The ongoing Middle East conflict has disproportionately impacted the Indian beer industry, including heightened supply chain disruptions, inflationary pressures and reduction in profitable export volumes, the company said.
This is leading to a significant cost increase in the raw and packaging material costs, transport and other operating costs. That, coupled with the sustained competitive intensity, is expected to have an impact on the ensuing quarters, it said.
“We have initiated various mitigating actions on pricing (with multiple State Governments) and operating cost optimization. We will further accelerate the structural interventions on productivity, cost efficiency, and continue our engagement with the regulators,” United Breweries said.
Despite these headwinds and short-term volatility, we remain optimistic about the long-term growth prospects of the beer category in India. We believe that our manufacturing network, organizational capabilities and strategic investments continue to position us favorably for the future, the company which owns brands like Kingfisher and Heineken, said.
The company said in the fourth quarter its volume increased 4.1 per cent driven by Andhra Pradesh, Assam & Maharashtra partially offset by decline in Rajasthan, Telangana and Orissa.
The premium segment grew by 16 per cent in the quarter.
Whilst the fourth quarter category growth is a welcome revival, the competitive intensity remains high, the company said.
United Breweries net sales declined 3 per cent in the fourth uarter, while EBIT margin was impacted by higher fixed cost among other.
On a full-year basis, for FY 2026, volumes grew 3 per cent, with premium volume growth at 21 per cent.
The company maintained its dividend at Rs 10 a share for FY2026.
