United Breweries Limited — Q4 FY26

United Breweries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=OCMlvg4MjYk Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to United Blues Limited Q4 and FI2026 earnings conference call. As a 0:11 11 seconds reminder, all participant minds will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:20 20 seconds during this conference call, please signal an operator by pressing star then zero on your touchstone form. Please 0:27 27 seconds note that this conference is being recorded. I now have the conference over to Mr. 0:33 33 seconds John Kurtstein. Thank you and over to you sir. 0:38 38 seconds Thank you very much. Good afternoon everyone. Thank you for joining us here on the quarterly results call for the Q4 0:47 47 seconds of the full year 26. Um Vivic and I are happy to host you once again. We'll take a bit more time this time around to uh 0:56 56 seconds to spend some time with the introductory remarks because we think the situation um in the market uh merits that we give 1:05 1 minute, 5 seconds a bit more context on on the results as well as the outlook. So um please bear with us while we uh while we walk you 1:12 1 minute, 12 seconds through it. And let me start there with the category because in the end the category remains the most important anchor for how we look at the business 1:20 1 minute, 20 seconds as a whole. And we're very happy that in Q4 that we saw that category returning back to growth around 10% and the 1:28 1 minute, 28 seconds majority of markets also contributing to growth which is a big step up from the second half of 2025 and is also widely 1:35 1 minute, 35 seconds supported by multiple movements including uh regulatory development uh improved affordability on the ground 1:43 1 minute, 43 seconds demand conditions. So overall we're happy that the structural drives of the category remain intact um and that we 1:50 1 minute, 50 seconds see that the beer uh category in India is actually doing really well in the quarter. Now at the same time um also 1:57 1 minute, 57 seconds important to recognize that the market has become significantly more competitive um which means that winning in the environment has an impact on 2:05 2 minutes, 5 seconds investments in high brands commercial intensity um and as a result while the category is growing the cost of 2:13 2 minutes, 13 seconds participation has gone up which is also an important context for the performance in the quarter and we'll speak more about that when we talk about how 2:22 2 minutes, 22 seconds intentional choices have impacted the quarterly delivery. Now when we look at the quarter um very important to note 2:32 2 minutes, 32 seconds that we very much believe that the fundamentals of the business remain really strong. We delivered around 4% 2:39 2 minutes, 39 seconds volume growth and I'll come back to that a little bit later on the balance between primary and secondary volume. So we see that underlying demand is strong. 2:48 2 minutes, 48 seconds We see that premium continues to outperform in consistency with our strategy and we also see that the gross 2:54 2 minutes, 54 seconds margin is moving meaningfully. So in the end we see that volume price and mix as well as our ability to transform into 3:03 3 minutes, 3 seconds margins is delivering is moving in the right direction on this volume growth versus the category growth. It's 3:10 3 minutes, 10 seconds important context to uh make sure that everybody is aware that while our volume has grown 4% our secondary volume so our 3:18 3 minutes, 18 seconds demand from the market has moved mostly in line with the category there's a slight pressure on market share but we're also cycling last year's disparity 3:26 3 minutes, 26 seconds between primary and secondary so in the end that 4% is muted versus the actual movement uh that we see in the market 3:35 3 minutes, 35 seconds now of course we see in the EBIT a decline materially in the quarter versus last year largely impacted by deliberate 3:42 3 minutes, 42 seconds choices that we had made. One very clearly investing behind our brands uh and behind maintaining our leading 3:50 3 minutes, 50 seconds position in the market in this intensified environment. We um expanded our investment behind brands with 27% 3:58 3 minutes, 58 seconds versus the previous year. Of course, the quarter is ahead of the peak season. 4:02 4 minutes, 2 seconds It's an important quarter to invest in the brand strength and we see it also reflected in the brand power scores that we get back from the market. So we're 4:10 4 minutes, 10 seconds very happy and we continue to do this in line with our strategy to really grow our brands and in advance behind both brands as well as in execution on the 4:17 4 minutes, 17 seconds ground. We're also advancing in premiumization where our premium share is ahead of the overall uh our premium development is ahead of the overall 4:26 4 minutes, 26 seconds development of of the portfolio and we continue to invest in our network strategies. A large share of the growth in Q4 came from contract manufacturing which has an impact in the accounting. 4:37 4 minutes, 37 seconds Um but we knew that so that was anticipated uh but has an impact on especially how revenue and margins are being reported. 4:47 4 minutes, 47 seconds The last thing that I want to highlight here is that we also deliberately invested into bottle infusion uh which also has to do with the um with the 4:56 4 minutes, 56 seconds environment uh more on the macroeconomic scale. We see that there's pressure on supply. We see there's tightness on supply for especially packaging material 5:05 5 minutes, 5 seconds highly impacted by the energy prices driven by what's happening in the Middle East. So we also deliberately made sure 5:12 5 minutes, 12 seconds that um our inventory and um our use of bottles and packaging materials is at par. to make sure that we first and 5:20 5 minutes, 20 seconds foremost prioritize continuity of supply. I think um and that's something that um that we also need to highlight 5:28 5 minutes, 28 seconds that uh the Middle East situation is expected to have a meaningful impact. So while we see some fairly minor impact in 5:38 5 minutes, 38 seconds the quarter especially driven by this NDI piece we do see that for the outlook of the year there will be an impact for 5:45 5 minutes, 45 seconds the market uh driven mostly by energy fuel cost impacting uh the packaging cost packaging material cost there's 5:53 5 minutes, 53 seconds currency movement so the INR performance currently will have an impact on uh on cost as well as the aluminum price which 6:00 6 minutes continues to be extremely high and we don't foresee that coming down anytime soon. So the impact that we see for the remainder of the year is predominantly 6:08 6 minutes, 8 seconds cost led and not demand led. So we still believe in the strong fundamentals of the category and demand will be there but cost pressure will continue to be 6:16 6 minutes, 16 seconds there in the second half of the year. So in the end I think uh it's very clear that we're operating in a sort of a two-speed environment where one we see 6:25 6 minutes, 25 seconds strong category growth premiumization and we strongly believe that the opportunity will remain to be there and India is the growth engine for the 6:32 6 minutes, 32 seconds global beer market while we also see a rise in cost pressure both on the commercial investments as well as on the cost of production and that will remain 6:41 6 minutes, 41 seconds to be there and that's also why we highlighted that um in the uh in the press release that we did. Now what we are doing and what are the clear choices 6:49 6 minutes, 49 seconds that we're making for what's ahead of us is that first and foremost we will continue to serve the consumer. We will continue to also drive premiumization. 