Kathmandu. CG Brewery, run by Chaudhary Group (CG Corp Global), is running at a loss due to high price competition.
Credit rating agency ICRA Nepal conducted a financial efficiency assessment for the purpose of bank loans. According to ICRA Nepal, the previous fiscal year 2080. In 1981, the burden of taxes, including excise duty, could not be transferred to the consumers.
According to the rating agency, the price could not be increased due to shrinking market demand and increased market competition.
Despite implementing promotional schemes such as trade discounts and cash discounts for business growth, its revenue slipped by 11 percent in the previous fiscal year.
With the increase in losses, its debt coverage ratio is also weakening. Its promoters had to invest extra because they did not have the ability to repay the loan. O E
Last fiscal year 2081 amidst intense market competition. In the third quarter of 2018-19, the business has increased by 16 percent compared to the previous fiscal year. ICRA Nepal has commented that although the profit margin has increased slightly in the nine-month period due to the increasing trade, it is yet to be seen.
Business dependent on 11 brands, 2:
Although CG Brewery produces beer in 11 different brands, 74 percent of its business depends on two brands. According to ICRA, the brewery earned Rs 1.97 billion from the sale of Nepal Ice and Mustang premium brands in the previous fiscal year. Both brands of beer are also being exported to Hong Kong, Japan, the UK, the US and Australia.
In the last fiscal year, its business has been shrinking continuously, but in the last fiscal year, there has been some improvement. The company’s business last fiscal year 2080. It was limited to Rs 2.66 billion in 81. Fiscal year 2079. 80 It totals 3.51 billion, 2078. 4.54 billion in 79 and 2077. It had a turnover of Rs 3.91 billion in 2018.
The company has received ‘ICRA NP A 4 Plus’ rating from ICRA Nepal against a loan rating of Rs 1.6 billion. This rating indicates that the company has the ability to meet short-term financial obligations.
Nirvana Chaudhary is the chairman of the board of directors of CG Foods Pvt Ltd, which owns 38 per cent stake in the company. The company has investments from three sister organisations and three promoters under the Chaudhary Group.
