Himalayan Distillery Limited (HDL), a leading liquor manufacturer in Nepal, has released its unaudited financial results for the third quarter of the current fiscal year. The report indicates a positive trend, with both net profit and sales revenue showing growth compared to the same period last year.
By the end of the third quarter (Chaitra), the company recorded a net sales revenue of Rs 3.09 billion, marking an 11% increase from the Rs 2.78 billion recorded in the previous year. Driven by this growth in sales, the net profit reached Rs 851.3 million, representing a 15.16% increase year-over-year.
Despite challenges such as the national economic slowdown and fluctuating consumer purchasing power, the company has managed to maintain its market share. Key internal and external challenges identified include rising raw material costs, the energy crisis, and high excise duty rates on alcoholic beverages. To mitigate these issues, the company plans to focus on production diversification and the implementation of new technologies, such as the 'DDGS' plant, to reduce operational costs.
Financial indicators remain strong for the distillery. The company’s operating profit stands at Rs 1.16 billion due to controlled operational expenses. With a paid-up capital of Rs 2.67 billion and reserves totaling Rs 1.17 billion, the company demonstrates a healthy capacity for future dividend distribution. Additionally, a Price-to-Earnings (P/E) ratio of 37.23 indicates continued high investor attraction in the secondary market.
