Brands
United Breweries Q3 profit jumps 86 per cent on premium beer growth
Premiumisation drives margins higher as net profit more than doubles in the December quarter.
MUMBAI: United Breweries Limited (UBL) has clearly decided that when life gives you lemons, you should probably just make a Shandy or, better yet, launch a premium lager. The beer behemoth reported a sparkling set of financial results for the quarter ended 31 December 2025, proving that its strategy is far from going flat. In a performance that would make any publican proud, the company saw its Earnings Before Interest and Taxes (Ebit) skyrocket by a heady 86 per cent during the quarter.
The secret behind this intoxicating growth? A stiff dose of “premiumisation”. While the broader portfolio stayed steady, premium volumes bubbled up by 23 per cent year-to-date. This shift towards the finer things in life helped drive net sales up by 4 per cent in Q3, despite a slight dip in total revenue from operations, which stood at Rs 3,93,563 lakhs compared to Rs 4,42,465 lakhs in the same period last year.
The bottom line is looking particularly crisp. The company’s Gross Profit (GP) margin for the quarter hit 45.3 per cent, the highest level seen in three years. This 222-basis-point jump was fueled by a positive price-mix and a savvy move towards localising the portfolio.
Key standalone financial highlights for the quarter show a strong improvement across the board. Total income stood at Rs 3,94,648 lakhs, while profit before tax rose sharply to Rs 13,186 lakhs, compared to Rs 6,097 lakhs in the quarter ended December 2024.
Net profit came in at Rs 8,083 lakhs, more than doubling the previous year’s Q3 figure of Rs 3,826 lakhs. Earnings per share (EPS), both basic and diluted, increased to Rs 3.06 from Rs 1.45 year-on-year.
It wasn’t all cheers and celebratory rounds, however. UBL is still navigating some murky legal waters. The company continues to contest a Rs 75,183 lakh penalty from the Competition Commission of India (CCI), a matter that is currently sub judice before the Supreme Court. Additionally, the company is still untangling itself from the Bihar prohibition blues. While manufacturing remains closed in the state, UBL has applied under the “Amnesty Policy 2025” to potentially restart non-alcoholic beverage production at its Bihar unit, which holds assets worth Rs 5,894 lakhs.
There was also a one-off “exceptional” hit to the books. The company set aside Rs 1,873 lakhs in the quarter to account for the incremental impact of India’s new Labour Codes, specifically regarding gratuity and long-term compensated absences.
Looking ahead, UBL is keeping its glass half full. The firm’s “Productivity and Cost-Effectiveness” programme is expected to deliver gross savings of 3–6 per cent over time, with much of that cash being reinvested into brand power. Innovation remains on the menu too, with the recent January 2026 launch of Kingfisher Smooth in Rajasthan and Karnataka aimed at quenching the evolving thirst of the Indian consumer.
With brand power at a three-year high and a clear focus on the premium end of the bar, United Breweries seems well-positioned to keep the momentum flowing through 2026. It appears that for UBL, the only way is up, and preferably served chilled.
Brands
Lululemon picks former Nike executive to be its next chief
Heidi O’Neill, who helped grow Nike into a $45 billion giant, will take the top job in September
CANADA: Lululemon has found its next chief executive, and she comes with serious credentials. The athleisure giant named Heidi O’Neill as its new CEO on Wednesday, ending a search that has left the company running on interim leadership since earlier this year. O’Neill will take charge on September 8, 2026, based out of Vancouver, and will join the board on the same day.
O’Neill brings more than three decades of experience across performance apparel, footwear and sport. The bulk of that time was spent at Nike, where she was a central figure in one of corporate sport’s great growth stories, helping take the company from a $9 billion business to a $45 billion global powerhouse. She oversaw product pipelines, brand strategy and consumer connections, and played a significant role in shaping how Nike spoke to athletes around the world. Earlier in her career, she worked in marketing for the Dockers brand at Levi Strauss. She also brings boardroom experience from Spotify Technology, Hyatt Hotels and Lithia and Driveway.
The board was unequivocal in its enthusiasm. “We selected Heidi because of the breadth of her experience, her demonstrated success delivering breakthrough ideas and initiatives at scale, and her ability to be a knowledgeable change and growth agent,” said Marti Morfitt, executive chair of Lululemon’s board.
O’Neill, for her part, was bullish. “Lululemon is an iconic brand with something rare: genuine guest love, a product ethos rooted in innovation, and a global platform still in the early stages of its potential,” she said. “My job will be to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world.”
Until she arrives, Meghan Frank and André Maestrini will continue as interim co-CEOs, before returning to their previous senior leadership roles once O’Neill steps in.
Lululemon is betting that a Nike veteran who helped build one of the world’s most powerful sports brands can do something similar for an athleisure label that has genuine love from its customers but is still chasing its full global potential. O’Neill has done it before at scale. The question now is whether she can do it again.
