Bottlers Nepal (Balaju) Q4 Results: Revenue Slips and Heavy Losses Despite Strong Brand Premium

Published on August 22, 2025

Bottlers Nepal (Balaju) Ltd. (BNL), one of the key Coca-Cola bottling units in Nepal, has published its audited Q4 financial results for FY 2024/25, revealing revenue contraction, mounting losses, and declining profitability, even as its stock continues to trade at a significant premium.

The company reported a total revenue of Rs. 10.96 billion in Q4, down 4.54% year-on-year compared to Rs. 11.25 billion in Q4 of FY 2023/24. Sequentially, revenue showed mild growth over Q3 (Rs. 7.10 billion) but remains below past levels, reflecting demand challenges and cost-side pressures.

The gross profit stood at Rs. 2.73 billion, with a gross margin of 24.88%, slightly weaker than last year’s 26.12%. Margins fluctuated during the year, peaking at 26.66% in Q1, before slipping as raw material and operating costs weighed on performance.

BNL’s net earnings turned sharply negative. The company posted a net loss of Rs. 400.60 million in Q4, compared to a profit of Rs. 395.86 million in Q4 of last year. This marks a reversal from the small profit of Rs. 15.98 million in Q3 and the Rs. 84.38 million profit in Q1. The net margin collapsed to -3.65%, from +3.52% in the same quarter last year.

Return ratios turned negative as well. Return on Assets (ROA) stood at -2.76%, compared to +2.67% last year, while Return on Equity (ROE) dropped to -6.16%, compared to +6.29% in Q4 last year.

Per-share earnings weakened considerably. EPS (annualized) slumped to -Rs. 205.55, compared to +Rs. 203.12 in Q4 of last year and Rs. 10.93 in Q3. The reported PE ratio stood at -85.13, reflecting the company’s loss-making performance.

Despite weak fundamentals, investor sentiment remains strong. The book value per share stood at Rs. 3,184.34, while the market value per share traded at Rs. 17,498.00, more than 5.5x book value, reflecting confidence in Coca-Cola’s dominant market brand and long-term growth potential in Nepal’s beverage sector.

Dividend for FY 2024/25 has not been declared yet. Last year, BNL did not announce any payout amid rising operational challenges.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

Prabhu Insurance (PRIN) has published its audited Q4 2024/25 results, showing weaker performance compared to last year. The company’s total revenue fell by 25.70% YoY to Rs. 962.10 million, while net income dropped sharply by 56.8% to Rs. 211.96 million. Profit margins compressed, with net margin declining to 22.03% from 48.47% a year ago. Similarly, returns weakened as ROA slipped to 3.24% and ROE to 6.38%, both well below last year’s levels. Earnings per share also fell significantly to Rs. 14.70 from Rs. 34.05, while the P/E ratio jumped to 61.89, indicating the stock remains highly valued despite reduced profitability. On the balance sheet side, book value per share improved to Rs. 325.91, and the market value per share closed at Rs. 910, showing that PRIN trades at nearly 2.8 times its book value. Operationally, the company issued 123,873 policies, almost flat YoY, while renewed policies rose 27.95%. Claims paid fell by 24.96%, but outstanding claims increased, raising some concerns. Although PRIN had distributed Rs. 18.95 per share in dividend earlier, the steep decline in profitability could pressure future payouts. Overall, the insurer shows stable topline operations but is facing profitability and efficiency challenges despite maintaining high market valuations.

Soaltee Hotel Q4: Strong Revenue Growth, Stable Margins, and Robust Profitability

The book value per share stood at Rs. 27.15, while the market price surged to Rs. 577.58, trading at more than 21x its book value. This premium pricing suggests high investor confidence and brand strength. Dividend history remained stable, with SHL continuing its shareholder return policy — the company had distributed Rs. 36.84 per share previously.

Hathway Investment Nepal Q4: Revenue Jumps Sharply, Margins Stable, But Valuation Stretched

Hathway Investment Nepal reported Q4 revenue of Rs. 197.49 million (+275.88% YoY) and net income of Rs. 64.95 million (-22.67% YoY). Margins remain stable with 32.89% net margin, but ROA (2.39%) and ROE (3.08%) indicate moderate returns. EPS stood at Rs. 2.29, while the stock trades at a very high P/E of 531.92, signaling stretched valuations. Despite the revenue rebound, the absence of dividends this year contrasts with last year’s Rs. 10.53 payout.

NESDO Laghubitta Q4: Heavy NPL Pressure Drags Earnings into Red Despite Strong Revenue Base

NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

City Hotel Limited (CITY) reported Q4 FY 2024/25 revenue of Rs. 522.31 million (-9.09% YoY) but a net loss of Rs. 198.97 million. Gross profit margin stood at 28.77%, while net margin was deeply negative at -38.09%. ROA and ROE were -3.58% and -13.83% respectively. EPS came in at -Rs. 11.89, with book value declining to Rs. 80.83. Despite ongoing losses, CITY’s market value per share jumped to Rs. 873.65, suggesting that investors are pricing in long-term tourism recovery prospects.

Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

Standard Chartered Bank Nepal (SCB) reported Q4 FY 2024/25 revenue of Rs. 8.33 billion (-6.60% YoY) with net income of Rs. 3.03 billion (-8.4% YoY). Despite revenue pressure, profit margin strengthened to 36.33%, while ROE stood at 14.41%. Asset quality improved with NPLs down to 1.47% and provisioning coverage rising to 160%. EPS stood at Rs. 30.17, with a PE ratio of 21.75. The bank continues to maintain strong capitalization and liquidity, positioning itself as one of the most stable commercial banks in Nepal.

Prime Commercial Bank Q4 Results: Strong Profitability Despite Revenue Slowdown

Prime Commercial Bank (PCBL) reported Q4 FY 2024/25 revenue of Rs. 23.53 billion (-9.21% YoY) but improved profitability with net income of Rs. 4.02 billion (+6.6% YoY). Net profit margin strengthened to 17.10%. EPS rose to Rs. 20.74, while ROE stood at 12.55%. NPLs increased to 5.56%, but cost of funds fell to 5.21%, supporting better margins. Market value closed at Rs. 276.31 per share.

NIC Asia Bank Q4 Results: Weak Profit Growth Despite Solid Revenue Base

NIC Asia Bank (NICA) reported Q4 FY 2024/25 revenue of Rs. 28.81 billion (-29.12% YoY) and net income of just Rs. 161.57 million, down sharply from Rs. 1.38 billion a year earlier. Margins remained thin with net profit margin at 0.56%. ROE dropped to 0.54% and EPS to Rs. 1.08, reflecting weak earnings. Asset quality worsened as NPLs rose to 6.28%, though capital adequacy improved to 14%. Market value per share closed at Rs. 420.05.

Nepal Investment Bank Q4 Results: Strong Profitability Amid Revenue Decline

Nepal Investment Bank (NIMB) reported Q4 revenue of Rs. 36.10 billion (-11.22% YoY) but net income surged 29.9% to Rs. 6.75 billion, with margins strengthening to 18.72%. ROE stood at 10.57% and EPS at Rs. 19.80, reflecting robust profitability. NPL ratio inched up to 5.85%, but loan-loss coverage improved to 108.87%. Lower cost of funds and strong liquidity supported earnings. Market value per share rose to Rs. 231.02, highlighting investor confidence.