6:59 6 minutes, 59 seconds We will invest behind the brand and behind the category and take a role as a category leader. We will also continue to optimize our network and capacity 7:06 7 minutes, 6 seconds including um the contract brewers because we believe that is what is needed in order to be there for the growth of the Indian beer market. Of 7:15 7 minutes, 15 seconds course, we will tighten our pricing and revenue management in the current outlook. We are closely collaborating uh 7:22 7 minutes, 22 seconds with the cross functional teams to make sure that we drive pricing and that we drive the right mix decisions to make sure that we are where the consumer wants us to be also from our pricing but 7:31 7 minutes, 31 seconds where we also try to mitigate as much as we can the cost pressure in an environment which everybody knows is heavily regulated. So there it requires 7:40 7 minutes, 40 seconds additional efforts to make sure that we are able to translate some of that cost pressure into the topline pricing. 7:47 7 minutes, 47 seconds Now of course on the EBIT outlook there will be an impact. Um we are working hard to further work on productivity uh 7:54 7 minutes, 54 seconds programs to make sure that we convert the healthy gross margin also into margin that we make sure that we mitigate and anticipate the cost 8:02 8 minutes, 2 seconds pressure which is ahead of us and that's not only true for the P&L but as much for working capital and cash generation. 8:09 8 minutes, 9 seconds I think we see in the shape of our P&L that we continue to grow also when we look at our investments. Um so we're making headwinds on our investments in 8:18 8 minutes, 18 seconds our green fields as well as in investing in the stores with high expansion of our of our number of coolers which of course also impacts our depreciation. So to 8:27 8 minutes, 27 seconds appreciate with the P&L we can see that our belief in growth and in structural growth is well there and that UDL is positioned to grab the growth of the market uh at least proportionately. 8:39 8 minutes, 39 seconds So I think the current performance in the quarter uh is mostly a result of deliberate investment choices impacted 8:47 8 minutes, 47 seconds by the local environment as well as by the macroeconomic environment in which we operate. But we're confident that the category will remain resilient over time 8:56 8 minutes, 56 seconds that our strategy is still the right one and that we're taking the necessary action to make sure that we're set up for future growth as well as sustained delivery on our financials. Now before 9:05 9 minutes, 5 seconds we head to the Q&A, I happily invite Lebec to give a bit more color on these introductory remarks. 9:11 9 minutes, 11 seconds Yeah. No, John, thanks for this. I know I think all of you are joining the quarterly call, but I would say that this has been one of the quarter where 9:20 9 minutes, 20 seconds we really had to step back and think about the structural financials in the category and what's going to happen for 9:26 9 minutes, 26 seconds the year and the year to come. And uh a lot of it was driven by Middle East war uh and the impact because uh as we 9:35 9 minutes, 35 seconds mentioned that we are sitting on a 4 to 500 core impact uh you know our profitability for last year and we had to make clear choices to do that but 9:44 9 minutes, 44 seconds before that I would say a couple of things. First great news that category is back on growth. I think in the last two calls we had conversation about what 9:53 9 minutes, 53 seconds will happen to category when do you see gold back to growth. The good part is the category has come back to growth at 10%. And it has not happened by chance. 10:02 10 minutes, 2 seconds I think it is the function of I would say three things. Number one, the deliberate effort with with viewers 10:11 10 minutes, 11 seconds association of India, you know, where UBL is a key participant other than other players and UBL itself, we have 10:19 10 minutes, 19 seconds made with the regulator around the excise policies because if you actually see in the last nine out of 10 policies 10:28 10 minutes, 28 seconds which have been released, there has not been any tax increase on beer and there has been a relative tax increase on spirits. 10:36 10 minutes, 36 seconds So the number one driver of category growth is that relative pricing of spirits and beer. You know the difference between that and we have seen 10:46 10 minutes, 46 seconds that in almost 14 states 14 which is almost 42% of our business we have 10:53 10 minutes, 53 seconds actually grown more than 30% in the quarter 30 not not mixing the words there. So I think the first important 11:00 11 minutes thing is the effort on the policy front is a big driver of the category growth and I'm not even talking about Karnataka 11:08 11 minutes, 8 seconds and all which is not into implementation. 11:11 11 minutes, 11 seconds The second big one which Yan has there are deliberate investments which UBL has done which are translating into category 11:20 11 minutes, 20 seconds growth. You know there are states where the category has almost doubled. We have invested in capacities. We have invested in quality. We have invested in 11:28 11 minutes, 28 seconds innovation. We have invested in our brands. Premiumization is a great example. You know, we again we are back on 16%. And you saw that we are also 11:37 11 minutes, 37 seconds investing in future with with the work we are doing with Soule on Maltex or Crown and others on on the cans to 11:45 11 minutes, 45 seconds really see that there is a future of beer in the category. So I think the investment what we have made is is leading to the category growth. And 11:52 11 minutes, 52 seconds third the high competitive intensity because when every when lot many players are investing to get the buy in India 12:00 12 minutes consumers are hearing more about beer they are seeing more more investment retailer are seeing more investment and we know that when category investment 12:08 12 minutes, 8 seconds goes up it really has been getting growth our data suggest that some of our competitors have invested 3x 4x more but 12:16 12 minutes, 16 seconds uh you know but we we we have not increased our investment to that level but we continue to increase our brand power despite the investment which means 12:24 12 minutes, 24 seconds we are at least investing in the right things we're not buying the volumes u you know uh and deliberately uh you 12:32 12 minutes, 32 seconds know uh not diluting the category so the number one thing I want to bring to your attention we're extremely delighted that structural interventions are leading to 12:41 12 minutes, 41 seconds the category growth and if the karnataka policy comes through or what we are seeing the momentum this quarter I think 12:48 12 minutes, 48 seconds this the category growth trend will The second important thing I want to bring because some of you I I read 12:56 12 minutes, 56 seconds statements after our results I want to say that the work which UBL has done over last couple of years we don't have 13:04 13 minutes, 4 seconds a supply issue. So I want to bring it to very clear we don't have a supply issue. 