सागर डिस्टिलरी लिमिटेडको वित्तीय विवरणSagar Distillery Unaudited Financial Results

Sagar Distillery

Corporate office: Lal Colony

Registered office: Devchuli-01, Nawalparasi

Quarterly Financial Results

UNAUDITED STATEMENT OF FINANCIAL POSITION

ASSETS

NON-CURRENT ASSETS

a. Property, Plant And Equipment

b. Capital Work-In-Progress

c. Intangible Assets

d. Right Of Use Assets

e. Deferred Tax Assets

f. Investments

g. Other Non-Current Assets

Total Non-Current Assets

CURRENT ASSETS

a. Inventories

b. Financial Assets

c. Trade Receivables

d. Cash And Cash Equivalents

e. Other Current Assets

Total current assets

TOTAL ASSETS

EQUITY AND LIABILITIES

EQUITY

a. Equity

i. Share Capital

b. Other Equity

Total Equity

NON-CURRENT LIABILITIES

a. Financial Liabilities

i. Borrowings From Banks

ii. Lease Payables

b. Deferred Tax Liabilities

Total non-current liabilities

CURRENT LIABILITIES

a. Financial Liabilities

i. Borrowings From Banks

ii. Lease Payables

iii. Trade Payables

iv. Other Liabilities

b. Statutory &Other Current Liabilities

c. Current Tax Liabilities (Net)

Total current liabilities

TOTAL EQUITY AND LIABILITIES

UNAUDITED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED ASHADH

Gross Revenue From Operations

Less: Excise Duties

Less Sales Return

Net Sales Revenue

Less: Cost Of Goods Sold

Gross Profit

Other Operating Income

Gain On Investments Through Fair Value

Total Income From Operations

Employee Benefit Expenses

Administration And Other Expenses

Selling And Distribution Expenses

Operating & Non-Operating Profit

Depreciation And Amortisation

Finance Costs

Profit Before Tax

Income Tax Expenses

Deferred Tax

Current Tax

Profit for the year / period

Other Comprehensive Income

Items That Will Not Be Reclassified To Profit Or Loss:

Other Comprehensive Income

Total Comprehensive Income For The Year / Period

FINANCIAL RATIOS

Earning Per Share(EPS)

Current Ratio

Return on Assets

Net Worth Per Share(Excluding Assets Revaluation) in Rs.

Fourth Quarter / Year-End Disclosures as at Ashad End 2083 Under Rule 26(1)

of Securities Registration and Issue Regulation, 2073

Analysis of Shares Transaction

The company's shares are actively traded in the Nepalese capital market, reflecting continued investor interest and confidence. The market transaction details for this quarter (4th Quarter of FY 2082.83), according to data published on the NEPSE, are mentioned below:

Maximum Price:	1,944	1,490	5,75,280	1,618	65
Based on the closing price of Rs.	1,618	2083,	11,740.00

Analysis of Management

In FY 2082/83, Sagar Distillery Limited recorded gross revenue of NPR 476.36 million, an increase of approximately 11% over the previous year, supported by solid performance of flagship brands including Governor Whisky and Nepse Bulls. Net sales revenue grew by around 17% to NPR 209.89 million. However, elevated operating costs resulted in an operating loss and a net loss for the year of NPR 57.27 million, compared with a net profit of NPR 2.43 million in the prior year. The company is realigning its strategy for sustainable long-term growth. With Nepal's macroeconomic indicators showing early signs of stabilization - inflation remaining contained and government policies prioritizing ease of doing business and economic formalization - the management remains committed to improving operational efficiency and long-term value creation.

i. Strengthening Liquidity, Credit Management & Financial Discipline

Trade receivables stood at NPR 583.59 million, up approximately 24% over the preceding quarter (NPR 472.14 million) and around 29% over the prior year. In response to this, the company will strengthen credit discipline through regular audits, risk-tiered credit policies, and structured distributor management systems. These measures will enhance liquidity management, and support operational efficiency and sustainable growth.

ii. Expansion of Distribution, Market Performance and Portfolio Mix Improvement

During the year the company executed a major distribution expansion into Tier-2 cities, improving availability in previously underserved markets and securing meaningful share gains. Combined with new SKU launches and focused premium brand execution, the company achieved steady top-line revenue growth across key product segments.

