BNT
Bottlers Nepal (Terai) Q4 Results: Revenue Decline and Heavy Losses Despite Strong Market Value
Bottlers Nepal (Terai) (BNT) posted Q4 revenue of Rs. 7.70 billion (-7.77% YoY) with gross profit of Rs. 1.74 billion (22.61% margin). However, the company reported a net loss of Rs. 607.57 million, reversing from a profit of Rs. 360.86 million last year. EPS collapsed to -Rs. 502.13, with ROE at -14.96%. Despite weak fundamentals, the stock trades at Rs. 12,800 vs. book value Rs. 2,920.77, showing investor confidence in its long-term brand power. Dividend for FY 2024/25 is pending.
Sandeep Chaudhary
1 min read
Bottlers Nepal (Terai) Ltd. (BNT) has released its audited financial results for the fourth quarter of FY 2024/25, showing a steep decline in revenue and profitability, leading to significant losses, despite maintaining a premium stock market valuation.
The company posted a total revenue of Rs. 7.70 billion in Q4, down 7.77% year-on-year compared to Rs. 8.79 billion in Q4 of FY 2023/24. Revenue also slipped sequentially from Rs. 4.97 billion in Q3 and Rs. 3.00 billion in Q2, reflecting weaker sales momentum across the fiscal year.
The gross profit stood at Rs. 1.74 billion, yielding a gross margin of 22.61%, lower than last year’s 25.19%. While still profitable at the operating level, declining sales volumes and cost pressures eroded margins compared to historical performance.
Net earnings turned sharply negative. The company recorded a net loss of Rs. 607.57 million in Q4, a significant reversal from Rs. 360.86 million profit in Q4 last year and Rs. 80.75 million profit in Q3. The net profit margin plunged to -7.89%, reflecting weak demand and higher costs weighing heavily on bottom-line results.
Return ratios turned negative as well. Return on Assets (ROA) dropped to -6.26%, compared to +3.58% in Q4 last year, while Return on Equity (ROE) fell sharply to -14.96%, from +8.98% in the same period last year.
On a per-share basis, EPS (annualized) fell drastically to -Rs. 502.13, a sharp decline from Rs. 298.23 a year ago and Rs. 88.99 in Q3. The reported PE ratio stood at -25.49, reflecting negative earnings.
From a balance sheet perspective, the book value per share was Rs. 2,920.77, while the market value per share surged to Rs. 12,800.00, more than 4x book value. Despite operational losses, investors continue to assign a strong premium, possibly due to the company’s dominant brand value and long-term positioning in the beverage sector.
Dividend for FY 2024/25 has not yet been announced. Last year, BNT distributed Rs. 50 per share.
Written by
Sandeep Chaudhary