Murree Brewery Company Limited (PSX: MUREB) has reported a significant increase in quarterly earnings for Q3 CY24, with after-tax profits surging by 54.7% year-on-year (YoY) to reach Rs913.86 million (EPS: Rs33.03). This compares favorably to Rs590.69 million (EPS: Rs21.35) in the same period last year (SPLY), driven largely by growth in revenue and gross profit margins. Reflecting its strong performance, MUREB’s board has declared an interim cash dividend of Rs5 per share, equating to a 50% payout.
Key Financial Highlights
The company’s sales revenue rose by 21.3% to Rs7.1 billion, while cost of sales increased by 16.8%, which helped boost gross profit by 35.2% to Rs1.92 billion. Gross margins for Q3 CY24 improved to 27.0%, up from 24.2% in SPLY, illustrating the company’s effective cost management amid growing revenues.
Other income also saw an increase of 20.7%, reaching Rs21.4 million in Q3 CY24.
Expense and Finance Breakdown
Despite the positive revenue growth, Murree Brewery faced higher operational expenses:
- Administrative expenses rose 25.2% to Rs204.2 million.
- Distribution and selling expenses increased 24.4% to Rs422.35 million.
- Other operating expenses surged 53.7% to Rs114.91 million.
However, net finance income saw a substantial rise of 174.7% YoY, standing at Rs300.18 million compared to Rs109.3 million in SPLY, further supporting the company’s profit growth.
Tax Impact and Net Profit
The tax expense also rose by 54.7%, amounting to Rs584.27 million, but the company’s overall revenue and finance income growth helped offset these increased costs, leading to a robust net profit outcome for the quarter.
Financial Summary (Un-audited Results for Quarter Ending September 30, 2024)
| Metric | Sep 2024 | % Change from Sep 2023 |
|---|---|---|
| Sales | Rs7,103,993 | 21.25% |
| Cost of Sales | (Rs5,185,995) | 16.80% |
| Gross Profit | Rs1,917,998 | 35.18% |
| Administration Expenses | (Rs204,197) | 25.24% |
| Distribution & Selling Expenses | (Rs422,348) | 24.35% |
| Other Income | Rs21,403 | 20.72% |
| Other Operating Expenses | (Rs114,906) | 53.65% |
| Finance Income | Rs300,182 | 174.65% |
| Profit before Taxation | Rs1,498,132 | 54.71% |
| Taxation | (Rs584,271) | 54.71% |
| Net Profit | Rs913,861 | 54.71% |
| Basic Earnings per Share (EPS) | Rs33.03 | – |
Outlook
Murree Brewery’s solid performance this quarter underscores the company’s ability to drive profit growth through revenue expansion and improved margins. The dividend announcement further reinforces the company’s commitment to providing value to shareholders, positioning it strongly for future growth.
