MUREB declares Rs5 dividend as profit spikes 55% in Q3

October 25, 2024 (MLN): Murree Brewery Company Limited (PSX: MUREB) recorded an increase of 54.7% YoY in its quarterly earnings, with the company's after-tax profits rising to Rs913.86 million [EPS: Rs33.03], compared to a profit of Rs590.69m [EPS: Rs21.35] in the same period last year (SPLY).

Driven by the massive surge in profits, the board of directors of MUREB has announced an interim cash dividend of Rs5 per share i.e. 50%.

Going by the results, the company's top line expanded 21.3% to Rs7.1bn as compared to Rs5.86bn in SPLY.

The cost of sales rose by 16.8% but was less than proportionate to sales rise, which improved the gross profit by 35.2% to Rs1.92bn in Q3 CY24.

The gross margins improved to 27.0% as compared to 24.2% in SPLY.

During the period under review, other income increased 20.7% to stand at Rs21.4m in Q3 CY24 as compared to Rs17.73m in SPLY.

On the expense side, the company's administration expenses rose 25.2% YoY to Rs204.2m, distribution and selling expenses increased 24.4% YoY to Rs422.35m, and other operating expenses surged 53.7% YoY to Rs114.91m.

On the tax front, the company paid a higher tax worth Rs584.27m against the Rs377.65m paid in the corresponding period of last year, depicting a rise of 54.7%.

Nonetheless, the growth in sales and fiance income was substantial enough to offset the negative impacts of rising expenses and tax expenditures, resulting in a remarkable quarterly financial outcome.

The company’s net finance income surged by 174.7% and stood at Rs300.18m as compared to Rs109.3m in SPLY.

Amount in thousand except for EPS

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