Retail and FMCG drives growth at CT Holdings

First Mini Mall opened in Gampaha, more to follow

CT Holdings PLC, originally Ceylon Theatres Ltd. founded by Sir Chittampalam. A. Gardiner nearly 90 years ago, has now grown into a conglomerate owning the Cargills Food City chain with over 300 outlets, financial services and real estate with group assets topping Rs. 57.8 billion, has reported a strong performance in the year ended March 31, 2017, with company profit after tax better than doubling to Rs. 1.3 billion from the previous year’s Rs. 568.9 million.

The group profit at Rs. 2.7 billion, though less spectacular in growth terms was comfortably up 15% over the previous year’s Rs. 1.6 billion, against the 128.3% bottom line growth at company level.

Expressing satisfaction at the performance of the group during the year, the company’s chairman, Mr. Louis Page, said in its annual report that they had focused on "steady continuous growth/improvement while sustaining the growth and profitability momentum of the past few years."

"Our overall performance confirms that the objectives for the year were largely met," he said.

The two largest business segments of the group are retail and FMCG (fast moving consumer goods) expanding since 1983 when its first supermarket was established into 300+ outlets countrywide. Given that modern trade penetration in the country is yet below 20%, Page said there were immense opportunities and they "looked forward to further prudent investment" in this sector in coming years.

"The FMCG sector covers dairy, meat, agribusiness and confectionery sub-sectors," Page noted. "These sub-sectors too showed continuous growth over the past few years."

"We believe that we have built and operate a base of food processing facilities capable of some of the best food products in the said categories. These facilities, together with the marketing capacity and our retail network could be used for further growth."

Although the original business of film importers, distributors, producers and cinema exhibitors that Sir. Chittampalam founded is today only a small part of the CT Holdings conglomerate, this business continues with the group having maximized the value of prime real estate on which the chain of Ceylon Theatres cinemas stood with the Majestic City mall developed on the 1.5 acre site of the old Majestic cinema and a high-end residential tower developed on the location of the former Empire cinema.

Page said that they will continue to establish Mini-Malls in key cities and suburbs in the Western Province, the first of which was opened in Gampaha last March. The group’s retail, restaurant and cinema brands will be the anchor tenants at these malls.

Profits during the year under review translated to an earning per share of Rs. 9.55 (group) up from Rs. 8.88 a year earlier and Rs. 7.09 (company) up from Rs. 3.11 the previous year. Net assets per share stood at Rs. 121.24. A dividend of Rs. 5.20 per share, up from Rs. 3.80 the previous year, was paid in the year under review.

CT Holdings has a stated capital of Rs. 3.19 billion with retained earnings of Rs. 11 billion in its books. Total assets ran at Rs. 57.9 billion and total liabilities at Rs. 35.66 billion.

Odeon Holdings (Ceylon) (Pvt) Ltd. controlled by Mr. Louis Page is the top shareholder of CT Holdings with 41.75% followed by Mr. Anthony Page (8.69%) and Mr. Ranjit Page (6.13%). The Sir. Chittampalam. A. Gardiner Trust owns 5.03% and Ms. MM Page 4.83%. Several other members of the Page family are among the top 20 shareholders. The EPF holds 3.82%.

The directors of the company are Messrs. Louis Page (Chairman), Ranjit Page (Deputy Chairman/MD) JBL de Silva, Priya Edirisinghe, Sunil Mendis, Mrs. Ceciliya Muttukumaru, Dr. A. Aravinda Page, Joseph Page, R. Selvaskandan, ADB Talwatte, Imtiaz Wahid and SC Niles (executive director). Mr. Anthony Page is Chairman Emeritus).www.island.lk