United Breweries Limited — Important, 18-12-2024: Updates

United Breweries Limited is implementing a productivity program aimed at enhancing operational efficiency and competitiveness. Key initiatives include revamping workplace policies to promote work-life balance and well-being, with a specific focus on supporting female employees. The company is also reviewing its executive benefits to align with industry standards and streamline operations, which will help reduce administrative complexity and yield savings.

A redesign of the Supply Chain and Finance functions is underway, focusing on scaling procurement, digitizing operations, simplifying processes, and centralizing finance. These changes are anticipated to enhance customer service and support sustainable growth. Additionally, cost optimization efforts, including revisions to manpower deployment and hiring processes, are expected to generate annual savings of 1.5%-3% of total fixed costs.

While there will be one-time costs associated with the redesign, including severance and retirement benefits, these measures are expected to drive long-term value. The financial impact of these initiatives will be reflected as an exceptional item in the upcoming Q3 FY 2025 results. The company remains committed to delivering value to stakeholders while continuing to optimize its operations.