13:09 13 minutes, 9 seconds We have invested a lot in the last two years in building a supplier base on bottles. Uh so we don't have a supply 13:17 13 minutes, 17 seconds issue. We also don't have a supply issue on cans you know because we have the global network and we have identified 13:24 13 minutes, 24 seconds these suppliers we don't have a supply issue so none of our results are because of supply issues and we don't expect 13:32 13 minutes, 32 seconds supply issues to happen in fact it will be a competitive advantage for UVL because we have those supply tied up or 13:39 13 minutes, 39 seconds we have worked with our suppliers on a very strategic manner we have an inflation issue we have a cost issue not supply issue so I want to just clarify 13:47 13 minutes, 47 seconds that any of the demand or the category growth momentum continues for us it will be it will not be because we could not 13:54 13 minutes, 54 seconds get the supply it would be maybe we chose not to supply because it is too it is prohibitary for us to supply but we don't have a supply issue the third 14:03 14 minutes, 3 seconds thing I would say that because we are the only listed company uh the other meaningful listed company had major 14:10 14 minutes, 10 seconds issue in MP on the beer one I think you know my understanding is the impact on beer industy industry because of the war 14:19 14 minutes, 19 seconds is disproportionate and this is a time where we had to make choices on how we want to run the 14:27 14 minutes, 27 seconds business and where we want to run the business. So for me at this point of time the key focus is consumer we need to make sure we the supplies are 14:35 14 minutes, 35 seconds available. The focus is to really have very tough conversation and transparent conversations with all our stakeholders 14:43 14 minutes, 43 seconds whether suppliers or regulators to make sure that we create the long-term value for the category. And I'm very proud that UBL is leading that effort 14:52 14 minutes, 52 seconds consistently. You know we are not watching from the behind. We are actually leading it because this is a time where the structural economics of 14:58 14 minutes, 58 seconds category has to be uh addressed. We are also working to make sure that we continuously invest in the brand and we 15:06 15 minutes, 6 seconds also very clear that we also are responsibly investing the money. There are states I won't name them where we 15:13 15 minutes, 13 seconds have seen you know uh you know there's lot of trade spend being done even where category has no money in that state in a 15:21 15 minutes, 21 seconds you know in a in a state like Telangana we have seen some of our competitors actually throwing trade spend which is which doesn't make sense it actually 15:30 15 minutes, 30 seconds doesn't encourage regulators to even think about the category long-term sustainability but we are very clear on those situations that we will follow the 15:38 15 minutes, 38 seconds right path so I do think that category growth is strong. We are in a position where our supply chain is strong. Our 15:47 15 minutes, 47 seconds localization efforts are working of premiumization. Our gross bar is up 330 basis point. We are making deliberate 15:55 15 minutes, 55 seconds choices. You know some of the choices we made this quarter is to store more use more new bottles versus old bottles so 16:02 16 minutes, 2 seconds that we can replenish new bottles faster because old bottles we can use anytime in a brewery. some of the choices we 16:09 16 minutes, 9 seconds made on making sure that we we actually clear some of the inventories because our primary is 4% but our sell through 16:17 16 minutes, 17 seconds is 8 to 9%. So I also saw some notes where they said there's a big gap between four and 10. Actually there's not a big gap between four and 10 16:24 16 minutes, 24 seconds actually. Act actually it's 9.5 and 10 in our books. And this is one of the reasons you know we had more business from our partners because we we also 16:34 16 minutes, 34 seconds corrected some of the inventories in anticipation so that we can actually have more fresh beer and and do that. 16:39 16 minutes, 39 seconds Overall our cost program is kicking on very well. Our people cost is much below our growth rate now. We have made right 16:47 16 minutes, 47 seconds uh changes in our structure. Our puzza program is doing extremely well. Our beauty expansion is on track. We already 16:54 16 minutes, 54 seconds got the land in UP that we will work as our can lines in Telangana and in in Maharashtra will be available before 17:02 17 minutes, 2 seconds July. So we have one green field, two can lines, cooler investment capex is going on. The brand power scores are 17:10 17 minutes, 10 seconds extremely high. So I think we are feeling very strong. Uh however there are big headwinds in the category and we 17:17 17 minutes, 17 seconds are not shying away from it and we are structurally working to mitigate what we can. Can we mitigate all of it? We don't 17:24 17 minutes, 24 seconds know. It depends on how much the war impact blast. As I look at today the the you know the some of the things like oil 17:33 17 minutes, 33 seconds prices uh Indian rupee gas prices I think they all going northward. So we we really 17:39 17 minutes, 39 seconds need to uh see through it but uh we wanted to bring the reality but our focus as company will remain to drive 17:47 17 minutes, 47 seconds category growth to serve the consumer and keep unlocking the potential of beer which is there and it will not impact 17:54 17 minutes, 54 seconds any of our capex plans. So with this I think I open up to any questions you have. 18:02 18 minutes, 2 seconds Thank you very much. We'll now begin with the question and answer session. 18:06 18 minutes, 6 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 18:12 18 minutes, 12 seconds If you wish to remove yourself from the question, you must press and participants are requested to use handsets while asking the question. 18:23 18 minutes, 23 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 18:30 18 minutes, 30 seconds Participants, you may press star and one to ask the question. 18:39 18 minutes, 39 seconds The first question is from the line of Amish Roy from Noama Wealth Management. Please go ahead. 18:44 18 minutes, 44 seconds Yeah, thanks. Uh uh firstly on uh the cost impact you have mentioned 400 to 18:52 18 minutes, 52 seconds 500 cr cost impact uh next uh two three quarters. So I wanted to understand the assumption. Uh I do understand glass 18:59 18 minutes, 59 seconds uses a lot of fuel and fuel costs had gone up a lot. If I see today it's down say 8% and last 3 4 days it is down 15%. 19:08 19 minutes, 8 seconds For example if uh this geopolitical issue gets resolved and say next one or two weeks crude cools down uh then does 19:17 19 minutes, 17 seconds this still uh arise that 4 400 500 core cost impact happen. So what is the assumption here and on the supply side 19:24 19 minutes, 24 seconds uh you answered uh very clearly that you have uh taken care of. Of course this time the Elino is a very favorable uh 19:32 19 minutes, 32 seconds climate for your kind of category. So are you factoring in all that and uh both on aluminium cans and the glass bottles if you can reconfirm given the 19:41 19 minutes, 41 seconds very strong demand and now Karnataka policy also positive are you absolutely sure that supply side there is no risk inflation is there so if you could 19:49 19 minutes, 49 seconds answer both these uh I think I'll I'll answer the second question and I'll ask Lon to help in the first one more detail. I think we are very sure we are 19:57 19 minutes, 57 seconds very clear you know I I think yes there is a positive momentum you talk about whether Kataka policy can be there and 20:04 20 minutes, 4 seconds all of this and we don't know what will be the final footprint of blueprint of the Kataka policy right because it is already taken couple of months for them 20:12 20 minutes, 12 seconds to come back and notify but I think from a pure scenario planning from what we need we are fine you know we we don't 20:19 20 minutes, 19 seconds have a issue and it is because over the last two years we have increased our supplier base and we and worked on this 20:26 20 minutes, 26 seconds very diligently. So we are ready for the growth. 