Lion Brewery (Ceylon) (LION.N0000) Q3 24/25 earnings summary

Executive summary

• Domestic macroeconomic indicators improved post-elections, but global volatility and supply chain disruptions persisted.

• January 2025 excise duty hike of 6% led to soft volumes and affordability challenges for consumers.

• Innovation Center launched to drive product development for local and international markets.

• Continued focus on cost and cash management, and digital transformation in finance and procurement.

Financial highlights

• Group revenue for nine months ended 31 Dec 2024 rose 17% year-over-year to LKR 92.5 Bn.

• Group net profit for the nine months increased 15% year-over-year to LKR 7.58 Bn.

• Gross profit for the nine months was LKR 21.3 Bn, up 13% year-over-year.

• Earnings per share for the nine months reached LKR 94.73, up from LKR 80.99 year-over-year.

• LKR 74 Bn paid in taxes during the nine months, on track for LKR 96 Bn for the full year.

Outlook and guidance

• Fourth quarter outlook remains uncertain due to volume pressure from the January 2025 excise duty hike.

• Full-year tax contribution expected to be about 3% of government tax revenue.