Lions Brewery reports steady growth but flags uncertain outlook

Lions Brewery reported a strong top and bottom line for the quarter (3Q25) and nine months ended 31 December 2024, despite external volatilities stemming from global supply chain disruptions and geopolitical tensions.

The brewery saw its revenue expand 17 percent Year-on-Year (YoY) to Rs. 92 billion for the nine months, while for the 3Q25 period, revenue grew 16 percent to Rs. 31 billion.

The Group recorded a Profit After Tax (PAT) of Rs. 7.5 billion for the nine months, reflecting 17 percent YoY growth, while PAT for the October–December quarter stood at Rs. 2.89 billion.

Pointing out that the cumulative impact of excise duty hikes over the past three years is evident, Lions Brewery noted that total domestic alcoholic beverage category volumes for the first nine months of the financial year 2024/25 have been sluggish compared to the previous year.

During this period, the Group paid a total of Rs. 74 billion in taxes to the government.

“Despite the adverse impact on volumes, we are on track to pay approximately Rs. 96 billion in taxes for the full year, accounting for 3 percent of government’s tax revenue,” Lions Brewery said in a commentary that followed the release of its latest interim financial statements.

However, Lions Brewery said the outlook for the fourth quarter of the financial year 2024/25 remains uncertain due to volume pressure resulting from the excise duty hike in January 2025.

In January 2025, excise duty increased by 6 percent, which was yet again above inflation. Lions Brewery asserted that this increase has further pushed the legal alcoholic beverage segment beyond the affordability thresholds for consumers, as indicated by soft volumes following the January excise duty increase.

In 3Q25, Lions Brewery unveiled its state-of-the-art innovation centre, a facility dedicated to product development for both domestic and international markets.

Regarding other key strategic initiatives, the company noted that its cost and cash management efforts have continued to free up resources, supporting its growth agenda for the coming years. Meanwhile, digital transformation is progressing across all areas, with a particular emphasis on finance and procurement.

The earnings per share of Lions Brewery expanded to Rs. 94.73 for the nine months ended December 2024 from Rs. 80.99 recorded in the corresponding period the previous year. For the 3Q25 period, the earnings per share grew Rs. 36.18 from Rs. 27. 03 recorded in 3Q24.