Corporate results: Murree Brewery puts in a strong show

Boosts profit by 23% in 1HFY14.

KARACHI: Murree Brewery boosted its profits by more than a fifth due to a strong performance by its liquor division in the six-month period ended December, 2013.

One of the subcontinent’s oldest public companies, Murree Brewery posted an after-tax profit of Rs360 million or Rs15.62 per share during the first half of fiscal year (FY) 2014, up 23% compared to Rs292 million or Rs12.69 per share it earned in the corresponding period of the last fiscal year.

The Rawalpindi-based company saw its revenues increase by 19% to Rs2.1 billion in the period under review compared with Rs1.7 billion it grossed in the corresponding period of FY13.

“There is some volumetric growth but their profits were mainly driven by the liquor division, which performed well,” said Zeeshan Afzal, Senior Manager Research at Topline Securities. The liquor sales increased by 30% during the first half of FY2014 to reach Rs1.7 billion, which is 80% of the total sales.

Though the growth rate for gross margin remained almost the same in the six-month period, the analyst said it grew by 29% in the July-September quarter and by 37% in the October-December period.

Established in 1860 to cater to the demand of British officers, Murree Brewery is the oldest enterprise running in the country – its shares were traded on the Calcutta Stock Exchange as early as 1902.

The Pakistani beverage company sold its franchise rights to an Indian entrepreneur last November who will sell Murree’s brands in India.

Published in The Express Tribune, February 22^nd, 2014.

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