20:31 20 minutes, 31 seconds Yeah. And on the on the cost impact, I can I can highlight a little bit more on the assumptions and and obviously I think like everyone we would applaud if 20:40 20 minutes, 40 seconds this issue will be solved within the next two weeks. Um, who knows? However, even if it does, our assumption is that 20:47 20 minutes, 47 seconds the impact on cost and for costs to normalize will take much more and it will be here uh for the next uh couple 20:56 20 minutes, 56 seconds of months um if it ever comes down. H so we do have assumptions around crude oil 21:02 21 minutes, 2 seconds where we believe that it will not be below 100 USD or not far below 100 USD 21:09 21 minutes, 9 seconds even if um if things normalize it's largely depending on um the impact of the uh the gas import in India with the 21:18 21 minutes, 18 seconds high exposure and we know that um some of the um the capex has been seriously impacted so even if the conflict is 21:26 21 minutes, 26 seconds resolved it will not come back we assume assume that the aluminum is north of $3,500. Uh we also don't expect that to 21:34 21 minutes, 34 seconds come down very quickly. So I think as much as we hope and still have faith that the conflict will resolve, the the 21:41 21 minutes, 41 seconds longerterm impact will be there. We see of course on the demand side that I mentioned in the opening um on the opening remarks that most of the impact 21:49 21 minutes, 49 seconds is costled. We think that Indian consumer and their market will be resilient. Of course, we're also closely 21:56 21 minutes, 56 seconds tracking what happens with local fuel pricing. So far, no movement yet, but as soon as that happens and consumer will see the pricing. We also have to take 22:04 22 minutes, 4 seconds into account that there might be an impact on on demand and the level of discretionary spend where we also see the notes that inflation and food inflation will go up to around 5%. 22:14 22 minutes, 14 seconds Obviously we can expect that it may have an impact but we also think that there's enough um tailwinds on the category uh 22:22 22 minutes, 22 seconds that we for now only foresee the the cost pressure on the outlook. 22:27 22 minutes, 27 seconds Sure. One followup Vive uh obviously you have worked in FMCG such a long time and all FMCG companies in this quarter call 22:34 22 minutes, 34 seconds are seeing market share gains from local pairs. I think you also highlighted that uh because you have tied up on the uh sourcing side of packaging which I think 22:44 22 minutes, 44 seconds for local players is very difficult. So are you already seeing that some of the local players or some of the maybe smaller players are already not able to 22:52 22 minutes, 52 seconds meet up on the packaging side and that is leading to opportunity and market share gain for you say in April month 22:58 22 minutes, 58 seconds actually no uh I think I don't think that uh you know probably they understand or they have done all the 23:06 23 minutes, 6 seconds impacts yet because getting into the season the volume looks good momentum looks good and for us when we give the 23:12 23 minutes, 12 seconds plan when we talk a 4 to 500 we need to look at the full year impact the rest of the year impact on what's going to happen based on seasonality 23:20 23 minutes, 20 seconds non-seasonality and other things to really come together. I also think that different players are seeing impact at different levels. You know I've 23:28 23 minutes, 28 seconds definitely seen in some of our contract viewers have stopped manufacturing their brands and say do you need more supplies because I can't source the material. So we are seeing that trend happening more 23:37 23 minutes, 37 seconds and more but I would say that not in April but I do expect in couple of months you will see that even more on that. 23:46 23 minutes, 46 seconds Understood. My last question is on 23 specific state. Uh Karnataka when the initial policy came it seemed very 23:54 23 minutes, 54 seconds positive for beer. Uh when uh the final draft came it seemed less positive but still positive. If you could tell us uh 24:01 24 minutes, 1 second what is the current understanding? I do understand lower end of beer there is better profitability. Now let us ignore the Iran crisis because that changes 24:09 24 minutes, 9 seconds picture but uh what is the current situation on the Karnataka and if you could tell us on Telangana yeah one one 24:17 24 minutes, 17 seconds last one on Telangana there have been news reports of 12 to 15% hike any update on that thank you yeah I think 24:23 24 minutes, 23 seconds first on Tanaka I think first of all politically the policy direction is very positive and I will put it into two 24:30 24 minutes, 30 seconds parts one is ease of doing business I think ease of doing business the government has already made significant progress is like you know the beauty can 24:38 24 minutes, 38 seconds dispatch 24 hours the licenses has arc increase labeling and all will be digital I think very welcome move there 24:47 24 minutes, 47 seconds which used to capture lot of un unnecessary time and energy there I think the second one is on the policy 24:54 24 minutes, 54 seconds itself now of course the final fine print we have to see but I think the direction of moving to taxation linked 25:01 25 minutes, 1 second to ABV is very positive and I think it will lead to a significant ificant growth in beer category and significant 25:09 25 minutes, 9 seconds growth in consumption of beer if if it comes through. So of course we have to wait for the final details but I would say you know wherever it nets up it will 25:17 25 minutes, 17 seconds be a net positive where it stands today on Telangana I I don't think we have got any price increase or notification or 25:25 25 minutes, 25 seconds anything like that in fact we are in a in a significant conversation there because u u there they they need they 25:33 25 minutes, 33 seconds that the government needs to understand that this is a unique situation and uh we still as an association 25:42 25 minutes, 42 seconds as a company in talks with the government there. 25:45 25 minutes, 45 seconds Thanks a lot. That's all for my Thank you. Thank you. 25:51 25 minutes, 51 seconds Participants, you may press star and one to ask the question. 25:57 25 minutes, 57 seconds Next question is from the line of Harit Kapoor from Investor Kia. Please go ahead. 