Murree Brewery’s profit clocks in at Rs496.6 million

Company’s six-month earnings were down 9% year-on-year

KARACHI: Murree Brewery saw its net profit decline by almost a tenth to Rs497 million during the six-month period ended December 31, 2015, according to a notice sent to the Pakistan Stock Exchange on Thursday.

One of the subcontinent’s oldest public listed companies, Murree Brewery posted an after-tax profit of Rs496.6 million or Rs21.5 per share during the period under review, down 9% compared to Rs545 million or Rs23.6 per share it earned in the corresponding period of 2014.



The Rawalpindi-based company saw its revenues increase by 7.3% to Rs2.86 billion during the second half of 2015 compared to Rs2.66 billion it grossed in the corresponding period of 2014.

Murree Brewery is not covered by market analysts since it is not a liquid stock. The company’s market performance, however, indicated the result was good.

Murree Brewery’s stock, which traded at Rs743 per share the previous day, increased by Rs33.38 or 4.49% to settle at Rs776.50 at close of market on Thursday - with 11,160 shares traded during the day.

The result for the latest quarter is good while the decline in their profit can be attributed to the performance of its glass division in July-September quarter, Taurus Securities’ Head of Research Zeeshan Afzal said. Their gross profit margin also declined by 5.18% to 33.48% during the six-month period compared to 38.66% of the same period of 2014.

The glass division’s sales were down in the previous quarter, Afzal said, explaining the company’s furnace plant was under construction in that quarter. He, however, added the results of the latest quarter indicate there is some recovery - the company’s glass sales clocked in at Rs353 million in the latest quarter, up 443% from Rs65 million of the previous quarter.



Afzal, however, added the outlook is positive because of growing demand for their products. The furnace plant is also complete and production has started, which will also help improve sales of the glass division, he said.

Published in The Express Tribune, February 26^th, 2016.

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