Murree Brewery Company Limited (PSX: MUREB) has reported a significant 54.7% year-on-year increase in its quarterly earnings, with after-tax profits rising to Rs. 913.86 million (EPS: Rs. 33.03), compared to Rs. 590.69 million (EPS: Rs. 21.35) in the same period last year. In light of this substantial profit surge, the company’s board of directors has declared an interim cash dividend of Rs. 5 per share, equivalent to a 50% payout.

The company’s top line expanded by 21.3%, reaching Rs. 7.1 billion compared to Rs. 5.86 billion in the same period last year. Although the cost of sales increased by 16.8%, it was less than the rise in sales, leading to a 35.2% improvement in gross profit, which totaled Rs. 1.92 billion in Q1. Consequently, gross margins improved to 27.0%, up from 24.2% in the previous year.

During the review period, other income rose by 20.7%, amounting to Rs. 21.4 million in Q1 CY24, compared to Rs. 17.73 million in the same period last year. On the expense side, administration expenses increased by 25.2% year-on-year to Rs. 204.2 million, distribution and selling expenses rose by 24.4% to Rs. 422.35 million, and other operating expenses surged by 53.7% to Rs. 114.91 million.

The company faced a higher tax burden, paying Rs. 584.27 million compared to Rs. 377.65 million in the corresponding period last year, marking a 54.7% increase. Despite the rise in expenses and tax expenditures, the substantial growth in sales and finance income offset these impacts, resulting in an impressive quarterly financial performance.

Notably, the company’s net finance income surged by 174.7%, reaching Rs. 300.18 million, up from Rs. 109.3 million in the same period last year.