Problems and Challenges

The fourth quarter and the year as a whole presented a mix of structural, regulatory, and global macroeconomic challenges for the company, which it navigated while pursuing its long-term growth agenda.

i. Declining Domestic Consumer Base

Nepal's liquor market continues to face structural headwinds from sustained outmigration of working-age adults, rising health and wellness awareness, and changing consumer markets, requiring the company to respond with sharper product positioning, premium experience delivery, and targeted portfolio diversification across modern on-premise channels, and activation strategies focused on the aspirational consumer segment.

ii. Media-Dark Operating Environment & Entry Barriers

Strict regulations prohibiting advertising, digital promotion, and surrogate communication create a highly restrictive environment for brand building. These category-wide challenges are compounded by complex outlet penetration, retail entry barriers, and intense competitive pressure from large industry players with entrenched networks.

iii. Global Supply Chain & Fuel Cost Pressures

The outbreak of the US-Iran conflict in 2082 triggered a sharp rise in global crude oil prices through the fourth quarter. As a landlocked market, Nepal experienced severe ripple effects during this period. This raised transportation and logistics costs across the company's supply chain and distribution network, while higher international freight rates fed into packaging and selling and distribution expenses. The company managed this through tighter logistics planning and route optimization, and continues to monitor global developments closely.

iv. Economic Headwinds & Operating Environment

Nepal's macroeconomic backdrop turned comparatively more supportive during the year, even as structural pressures persisted. Following the change in government, policy direction - targeting 7% economic growth - prioritized ease of doing business, tax simplification, and formalization of the economy. Inflation remained contained around 4% through the quarter. However, liquidity conditions across the trade network remained tight and private sector credit growth stayed subdued. The liquor industry also faced sustained cash flow and margin pressures. Delayed receivables from distribution partners, managed through the credit and collection measures outlined above, required continuous operational vigilance amid shifting consumer confidence and demand.

Corporate Governance

The Board of Directors, Audit Committee, and Team Management are committed to strengthening corporate governance within the company.

Declaration

The CEO of the Company hereby individually accepts responsibility for the accuracy of the information and the details contained in this report. I declare that there are no false or misleading statements or material facts. The omission of any statement that might affect investors' decisions has been avoided.

Saurav Karanjeet

CEO

(17,123,246) 37,711,742 15,804,027

- (613,516) -

97,482,706 137,048,981 64,274,155

52,056,168 34,820,092 42,715,316

10,487,136 10,831,287 8,379,165

87,436,070 53,032,233 35,832,328

(52,496,668) 38,365,369 (22,652,654)

10,504,626 10,592,370 7,457,933

22,506,794 22,344,528 17,348,746

(85,508,088) 5,428,469 (47,459,333)

- - -

(28,238,425) 2,998,000 (12,102,130)

- - -

(57,269,663) 2,430,469 (35,357,203)

- - -

- - -

- - -

(57,269,663) 2,430,469 (35,357,203)

This Quarter Ending Ashad 2083 Corresponding Previous Year Quarter Ashad 2082 Previous Quarter Ending Chaitra 2082

(7.89) 0.42 (6.49)

2.10 1.60 1.71

-3.72% 0.19% -2.39%

119.96 140.02 127.08

had end 2083 as per Annexure 14, Rule 26(1)

nd Issue Regulations, 2073

Management remains focused on enhancing financial performance and ensuring steady growth in both revenue and profitability. Share

6.68 million. The price-to-book ratio stood at 17.34 times.

us year (NPR 429.15 million), supported by portfolio expansion, strengthened distributor partnerships, and growing consumer acceptance a significant increase in employee benefit expenses and selling and distribution expenses, together with elevated finance costs, resulted The management views the year's elevated investment in market infrastructure, human capital, and brand activation as foundational to d, remittance inflows and foreign exchange reserves at healthy levels, and the new government's reform-oriented budget for FY 2083/84 cies, rationalizing costs, and accelerating market penetration and profitability in the coming year.

year-on-year (NPR 453.46 million), reflecting higher credit exposure in new markets and a lengthening of the operating cycle. To address ent, which will improve receivable turnover and reinforce working-capital control. These measures are intended to stabilize collections,

d areas. Enhanced logistics and distributor capabilities enabled better service levels, on-shelf availability, and incremental market share h and an improved product mix, even as bottom-line profitability was pressured by the elevated cost base.

mpany and the broader liquor industry in Nepal. Sagar Distillery remained committed to navigating these pressures while sustaining its

ess awareness, and a shift toward lower-frequency, occasion-led consumption behaviour. These trends were particularly visible in urban sification. Sagar Distillery is addressing this through innovation in product formats, premiumization of its brand portfolio, presence in right

and building, disproportionately benefiting legacy players and limiting newer entrants like Sagar from rapidly scaling awareness. These layers, who leverage economies of scale, aggressive trade investments, and extensive distribution networks.

d country dependent on imported fuel routed through India, Nepal saw repeated fuel price increases and intermittent supply shortages er crude-linked input costs also fed directly into raw material prices. Together, these contributed to the year's higher cost of goods sold ues to monitor global energy markets closely.

g the Falgun 2082 general election, the new government's subsequent budget for FY 2083/84 - a reform-oriented plan targeting around ined, and steady remittance inflows together with healthy foreign exchange reserves provided external-sector stability. At the same time, absorbed a further increase in excise duty on alcoholic beverages under the Finance Bill for FY 2082/83, adding to sector-wide cost d continued active monitoring, and the company remains optimistic that sustained political and policy stability will translate into stronger

mpany.

s statement. The CEO also declares that the information provided herein, to the best of his knowledge and belief, does not contain any