Pakistan’s most prominent manufacturer of alcoholic products and one of the most oldest public listed companies, Murree Brewery saw its profit increase by 40.22% to Rs 1.29 billion for the year that ended June 30th 2018 as compared to last year’s profit of Rs 920 million.
Earnings per share of the company increased to Rs 56.23 from Rs 39.94 in the corresponding year.
The board of directors has also announced a cash dividend of Rs 5 i.e. 50%. The board also recommended issuing 20% fully paid bonus shares in proportion of one ordinary share for every 5 ordinary shares held by the members.
Manufacturing at MUREB is organized under three divisions. One is the liquor division, which has been the traditional business of the firm. Second is Tops Foods division under the brand of Tops Food and Beverages. The firm also has a Tetra Pak packaging facility. The Glass division is located in Hattar. The company also owns the Sparkletts mineral water brand.
The liquor division has grown consistently in recent years and due to its large base. It showed a massive turnover and played the vital role in boosting the profits of the company. It posted a profit before tax of Rs 1.19 billion, up by 58% from last year’s profit of Rs 754 million.
The glass division also showed a growth of Rs 578 million, up by 25.65% from Rs 460 million in the same period last year.
The tops division (juice) dented to the profits as it posted a loss of Rs 106 million from a profit of Rs 3.82 million in the corresponding year.
The gross profit margin for the year under review also improved to Rs 2.86 billion, up by 32.41% compared to Rs 2.16 billion of the previous year.
The selling and distribution expenses saw an increase of 27.06% from the previous year.
Murree Brewery’s stock closed at Rs 803.90, up by Rs3 6.77 as it hit the upper cap after increasing 5% on Thursday – with only 11,900 shares traded during the day.
Faced with strict regulations regarding consumption of alcohol in the country, Murree Brewery is now looking to venture into freer liquor markets abroad by negotiating a worldwide distribution deal through a Czech brewery that produces its beer, reported The Economist back in March.