26:02 26 minutes, 2 seconds Yeah, good afternoon. Uh so my first question is on uh the competitive intensity you alluded to. Uh just wanted 26:09 26 minutes, 9 seconds to get your sense on apart from say uh you know contract bottlers or very small players who uh have moved from moved uh 26:18 26 minutes, 18 seconds or have have stopped doing their own branding for a bit. uh some of the increased trade spends and those kind of 26:25 26 minutes, 25 seconds activities that you were seeing are they from the other significant players is are are you seeing a reduction in that 26:34 26 minutes, 34 seconds as well as we are moving forward like in April month have you seen that come down as well and uh you know what's your kind of thought process on that do you see 26:42 26 minutes, 42 seconds overall competitive intensity even with the other large two players kind of coming down because of what you're facing they are also facing 26:51 26 minutes, 51 seconds is look I think our business is state by state so making a overall picture is is very difficult. I can split it in two 26:58 26 minutes, 58 seconds parts. I think one is in the first quarter we saw the overall media spend on the surrogate brands on the category 27:04 27 minutes, 4 seconds vent forex right our spend it was not us who increase the spend on forex so there are there are other significant players 27:13 27 minutes, 13 seconds who are spending much more on media sponsorships and all but we have also seen trade spend increasing in certain states uh significantly and we have seen 27:22 27 minutes, 22 seconds in many places the trade spend is increasing even where there is an opportunity to buy short-term volume. So 27:29 27 minutes, 29 seconds I would say that yes we have we are seeing an increase bent by the competition. Um we haven't seen any 27:37 27 minutes, 37 seconds reduction in that intensity yet. But we are also very clear that it is extremely important for us to stay competitive 27:44 27 minutes, 44 seconds where we are but it is also important for us to make sure we are structurally working on improving the health of the category. So I think it is intensity is is high right now. 27:56 27 minutes, 56 seconds Got it. per day. Wait, the second bit was on uh on uh the uh 400 to 500 cr number that you spoke of. I wanted to 28:05 28 minutes, 5 seconds get your thought process on what in your mind could be the mitigating factors or the offset factors to this. Uh obviously 28:12 28 minutes, 12 seconds there are couple of big buckets. One is price increases in open market states. 28:17 28 minutes, 17 seconds Uh hope hope of price increases in government control states and then there is your own kind of bottom up that you can do in terms of cost. So uh uh you 28:25 28 minutes, 25 seconds know how how how many of those things are already you know in have already been actioned where we are in that kind of uh journey and uh you know uh any 28:35 28 minutes, 35 seconds thought on you know how much can be mitigated. 28:37 28 minutes, 37 seconds No I think it's a great question. I would say that you look I'm I'm extremely proud of how the team has rallied and seen this crisis and an 28:44 28 minutes, 44 seconds opportunity. I can I can safely say that at least half of this 4 to 500 28:53 28 minutes, 53 seconds uh we have firm plans to mitigate already. So whether it is our own productivity drive whether it is 29:00 29 minutes selective pricing whether it is reducing trade spend in the market which doesn't make sense for us or the the category 29:08 29 minutes, 8 seconds profitability is very low. So for example in one of the market we moved to zero trade spend you know I won't name the market for competitive reason but we 29:16 29 minutes, 16 seconds moved to zero trade spend uh so that because there was you know we didn't see that drop margin in the market to do that plus the work we are doing on 29:25 29 minutes, 25 seconds consistent improvement on our own productivity and production excellence I would say we already have firm plans of 29:33 29 minutes, 33 seconds somewhere between 200 to 250 crores which is already done dusted into execution at all Right. 29:40 29 minutes, 40 seconds We are also working on another similar ideas but you know some of them really depends on whether we get pricing in 29:47 29 minutes, 47 seconds Telana or not whether we get pricing in some of the other states or not because like Tamiladu and other states as well and we also are very aware that we don't 29:56 29 minutes, 56 seconds want to make beer unaffordable by doing all of this because we have been struggling to talk about affordability of the category and all 30:04 30 minutes, 4 seconds some of it we will have to abort uh as a shock and we also don't want to is a short 30:11 30 minutes, 11 seconds sorry to interrupt. Uh we are losing your audio slightly a bit. Sorry. 30:18 30 minutes, 18 seconds Uh sir, can I disconnect and reconnect your line please? 30:25 30 minutes, 25 seconds Participants please stay connected while we rejoin the management call. 31:47 31 minutes, 47 seconds Good morning. 32:08 32 minutes, 8 seconds Ladies and gentlemen, thank you for your patience. We have the line for the management being connected. Uh so you may go ahead Harit if you can just assist where he stopped. 32:16 32 minutes, 16 seconds Yeah, I think just just to summarize very quickly, I think on your question half of it is already we have firm plan on mitigation. 32:24 32 minutes, 24 seconds Other half we have ideas but it will it will take lot of work and also we also don't want to make it completely unaffordable for consumers right because 32:32 32 minutes, 32 seconds you cannot cover all the gap uh through this. So this is why we wanted to give very clear view of what's happening and 32:41 32 minutes, 41 seconds uh and what what are the potential impacts. 32:46 32 minutes, 46 seconds Great. Thank you for this. I'll come back in a brief. Thanks. Thank you. 32:52 32 minutes, 52 seconds Next question is from the line of Latika Chopra from JP Morgan. Please go ahead. 32:58 32 minutes, 58 seconds Yeah. Hi. Uh thank you uh for the opportunity. uh you know I just first wanted to check uh you know uh what was 33:06 33 minutes, 6 seconds the volume in milling cases that you closed FI26 with and if you could also share with us you know a rough split of 33:14 33 minutes, 14 seconds how much of these volumes came from uh contract theories I'm just trying to gauge how should one think about you 33:21 33 minutes, 21 seconds know the the growth impact on price mix uh you know as we as we forecast the growth on revenue growth forward and how 33:30 33 minutes, 30 seconds do you see this combination changing in FI27 given uh you know the supply edition plans you have put in place. 33:40 33 minutes, 40 seconds So you want to know what is the salience of our old beauties versus the contact beauties. 33:46 33 minutes, 46 seconds Yeah just trying to gauge because you know this time if you look at u you know the price mix uh uh trend declined 7% 33:54 33 minutes, 54 seconds that was quite steep during the quarter because of higher seance of contract theory. just trying to see uh you know 34:01 34 minutes, 1 second uh how are we shifting between and I I think I I think I won't give you the exact details I don't we can come back 34:09 34 minutes, 9 seconds to you separately Latika I think I would say I won't worry too much about the price mix of this quarter because I I 34:16 34 minutes, 16 seconds think we will have a healthy price mix this quarter has a combination of couple of things I think um one one which is 34:24 34 minutes, 24 seconds absolutely the sourcing mix because we took an inventory correction where uh in our own breweries which means that the 34:32 34 minutes, 32 seconds primary is much lower than actually what we supply to the corporation markets or other distributors. So that is why you 34:40 34 minutes, 40 seconds see uh our earnings are lesser because the primary is lower and that increases the salience of the the CBUS and which 34:48 34 minutes, 48 seconds is I think the deliberate correction we did to make sure we provide fresh beer and we also ready ourselves because of the war scenario on the raw materials 34:56 34 minutes, 56 seconds and bargaining materials and our contracts which were there. So I won't uh read too much into the minus 7% as a 35:04 35 minutes, 4 seconds structural thing. I think going forward our CBU contribution is around 20 to 25%, it will vary uh depending on the 35:12 35 minutes, 12 seconds month and the policy and all. We still have significant presence uh with our own breweries in the country and which 35:21 35 minutes, 21 seconds is only going to expand as well with the U up coming in next year and with the can lines coming up in by July in in two 35:28 35 minutes, 28 seconds big markets where we like in Telangana we don't have our own cans uh you know we we we bring it very small but now 35:36 35 minutes, 36 seconds we'll have a big capacity or even in Maharashtra we are going to have more capacity which we bring to from some of the other markets. So I would not worry 35:44 35 minutes, 44 seconds on that part but we'll send back some of the details you're asking. 