Bottlers Nepal’s two companies return to profit; Revenue rises by up to 13.47pc

KATHMANDU: Both companies under the Bottlers Nepal group — Bottlers Nepal (Terai) and Bottlers Nepal (Balaju) — have returned to profitability in the second quarter of the current fiscal year 2082/83, marking a financial turnaround from losses recorded during the same period last year.

Financial statements up to the end of Poush show improved earnings, higher operating income, and strengthened reserves for both entities, reflecting recovery in beverage demand and operational performance.

Bottlers Nepal (Terai): Profit Rebound and Double-Digit Revenue Growth

Bottlers Nepal (Terai) posted a net profit of Rs 135.49 million in Q2 of the current fiscal year. In the corresponding period last year, the company had recorded a net loss of Rs 118.94 million.

Over the six-month review period, the company generated operating revenue of Rs 3.368 billion, up from Rs 2.969 billion in the same period last year. This represents a 13.47% increase, equivalent to an additional Rs 399.95 million in revenue.

During the review period:

Gross profit: Rs 953.48 million

Other operating income: Rs 56.94 million

Operating profit: Rs 218.67 million

In the previous year’s comparable period, the company had posted:

Gross profit of Rs 623.53 million

Other operating income of Rs 35.69 million

Operating loss of Rs 2.45 million

Cost structure during the six months included:

Selling and distribution expenses: Rs 590.42 million

Administrative and operating expenses: Rs 201.33 million

Finance cost: Rs 69.81 million

The company has a paid-up capital of Rs 121 million and a reserve fund of Rs 3.535 billion. Following the profit growth:

Earnings per share (EPS): Rs 224

Net worth per share: Rs 3,022

Price-earnings (P/E) ratio: 52 times

Bottlers Nepal (Balaju): Turnaround from Heavy Loss to Profit

Bottlers Nepal (Balaju) reported a net profit of Rs 31.27 million in the second quarter, compared to a net loss of Rs 245.04 million in the same period last year.

Its six-month operating revenue reached Rs 4.752 billion, up from Rs 4.364 billion a year earlier — an 8.88% increase, or an additional Rs 387.95 million.

Financial performance indicators for the review period show:

Gross profit: Rs 1.226 billion

Other operating income: Rs 57.67 million

Operating profit: Rs 133.88 million

In the previous year’s corresponding period:

Gross profit stood at Rs 936.83 million

Other operating income was Rs 16.4 million

Operating loss was Rs 126.69 million

Expense breakdown:

Selling and distribution expenses: Rs 771.03 million

Administrative and operating expenses: Rs 378.78 million

Finance cost: Rs 79.66 million

The company’s paid-up capital stands at Rs 194.89 million, while its reserve fund totals Rs 5.702 billion.

Post-recovery financial metrics include:

Earnings per share (EPS): Rs 19

Net worth per share: Rs 3,201

P/E ratio: 797 times

The financial turnaround of both Bottlers Nepal companies indicates stronger operational recovery compared to the previous fiscal year, with rising revenues, improved profitability, and expanded reserves strengthening their balance sheets.