The financial statements of real sector companies indicate a grim picture of Nepal’s economy, with declining trade pushing several firms into losses. Among the nine publicly listed companies in this sector, five have reported deteriorating financial positions.
In the first six months of the current fiscal year, four companies recorded losses, while one saw a decline in profit. Meanwhile, four companies managed to increase their earnings. As of mid-January, only Unilever Nepal, Himalayan Distillery, Nepal Lube Oil, and Sarbottam Cement reported profit growth.
Bottlers Nepal’s two subsidiaries continue to struggle, with Bottlers Nepal Balaju incurring a loss of Rs 245 million and Bottlers Nepal Terai facing a Rs 119 million loss. In contrast, Unilever Nepal saw a 13.49 percent rise in net profit, reaching Rs 477.8 million. Himalayan Distillery posted a remarkable 147.42 percent increase in profit, amounting to Rs 404.9 million. In the cement sector, Shivam Cement’s profit dropped sharply by 61.77 percent to Rs 56.8 million, while Ghorahi Cement and Sonapur Minerals reported losses of Rs 667.1 million and Rs 122.1 million, respectively. Sarbottam Cement, however, recorded an impressive 689.21 percent surge in profit, reaching Rs 241.4 million, driven by a 36 percent increase in trade volume.
Revenue figures reflect these struggles. Bottlers Nepal Balaju saw a 5 percent decline in revenue, while Bottlers Nepal Terai faced a sharper 20 percent drop. Unilever Nepal posted a 5 percent revenue increase, while Himalayan Distillery recorded a 60 percent surge. Shivam Cement’s revenue fell by 12 percent, whereas Ghorahi Cement’s remained almost unchanged. Sonapur Minerals saw a 30 percent increase in revenue, while Nepal Lube Oil and Sarbottam Cement registered growth of 6.19 percent and 36 percent, respectively.
The sluggish construction sector has weakened cement demand, contributing to the losses of Ghorahi Cement and Sonapur Minerals. Despite this, Sarbottam Cement managed a significant profit boost. The broader economic slowdown has impacted trade activity, leaving many real-sector companies struggling to maintain profitability.