35:48 35 minutes, 48 seconds Sure. Uh can I then ask you uh you know you close FI26 with a 3% volume growth. 35:55 35 minutes, 55 seconds Of course the year was marred by you know various issues uh you know whether on weather or on regulations. Uh but as 36:02 36 minutes, 2 seconds you look towards FI27 and assuming a a normal you know season and you clearly said supply is not an issue. uh from a 36:10 36 minutes, 10 seconds from a growth perspective uh do you think this will be the year when we can probably aim for that mid to high singledigit volume growth with probably 36:19 36 minutes, 19 seconds you know a mid-s singledigit kind of a pricing on the underlying basis uh is there some 36:27 36 minutes, 27 seconds absolutely I think absolutely I think I will be very disappointed with the effort we done which I talked in the beginning on structural levers to drive 36:35 36 minutes, 35 seconds category growth the investment we had made on on getting cold beer, the networks, the premiumization, the brands and innovation. We think this should be 36:45 36 minutes, 45 seconds a a a high singledigit category growth year. um you know our own forecast is somewhere between 6 to 7% volume growth 36:54 36 minutes, 54 seconds and it should translate to a double digit revenue growth and we already seeing that momentum in the first quarter as I said you know u 37:03 37 minutes, 3 seconds uh you know barring that some of the structural thing which we did our our scandalies were up eight 8 to 9% and our volume is up 4% and premium is up 16%. 37:14 37 minutes, 14 seconds Yeah, and that just to add that gives us confidence and of course we like I said we keep a a close pose on what's happening on the demand but we're also 37:22 37 minutes, 22 seconds confident because recycling like you mentioned these two quarters from last year where demand was absolutely muted because of adverse weather and other 37:30 37 minutes, 30 seconds elements playing their part. So knowing that will uh will in itself create a tailwind for uh for category and volume growth in the quarters to come uh post 37:39 37 minutes, 39 seconds the peak season. We're quite confident that we're on the right trajectory for this one. Yeah, I'll just add and I think uh while this will be the momentum 37:47 37 minutes, 47 seconds and the growth but I'm very clear I'm not going to hesitate to take tough calls where in the states the structural 37:55 37 minutes, 55 seconds profitability is not there because of regulators this is a time when the industry is in the crisis cost are going down we are not going to do charity here 38:04 38 minutes, 4 seconds so I am also very clear that you know if we have to take some tough calls we will take the tough calls 38:11 38 minutes, 11 seconds thank Thank you. I think I'll request you to come back for a follow-up question. 38:16 38 minutes, 16 seconds I request to all the participants kindly limit yourself to one question per participant and rejoin the queue for a followup. Next question is from the line of Mihai from JM Financial Service. 38:27 38 minutes, 27 seconds Please go ahead. Yeah. So thanks for taking my question. I just wanted to uh understand basically the gross margin uh 38:35 38 minutes, 35 seconds expansion that has happened given that you know the realizations were also down uh and you had an infusion of new 38:43 38 minutes, 43 seconds bottles also. So this uh gross margin expansion that has happened uh I mean is it purely uh you know state mix or I 38:51 38 minutes, 51 seconds mean if you can explain what has led to this gross margin expansion and how should one look at that I mean when you say this uh 400 to 500 cr of impact uh 39:00 39 minutes how much of that impact will be seen in the gross margins um yeah that's actually uh two qu two 39:09 39 minutes, 9 seconds questions um so first on the um on the margin expansion that we on Q4. I think there's there's one element of source 39:17 39 minutes, 17 seconds mix that also plays there where it's the accounting. I think we also um are very happy that we see that the work that we 39:24 39 minutes, 24 seconds are doing on premization that while we made some conscious choices on NBI, we also see still improvements in the 39:31 39 minutes, 31 seconds efficiency of our operations of our procurement um that really helps support the sustained and and long-term growth 39:38 39 minutes, 38 seconds of our of our growth margins including the uh the capability and the hard work that we've been doing on pricing. If we 39:46 39 minutes, 46 seconds see that especially the width of the pricing that we've been able to to get over the past 12 months and that we're also anticipating as part of the 39:54 39 minutes, 54 seconds mitigation for the time to come is a proof point that we're really taking up the role as leading the category and and taking up the conversations with the 40:01 40 minutes, 1 second regulators that no category can survive without pricing. So all of that is um is 40:08 40 minutes, 8 seconds resulting into a healthy um margin expansion that we see and that we that we are really um going after to sustain 40:16 40 minutes, 16 seconds it as part of a winning strategy for the outlook. Um like VTEC mentioned earlier that cost pressure will have an impact 40:24 40 minutes, 24 seconds on uh our materials either direct or indirect which will lead to an increased cost of production. So we do see that 40:33 40 minutes, 33 seconds with the pricing that we've able to capture and that will um start hitting our P&L in April and onwards we further 40:40 40 minutes, 40 seconds identified and at states like Gangana and uh and others that are significant in volume if we succeed in pricing it 40:48 40 minutes, 48 seconds will have definitely an impact evenly if the instate profitability may still remain marginal given the size on the 40:55 40 minutes, 55 seconds total margin um development it will have a big impact. So in that sense we we closely monitor um like feedback 41:04 41 minutes, 4 seconds mentioned we need to make the right choices first for the consumer to be able to supply second in some cases the 41:12 41 minutes, 12 seconds hard choices if business turns out not to be feasible also to protect our long-term margin. So while we first uh 41:21 41 minutes, 21 seconds and foremost remain a growth company, we of course take a look at the margin with the current outlook that we use. Um we 41:28 41 minutes, 28 seconds don't see too big of a drop on uh on margins, especially taking into account the growth that we've seen so far. So we 41:35 41 minutes, 35 seconds keep a close eye on it. Um the bottom line impact in absolutes is currently our bigger concern. 41:43 41 minutes, 43 seconds That's helpful. Thank you so much. Thank you. Next question is from the line of Mr. 41:52 41 minutes, 52 seconds Swami Natan from Amendas Park. Please go ahead. 41:56 41 minutes, 56 seconds Uh hello thanks for the opportunity. So one question is regarding the capix announcements in UP and the other two bottling projects when are they expected 42:05 42 minutes, 5 seconds to come online and what is the level of cost savings that we should expect from these capix coming through? 