Pakistan’s most prominent manufacturer of alcoholic products, Murree Brewery, saw its net profit decline by almost one-fifth to Rs210 million after the company’s glass division performed poorly in the financial year that ended on September 30, 2015, according to a notice sent to the Karachi Stock Exchange on Tuesday.
One of the subcontinent’s oldest public listed companies, Murree Brewery posted an after-tax profit of Rs210 million or Rs9.12 per share during the year under review, down 19% compared to Rs259 million or Rs11.25 per share it earned in the corresponding period of 2014.
Murree Brewery is not covered by market analysts since it is not a liquid stock. The company’s stock performance, however, indicated the result was below expectation.
Murree Brewery’s stock, which traded at Rs1,144.5 per share the previous day, hit the lower cap after declining by Rs54.5 or 5% and settled at Rs1,090 per share at the close of market on Tuesday – with only 500 shares traded during the day.
The decline in the profit can be attributed entirely to the performance of its glass division, Taurus Securities’ Head of Research Zeeshan Afzal said. The company’s turnover from the glass division declined by a massive 72% to Rs65 million in the latest quarter compared to Rs239 million in the same quarter of last year.
The overall result was not really bad, Afzal said, adding the liquor and tops division showed growth and margins were good.
The Rawalpindi-based liquor maker saw its revenues increase by 18.5% to Rs1.5 billion during the year ending September 30, 2015 compared to Rs1.4 billion it grossed in the corresponding period of 2014.
The gross profit margin for the year under review also improved to 29.8% compared to 23.5% of the previous year.
Published in The Express Tribune, October 28th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.