United Breweries shares fall 4% as firm suspends beer supply to Telangana Beverages Corp

United Breweries shares fall 4% as firm suspends beer supply to Telangana Beverages Corp

Shares of United Breweries declined 4% on January 8 after the company announced that it is suspending the supply of its beer to Telangana Beverages Corporation Limited (TGBCL) with immediate effect.

The maker of Kingfisher beer said it took this decision because TGBCL has not revised the basic price of its beer since 2019-2020, resulting in huge losses for the company. In a stock exchange filing, United Breweries added that there are significant overdues that TGBCL hasn’t yet paid for the past supply of its beer.

TGBCL is a public sector company owned by the government of Telangana, which has a monopoly over wholesale and retail vending of alcohol in Telangana.

On January 8, United Breweries shares hit an intraday low of Rs 1,988 apiece, suggesting a fall of 4% from their previous closing price of Rs 2,074. The shares are currently around 10% lower than their 52-week-high record of Rs 2,202.

United Breweries reported a 23% year-over-year rise in net profit to Rs 132 crore in the second quarter (July-September) of the current financial year (FY25). Its EBITDA rose 21% to Rs 237 crore, while net sales grew 12% to Rs 2,115 crore in the quarter year-over-year. The firm is yet to release its earnings results for the third quarter (October-December).Defence Minister Rajnath Singh highlights strengthening India-Maldives bilateral ties

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