42:11 42 minutes, 11 seconds Yeah, I think up as you said the civil work has started. We expect a beauty to start by end of next year um sometime 42:19 42 minutes, 19 seconds before end of next year and I think the two can lines we expect to inaugurate before uh end of July this year. So 42:28 42 minutes, 28 seconds depending on monsoons or some other factors which come in so the work is going on full steam. I think it is it is going to provide uh first growth 42:36 42 minutes, 36 seconds opportunity and growth potentials because Telangana for example because of the economics uh we have not been 42:44 42 minutes, 44 seconds selling our cans. So this will and and I think we have almost less than 2% market share on a on a segment which is 42:52 42 minutes, 52 seconds growing. This will definitely step up because consumers are looking forward to our brands in the cans when we go to the market and so it will definitely have a 42:59 42 minutes, 59 seconds competitive impact. We have also made capital capex investment on coolers. 43:05 43 minutes, 5 seconds This year we are deploying further 16,000 coolers and we also seeing that you know that is also helping in uh in 43:13 43 minutes, 13 seconds consumption of the brands to really do that. So I think it will have an impact on growth but it will also have an impact on localization 43:22 43 minutes, 22 seconds uh of some of the imports we do will become local and will of course in a competitive context you know some of it we will absolutely invest back uh 43:31 43 minutes, 31 seconds because it some of in some of the markets it will be it will take some time also to build uh this back. 43:38 43 minutes, 38 seconds Thank you. Just clarification to this is that so our 200 crores of savings that we've been talking about does not include any potential savings from the new capex. 43:47 43 minutes, 47 seconds No no because it is fully on and of course we continuously work on how can we make the investments more efficient but that is nothing to do with this 43:56 43 minutes, 56 seconds because that is absolutely operating expenses extra pricing uh efficiency in the spends ROI people 44:04 44 minutes, 4 seconds productivity all every every single thing. 44:07 44 minutes, 7 seconds Yeah. And of course as part of that plan we're taking a close look at the total investment plan and we do make some choices in in smaller investments uh 44:16 44 minutes, 16 seconds that we postpone in order to push back on the on the depreciation as well as prevent the cash going out but not for these large growth oriented investments. 44:25 44 minutes, 25 seconds We continue to go full throttle on these because we believe that that is what's needed in order to um to lead the category growth. 44:35 44 minutes, 35 seconds Fair enough. Thank you and all the best. 44:39 44 minutes, 39 seconds Thank you. A reminder to all the participants you may press star and one to answer question. 44:44 44 minutes, 44 seconds Next follow-up question is from the line of Farit Kapoor from Invest India. Please go ahead. 44:50 44 minutes, 50 seconds Uh yeah. Hi. Uh thanks for taking the followup. Uh so just uh you know one question on you know where we've ended 44:56 44 minutes, 56 seconds the uh the uh year in terms of premium mix in volume and value. If you could just give us that number. That's it. 45:05 45 minutes, 5 seconds So the last year the premium volume growth was 21% for UBL and we grew market share in premium with 21% volume growth. Our 45:13 45 minutes, 13 seconds premium mix for in our portfolio is still less than 10%. Uh so it's a you know it's a 100 basis point improvement 45:21 45 minutes, 21 seconds in our salience to really bring together. But the encouraging part is despite all the challenges in the category we ended up with a 21% growth. 45:29 45 minutes, 29 seconds The most important thing is we were able to localize most of our premium portfolio. Marit and that is also reflecting in our gross margins because 45:37 45 minutes, 37 seconds there are eight locations where we are now locally producing which is translating into gross margins which I also mentioned in the last call that you will start seeing the impact. 45:48 45 minutes, 48 seconds Got it. Got it. And in this and this number that you mentioned is uh on the premium mix is just sub 10% is uh is volume. 45:57 45 minutes, 57 seconds The volume is up 21%. Yeah, we are talking volume from a value point of view. You know I don't have the exact number because it varies by state or revenue. 46:07 46 minutes, 7 seconds Perfect. Perfect. Thank you. Thank you. 46:14 46 minutes, 14 seconds Next followup question is from the line of Mr. Swami Natan from Aendas Park. Please go ahead. 46:20 46 minutes, 20 seconds Thanks for the opportunity again. So I wanted to understand as to has the category seen any tailwinds from Maharashtra after the ILMFL price 46:29 46 minutes, 29 seconds increases there and given that you have done a lot of initiatives in Maharashtra over the last 18 months. Is there any attainments which is still left over in 46:37 46 minutes, 37 seconds terms of benefit over the next 12 to 18 months? 46:41 46 minutes, 41 seconds I think Maharashtra the category is growing up upward about 20%. And our business is going upward 20% as well. I 46:50 46 minutes, 50 seconds do think this will continue. I don't think I think it's a structural change which which will continue to expand the 46:58 46 minutes, 58 seconds category and we know there's a lot of investments are coming in Maharashtra both on innovation and the category. We also seeing economy segment in 47:05 47 minutes, 5 seconds Maharashtra expanding. We saw that in Tanaka that when economy segment expands lot of consumers they they switch their 47:13 47 minutes, 13 seconds choices from low-end spirits to beer and especially with this. So we see the 47:19 47 minutes, 19 seconds trend going uh in Maharashtra. So I I still think the opportunity in Maharashtra is huge. The way we are 47:26 47 minutes, 26 seconds looking at Maharashtra is every district as a country now. So we have gone to the next level. So we see lot of category 47:34 47 minutes, 34 seconds growth opportunity within Maharashtra with the same policy regime in large number of districts versus if you take out Mumbai, Tane and all. So I I think 47:43 47 minutes, 43 seconds Maharashtra will be a growth pillar unless some dramatic shift happen in the policy over the next couple of years. 47:52 47 minutes, 52 seconds Right. Thank you. 47:55 47 minutes, 55 seconds Thank you. Next followup question is from the line of Anish Roy from Noama. Please go ahead. 48:03 48 minutes, 3 seconds Yeah, thanks. Uh two quick uh questions. 48:05 48 minutes, 5 seconds So Vive, uh last two years you have done lot of uh new launches, innovations. So which ones are you most happy and where 48:12 48 minutes, 12 seconds are uh uh their learning? So London Pilsner and uh Heineken silver etc. And related question uh which are the 48:20 48 minutes, 20 seconds markets you want to now locally manufacture Hinekin silver or any other part of the portfolio in the next two years any plans you can share? 