ECONOMYNEXT – Sri Lanka’s Cargills (Ceylon) said net profit fell two percent to Rs751 million in the June 2017 quarter from a year ago with a sharp increase in finance costs owing to higher borrowing expenses.
Sales of the group, part of CT Holdings, rose nine percent to Rs22.9 billion over the period, according to interim results filed with the stock exchange.
Diluted earnings per share were Rs3.30. The Cargills (Ceylon) share last traded at Rs198.
A note accompanying the accounts said the performance of the group during the period “was satisfactory in light of the weak consumption environment, and external weather challenges including flooding and landslides, and a severe drought that continues to impact the Eastern, North Central and North Western Provinces.”
It said that group net finance costs increased 86.2% to Rs367 million in the June quarter from a year ago because of the increase in group debt and rise in market interest rates.
Share of associate profit rose to Rs14.1 million for the quarter, compared with a loss of Rs29 million the previous year on account of the performance of associate Cargills Bank.
Cargills (Ceylon) said its retail business sales grew 9.2% to Rs.18.2 billion while operating profit grew 7.6% to Rs.896 million.
“Cargills successfully kept prices of key essentials below market prices in spite of rising inflation during the quarter,” the company said.
“Cargills Food City added five new outlets during the quarter, taking the total number of outlets to 320 as at 30th June 2017. The pace of expansion is targeted to increase through the financial year.”
The group’s FMCG business sales grew 7.7% to Rs.3.8 billion during the June quarter from a year ago with operating profit up 10% to Rs.616 million.
“The FMCG business has enhanced market share amidst what have been tight market conditions,” the company said.
Sales of the group, part of CT Holdings, rose nine percent to Rs22.9 billion over the period, according to interim results filed with the stock exchange.
Diluted earnings per share were Rs3.30. The Cargills (Ceylon) share last traded at Rs198.
A note accompanying the accounts said the performance of the group during the period “was satisfactory in light of the weak consumption environment, and external weather challenges including flooding and landslides, and a severe drought that continues to impact the Eastern, North Central and North Western Provinces.”
It said that group net finance costs increased 86.2% to Rs367 million in the June quarter from a year ago because of the increase in group debt and rise in market interest rates.
Share of associate profit rose to Rs14.1 million for the quarter, compared with a loss of Rs29 million the previous year on account of the performance of associate Cargills Bank.
Cargills (Ceylon) said its retail business sales grew 9.2% to Rs.18.2 billion while operating profit grew 7.6% to Rs.896 million.
“Cargills successfully kept prices of key essentials below market prices in spite of rising inflation during the quarter,” the company said.
“Cargills Food City added five new outlets during the quarter, taking the total number of outlets to 320 as at 30th June 2017. The pace of expansion is targeted to increase through the financial year.”
The group’s FMCG business sales grew 7.7% to Rs.3.8 billion during the June quarter from a year ago with operating profit up 10% to Rs.616 million.
“The FMCG business has enhanced market share amidst what have been tight market conditions,” the company said.
No comments:
Post a Comment