Sunshine Group performed well during 9M 2014/15 posting a PAT Rs. 840 million

Sunshine Group performed well during 9M 2014/15 posting a PAT Rs. 840 million, an increase of 8% YOY, on the back of 14% growth in revenue. 

The Group recorded a consolidated Revenue of Rs. 12.2 billion for the nine months 31st December 2014, a growth of 14% YoY compared to the same period last year. Group EBIT closed at Rs.1.3 billion in comparison to Rs. 1.1 billion recorded the previous period, posting a growth of 13%. 

Group revenue was largely driven by the Healthcare, Agri and FMCG sectors which recorded growths of 11%, 17% and 18% respectively, whilst Group operating profits were boosted by Agri sector. 

Healthcare reported Revenue growth, posting Rs. 4.5 billion, compared to Rs. 4.0 billion for the last period. PAT was Rs. 174 million compared to Rs. 242 million for the same period last year. Goodwill written off amounting to Rs. 62 million negatively impacted PAT for 9M 2014/15. Normalized Healthcare PAT amounted to Rs. 236 million. 

Agri sector has shown strong Revenue & PAT growth during the 9M 2014/15. Revenue has increased 17% YoY to Rs. 5.3 billion, compared to Rs. 4.5 billion during the same period last year. PAT grew 32% to post Rs. 409 million in 9M 2014/15 against Rs. 311 million in the same period last year. 

FMCG revenue stood at Rs. 2.1 billion for 9M 2014/15 up 18% YoY, and PAT grew by 13% YoY to stand at Rs. 254 million. 

Power sector revenue for 9M 2014/15 was flat at Rs. 88 million compared to Rs. 89 million. The sector has recorded PAT of Rs. 20 million compared to Rs. 5.4 million recorded in 9M 2013/14. 

The packaging sector revenue contracted by 12% YoY to stand at Rs. 186 million. The sector made a loss of Rs. 19 million for the 9M 2014/15. 

Further, Profits attributable to equity shareholders of Sunshine Holdings PLC Decreased 5% YoY to stand at Rs. 408 million for 9M 2014/15. EPS for 9M 2014/15 stood at Rs. 3.05 per share, compared to Rs. 3.20 per share for the same period last year.

Sri Lanka shares hit 5-month low after govt's retrospective tax plan

Feb 2 (Reuters) - Sri Lankan shares fell to over five-month lows on Monday due to panic selling in blue-chips, led by John Keells Holdings Plc as concerns over future earnings weighed on sentiment after the government raised taxes on cash-rich firms.

The index has fallen 5.10 percent since Sri Lanka's new government on Thursday announced a budget that imposed a one-time 'super gain tax' of 25 percent on companies or individuals who earned over 2 billion rupees profits in 2013/2014.

The main stock index, ended 2.51 percent, or 179.99 points, down at 7,000.06, its lowest since Aug. 28.

The day's fall erased market capitalisation by 76.3 billion rupees ($577.2 million) on Monday after erasing 83.2 billion on Friday. The market is valued at 2.97 trillion rupees as on Monday.

"There was lot of panic selling, Keells is the main reason for today's fall," said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

"Still it's not clear how the super gain tax is going to be charged," he said.

Shares in conglomerate John Keells Holdings Plc fell 6.22 percent, while biggest listed lender Commercial Bank of Ceylon Plc declined 4.34 percent, and Dialog Axiata Plc fell 6.67 percent.

Analysts said the market would continue to fall on 'super gain tax' worries and the reaction of foreign investors would be the key.

Foreign investors were net sellers of 180.4 million rupees worth of shares on Monday, turning the year to date net foreign trade to an outflow of 60.23 million rupees. They bought a net 22.07 billion rupees worth of stocks last year.

Analysts said the market would trade lower in the coming days on selling in top conglomerate John Keells Holdings , Dialog Axiata, Sri Lanka Telecom, Ceylon Tobacco Co and Nestle as they would have to pay the new tax.

After the market closed on Friday John Keells posted a 28 percent gain in its third quarter net profit.

Analysts, however, expect the raft of tax concessions and salary hikes in the budget to increase consumers' disposable income and help the market rally over the long term.

Turnover was 1.3 billion Sri Lankan rupees ($9.83 million), less than last year's daily average of 1.42 billion rupees, exchange data showed.

Markets will be closed for a Buddhist and Independence Day holidays on Tuesday and Wednesday respectively. Normal trading will resume on Thursday. 

($1 = 132.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Bartleet Finance now Janashakthi subsidiary

Janashakthi Limited has purchased 6,639,998 ordinary voting shares of Bartleet Finance PLC, which is 86.79 per cent of the voting rights held by Bartleets Transcapital Limited, at a total price of Rs. 874,818,419.

Janashakthi Limited already held 993,749 ordinary voting shares of Bartleet Finance PLC (approximately 12.99% voting right) at the time of this acquisition on 22 January 2015.

According to the latest acquisition Janashakthi Limited holds approximately 99.78 per cent voting rights of Bartleet Finance PLC. Thus, Bartleet Finance PLC will be a subsidiary of Janashakthi Limited from 22 January 2015.
www.adaderana.lk

EPF contemplates divesting some capital market investments

By Chandeepa Wettasinghe The Employees’ Provident Fund (EPF), the largest state-run private sector pension fund may divest its holdings in commercial banks and certain other companies trading in the Colombo Stock Exchange, newly appointed Central Bank Governor Arjuna Mahendran told a recent forum. 