48:31 48 minutes, 31 seconds Yeah. No I think the the the most excited we are is about Hen Silver first. I think Henik Silver is not only 48:38 48 minutes, 38 seconds expanding the category but it is actually delighting the consumer. It is it is a 100% malt beer. uh to to do 48:46 48 minutes, 46 seconds that. We are seeing a significant growth. You know, we had a bump up because Karnataka we were not able to produce locally but now that thing is 48:54 48 minutes, 54 seconds over as well. We are actually able to produce. We are going to expand Hanik capacity in two more places in the next 49:02 49 minutes, 2 seconds two years since you asked and maybe more up as I mentioned in a green field beauty. It will be world-class bury with 49:09 49 minutes, 9 seconds Hanik facility and that will serve the north grade. We will also have a location in east where we are going we are already started working and 49:18 49 minutes, 18 seconds hopefully by next year we will have the hanikan facility ready in east as well. 49:22 49 minutes, 22 seconds We also looking at global hyukan network to see from a sourcing point of view but we are very very excited on hikon potential. Our recent innovation on 49:31 49 minutes, 31 seconds kingfisher smooth is off to a great start in Rajasthan. The repeat rates are fantastic. It's a great brew. uh we and 49:38 49 minutes, 38 seconds we know in this category it takes time for trials to build in but we are very excited about it. We are the work we 49:44 49 minutes, 44 seconds have done on our draft beers uh you know is with ultra max now or and even in ultra uh the recent repackaging and uh 49:54 49 minutes, 54 seconds relaunch of the brand is doing very well. So the big learning is that it takes time to build innovations. So we we cannot measure innovation like in 50:02 50 minutes, 2 seconds FMCG okay just build the distribution it will come because it takes time to uh to create awareness especially in a dark 50:09 50 minutes, 9 seconds market. Second, we need to be on trend and ahead of trend versus me to innovation. And third, we need to make 50:17 50 minutes, 17 seconds sure that we we actually have a supply chain who can deliver consistency 50:23 50 minutes, 23 seconds because in beer uh giving consistent uh supplies on innovation especially when 50:30 50 minutes, 30 seconds you operate large scale breweries, you need lower MOQs and all are the are the learning which is which is there. 50:36 50 minutes, 36 seconds Thanks Vic. One last question on your remark on craft beer. So you have also been launching and uh the larger players 50:43 50 minutes, 43 seconds also. My question was more on competition from some of the local craft beer like I don't know if you have uh uh had a deep study of Duli for example. 50:53 50 minutes, 53 seconds Dualali what we heard from lot of customers uh very premium beer but uh the taste etc of that guava mango etc 51:01 51 minutes, 1 second very differentiated and a lot of fan following. So do you have a product which can compete with these kind of products or it's too niche and as of now too premium so uh doesn't make sense? 51:11 51 minutes, 11 seconds No, I think I think flavors is one of the platforms in the innovation. There are different platforms. You are talking about flavors. We launched Kingfisher 51:18 51 minutes, 18 seconds flavors in Goa uh and in Dhan and we of we had a very good learnings and response on product stability uh 51:26 51 minutes, 26 seconds consumer preferences to do that. As I said, you know, we have a huge pipeline of innovation. It is a combination of what what we want to do and what we want 51:34 51 minutes, 34 seconds to expand. As a management team, we have decided to do fewer innovation but and very focused and first win in 51:42 51 minutes, 42 seconds few states and then expand it when we have the right insights learning to do that but we consistently you know work 51:50 51 minutes, 50 seconds with the local players to understand the new trends and and how we partner with them. 51:55 51 minutes, 55 seconds Thank you Nish. I'll request you to come back for a follow-up question. Yeah, I'm done. 52:02 52 minutes, 2 seconds Thank you. 52:05 52 minutes, 5 seconds Next question is from the line of Netan from HTF securityities. Please go ahead. 52:11 52 minutes, 11 seconds Hi, thanks a lot for taking my question. Uh my first question pertains to this uh sort of dependency reducing in our own 52:19 52 minutes, 19 seconds buries. So this is a one-time uh sort of action in Q4. So going forward uh the supplies from ownies will be normalized. 52:28 52 minutes, 28 seconds Is that a correct uh assessment? 52:31 52 minutes, 31 seconds Yes. Yes. I think there will be an impact of you know our contract brewies because in some cases those states are 52:40 52 minutes, 40 seconds growing faster where we have contract brewies you know one good example is Jared where the category has almost doubled since September October because 52:49 52 minutes, 49 seconds of the new policy of privatization of retail and we don't have a bury so there will be an impact of the mix where we don't have the beauties but hopefully 52:57 52 minutes, 57 seconds with some of the other changes which we expect in some of the other states where we among brewies that will balance out but if you keep those factors aside 53:05 53 minutes, 5 seconds there is no reason for us not to utilize our duties fully. 53:12 53 minutes, 12 seconds Oh thanks. Uh second question pertains to I guess uh some of the disclosures have gone uh have been reduced like uh 53:18 53 minutes, 18 seconds your segment performance result and second like a regional growth trend. So I would be particularly keen to have a 53:26 53 minutes, 26 seconds data on the regional trend which you have been highlighting for the past few quarters. 53:32 53 minutes, 32 seconds Yeah, I think you know we were just we thought there were many other questions in mind of people this time. We can always share the data later on. It was 53:41 53 minutes, 41 seconds not intentional to remove it. It was just that we added few slides on on the war impact and we said you know maybe 53:48 53 minutes, 48 seconds let's let's keep the macro picture and all but if you're interested we can share that. 53:54 53 minutes, 54 seconds But it's a good feedback. Sorry we uh you know it was not a deliberate not to share it was more to simplify the the presentation let's call it that way. 54:04 54 minutes, 4 seconds Thank you ladies and gentlemen. We will take that as a last question. I'll now end the conference for Mr. V Gupta for closing comments. 54:15 54 minutes, 15 seconds No thanks everyone for joining and your participation. I know I think you know it is it is results are below expectation and we understand that but I 54:24 54 minutes, 24 seconds again as I said for us we are in this game for long run. We want to play the role of category maker. The category 54:31 54 minutes, 31 seconds trend is positive. The effort is is really paying off and we need to do more effort on uh on the policy front. I 54:39 54 minutes, 39 seconds think at the same time I think it is a difficult time for the category. 54:44 54 minutes, 44 seconds However, I think you know we are very committed to the category growth. We are very committed to brand building. We are very committed to run a very efficient organization and we are very committed 54:52 54 minutes, 52 seconds to be very transparent with you so that you can you can also understand what is coming. For the first time probably we 54:59 54 minutes, 59 seconds are giving exact numbers in form of some guidance on the impact and that was also a deliberate call so that you understand the magnitude of the impact because 55:08 55 minutes, 8 seconds sometimes in other FMCG companies uh you know who are not regulated on pricing you know they can mitigate the impact 55:15 55 minutes, 15 seconds for us there is always a uh lag between that but having said that as a UBL we are fully fully prepared for the growth 55:24 55 minutes, 24 seconds challenge we are going to be aggressive but choiceful and we will continue to work on the structural improvement on our business. 55:32 55 minutes, 32 seconds Thanks everyone. 55:35 55 minutes, 35 seconds Thank you very much. On behalf of United Breweries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.