Ceylon Cold Stores Group second quarter which ended in September saw the revenue increasing by 24.0% Year of Year to Rs. 8.1 billion from Rs. 6.5 billion reported last year.
This is growth was primarily due to volume growth mainly from beverages followed by ice cream sales. During 1Q16, the revenue demonstrated a 16.% yoy increase to Rs 7.8bn. Therefore, from a qoq basis also CCS.N0000 demonstrated a 4.1% increase.
The management revealed this growth was purely on the back of a volume growth. The company has not increased any prices during the quarter. Therefore, the growing demand from increased inclination to consumption of beverages as well as ice cream due to increased spending power of the mass has resulted in a revenue growth yoy.
Further, as per the company the volume push for chilled beverages and ice creams during the reported quarter enabled the company to register increased revenue levels even with a cold weather climate reported with rains setting in during the month of September.
Further, a slight favouration was experienced during the quarter with the main competitor Coca-Cola beverages was under scrutiny by the regulators due to a oil spill to the Kelani river which resulted in a temporary production halt.
Cost of sales also increased by approximately by 19.% yoy to Rs 6.8b from Rs 5.7b reported an year ago. This was primarily due to an expansion in the volumes produced and sold.
Gross Profit expanded by approximately by 59.9% yoy to Rs 1.35b from Rs 851.8mn. Further, the current quarter the Gross profit margin expanded from 13.0% reported an year earlier to 16.7% in 2Q16. Further, this was an increase qoq basis as well as the 1Q16 Gross profit margin was 15.2%. Therefore, the increase in volumes which resulted in economies of scale has enabled the company to report improved gross profit despite along with stable price levels of many production inputs.
www.dailynews.lk
This is growth was primarily due to volume growth mainly from beverages followed by ice cream sales. During 1Q16, the revenue demonstrated a 16.% yoy increase to Rs 7.8bn. Therefore, from a qoq basis also CCS.N0000 demonstrated a 4.1% increase.
The management revealed this growth was purely on the back of a volume growth. The company has not increased any prices during the quarter. Therefore, the growing demand from increased inclination to consumption of beverages as well as ice cream due to increased spending power of the mass has resulted in a revenue growth yoy.
Further, as per the company the volume push for chilled beverages and ice creams during the reported quarter enabled the company to register increased revenue levels even with a cold weather climate reported with rains setting in during the month of September.
Further, a slight favouration was experienced during the quarter with the main competitor Coca-Cola beverages was under scrutiny by the regulators due to a oil spill to the Kelani river which resulted in a temporary production halt.
Cost of sales also increased by approximately by 19.% yoy to Rs 6.8b from Rs 5.7b reported an year ago. This was primarily due to an expansion in the volumes produced and sold.
Gross Profit expanded by approximately by 59.9% yoy to Rs 1.35b from Rs 851.8mn. Further, the current quarter the Gross profit margin expanded from 13.0% reported an year earlier to 16.7% in 2Q16. Further, this was an increase qoq basis as well as the 1Q16 Gross profit margin was 15.2%. Therefore, the increase in volumes which resulted in economies of scale has enabled the company to report improved gross profit despite along with stable price levels of many production inputs.
www.dailynews.lk
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