United Breweries: Q2 sales dip, premium volumes up despite challenges

United Breweries Limited reported a 3% decline in net sales for Q2 2025, driven by a 3.4% total volume decrease and negative state- and source-mix, even with mid-single digit price-mix increases. Year-to-date net sales growth reached 7%. The gross profit margin for Q2 was 42.8%, a 104 basis points decrease year-on-year, influenced by the negative mix.

The company's EBIT declined by 55% in Q2, attributed to negative operating leverage from volume decline and a 22% increase in brand investments. Despite these challenges, premium volume grew by 17% in Q2, contributing to a 33% half-year growth rate within this segment.

Investments in capital expenditure during the quarter amounted to Rs. 293 Cr, a significant increase of Rs. 242 Cr year-on-year. This was primarily directed towards a new greenfield project in Uttar Pradesh and commercial growth initiatives. The company continues its network optimization and productivity programs, including the closure of its Mangalore unit earlier this year.