Lion Brewery (Ceylon) (LION.N0000) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue rose 16% YoY to Rs 109,755,568 thousand; profit after tax increased 20% to Rs 8,403,478 thousand.

• Full-year volumes declined amid sharp excise-tax increases, consumer affordability pressure and illicit-product availability.

• FY24 EPS was Rs 105.04, compared with Rs 87.40 in FY23.

Financial highlights

• Q4 consolidated revenue rose 24% YoY to Rs 30,929,044 thousand; gross profit increased 26% to Rs 7,485,520 thousand.

• FY24 consolidated gross profit rose 17% YoY to Rs 26,364,825 thousand; operating profit before finance cost increased 18% to Rs 15,367,756 thousand.

• FY24 consolidated profit before tax increased 25% to Rs 14,001,948 thousand; profit after tax rose 20% to Rs 8,403,478 thousand.

• FY24 consolidated finance costs fell 23% YoY to Rs 2,581,608 thousand; net finance cost declined 27% to Rs 1,365,808 thousand.

Outlook and guidance

• FY25 outlook points to continued volume and margin pressure, consistent with FY24 conditions.

• An additional excise duty increase is expected in January 2025; rupee depreciation in H2 could create a further margin headwind.

• National elections in H2 are expected to add uncertainty.