Corporate results: Murree Brewery posts Rs545.4m profit

Second half of financial year is expected to be better.

KARACHI: Murree Brewery posted a net profit of Rs545.4 million for July-December 2014, which is up 51.4% from the same six-month period of the previous fiscal year.

According to financial accounts released to the Karachi Stock Exchange (KSE) on Monday, the company’s earnings per share increased to Rs23.66 compared with Rs15.62 during the same period of the last fiscal year. The company divides its products into three broad categories, namely liquor division, glass division and Tops division (juices). While the Tops division posted a year-on-year nominal decline in gross profit, other two divisions showed a substantial increase in profitability.

The share of the liquor division in the company’s gross profit for July-December was in excess of 70%, the financial accounts showed.

Murree Brewery’s revenue went up 26.2% in the period under review partly due to increased beer sales, according to the company chairman.

The hike in the gross profit was 44% on a year-on-year basis, which increased to over Rs1 billion at the end of the six-month period. Capital gains and other income increased by a massive 64.2% to Rs136.5 million from Rs83.1 million in the corresponding period.

While Pakistani laws prohibit Muslims from consuming alcoholic drinks, non-Muslims and foreigners are required to have consumption permits to purchase liquor.

“The company sales are seasonal and the second half of the year is expected to be better. Load-shedding and fierce competition are expected to continue in the soft drinks market,” the chairman wrote in his report.

Published in The Express Tribune, February 24^th, 2015.

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