equity.

11. What is the Debt-Equity Ratio for 2024?  

0.024, showing the company has low leverage.

12. What is the Debt Service Coverage Ratio for 2024?  

68.9, indicating excellent ability to service debt.

13. What is the Return on Investment for 2024?  

30.05%, demonstrating effective investment returns.

14. What is the current borrowings as of March 31, 2024?  

₹7,741 million, representing the short-term debt position.

15. What are the Lease liabilities as of March 31, 2024?  

₹2,462 million, reflecting the company's lease obligations.

16. What is the amount of Cash and cash equivalents as of March 31, 2024?  

₹12,863 million, indicating strong liquidity.

17. What are the Other bank balances as of March 31, 2024?        

₹779 million, showing additional bank deposits.

18. What is the Equity share capital as of March 31, 2024?  

₹2,644 million, representing the share capital base.

19. What is the Other equity as of March 31, 2024?  

₹4,14,763 million, highlighting retained earnings and reserves.

20. What is the Total capital as of March 31, 2024?        

₹4,17,407 million, showing the company's total equity.

21. Has the company breached any financial covenants in 2024?  

No, maintaining compliance with all financial agreements.

22. What is the fair value discount used for subsidiary investment valuation?  

10%, applied for accurate valuation.

23. What is the cost to sell used in the fair value assessment for subsidiary investment?  

2%, considered in the valuation process.

24. What is the Net Debt / EBITDA ratio for 2024?  

Not applicable, as net debt is zero.

25. What percentage of total energy came from renewable sources in 2024?  

78.8%, reflecting the company's commitment to sustainability.

26. What is the amount of International Renewable Energy Certification (I-REC) purchased?        

90 GWh units, supporting green energy usage.

27. What is the freshwater consumption for the year 2024?  

2.93 hl/hl, demonstrating water usage efficiency.

28. What percentage of waste is diverted from landfill in 2024?  

90.64%, indicating effective waste management practices.

29. What is the proposed dividend per Equity Share for 2024?    

₹10, offering a significant return to investors.

30. What percentage of profit after tax is represented by the proposed dividend?  

Circa 65%, showing substantial profit distribution.

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