“I wouldn’t want to jump the gun and divest these immediately, though it is desirable, because we have to have more liquidity in the public markets for these bank shares, and indeed all the other shares which have been acquired by the government through the EPF in the last few years,” Mahendran t old a Post Budget Seminar organized by Ceylon Chamber of Commerce last week. 

He was responding to criticism leveled by Aitken Spence Director Dr. Parakrama Dissanayake, who was in the audience, of the Central Bank as the regulator, controlling the listed commercial banks through EPF and several other state-run entities. 

Mahendran agreed t hat such investments constitute a blatant conflict of interest, and noted that investigations would be launched into such investments. According to section 2.6.2.2 of the Investment Policy Statement and Standards of Professional Conduct of the EPF, the fund cannot invest in the banking sector and equities of financial nature, while only blue chip companies could be invested in, to minimize risk. 

Apart from the banking sector stocks, EPF made highly controversial investments in companies such as Ceylon Grain Elevators, Bairaha Farms, Galadari Hotel and Light House Hotel, at premium rates, during the past few years. 

“Now that the government holds these shares, which they shouldn’t have in the first place, unravelling that would have to involve institutions like the SEC. Now that Thilak Karunaratne is in the saddle, I’m sure he would do an excellent job in unravelling whatever stuff that went on behind the scenes,” Mahendran said. 

Specially during 2010 to 2012 period, allegations were leveled against certain parties and high net worth investors of dumping pumpedup shares to EPF at premium prices. 

Policy Planning and Economic Development Deputy Minister Dr. Harsha de Silva while in the opposition, in 2011, claimed that over Rs.270 million was lost in just one week from equity dealings. 

Yet, according to a Central Bank statement in November 2014, EPF had accrued Rs.6.7 billion in profits from share dividends, debenture interest and capital gains since January 2014.

www.dailymirror.lk

Dhammika, Ravi to close down their casinos in Sri Lanka

With the new government’s interim budget deciding to impose a special tax of Rs. 1,000 million (Rs. 01 billion) from casino owners for each of their gaming centres, Sri Lankan businessmen Dhammika Perera and Ravi Wijeratne who have established several casinos in the island have decided to close down their gaming centres, www.adaderanabiz.lk learns from very reliable sources.

Dhammika Perera, considered the wealthiest person in Sri Lanka who owns three casino licenses has decided to close down two of them and continue with only the casino situated at D.R. Wijewardene Mawatha in Colombo.

Meanwhile, www.adaderanabiz.lk learns that another prominent Sri Lankan businessman Ravi Wijeratne is preparing to close down one of the two casinos owned by him.

According to the interim budget, each casino owner has to pay a special tax of Rs. 1,000 million for each casino license owned on before 15 April this year and the government expects a revenue of Rs. 05 billion through this.

Meanwhile, with the new government blocking casino business activities in Sri Lanka, Australian businessman James Packer too has stopped his hotel project with casinos in Colombo.

According to information, there are around 1,964 persons employed at Dhammika Perera’s casinos.
www.adaderana.lk

JKH, PBT at 5.42bn in 3Q

John Keells Holdings Group posted a profit before tax (PBT) at Rs.5.42 billion in the third quarter of the financial year 2014/15, an increase of 27 per cent over the corresponding Rs.4.27 billion recorded in the previous financial year.

The PBT for the first nine months of the financial year 2014/15 at Rs.12.16 billion is an increase of 33 per cent over the Rs.9.11 billion recorded in the corresponding period of the last financial year said Chairman Susantha Ratnayake.

The profit attributable to equity holders for the third quarter at Rs.4.33 billion reflects an increase of 28 per cent over the corresponding Rs.3.39 billion in the previous year, while the performance for the first nine month at Rs.9.13 billion reflects an increase of 30 per cent over the corresponding Rs.7.04 billion recorded in the last financial year.

The revenue at Rs.25.47 billion in the third quarter of the financial year 2014/15 is an increase of 9 per cent over the corresponding Rs.23.47 billion recorded in the previous financial year. The revenue for the first nine months of the financial year 2014/15 at Rs.68.92 billion is an increase of 7 per cent over the Rs.64.21 billion recorded in the corresponding period of the last financial year.

The Company PBT for the third quarter of the financial year 2014/15 at Rs.2.33 billion is an increase of 8 per cent over the corresponding Rs.2.17 billion recorded in the previous financial year, while the PBT for the first nine months of the financial year at Rs.6.39 billion is an increase of 38 per cent over the corresponding Rs.4.62 billion recorded in the financial year 2013/14. The Transportation industry group PBT of Rs.727 million in the third quarter of 2014/15 is an increase of 35 per cent over the third quarter of the previous financial year.

The Leisure industry group PBT of Rs.1.40 billion in the third quarter of 2014/15 is a decrease of 9 per cent over the third quarter of the previous financial year.

The Sri Lankan Resorts sector, recorded an increase in profitability, aided by the growth in tourist arrivals. The Consumer Foods and Retail industry group PBT of Rs.583 million in the third quarter of 2014/15 is an increase of 156 per cent over the third quarter of the previous financial year

The Property industry group PBT of Rs.376 million in the third quarter of 2014/15 is an increase of 8 per cent over the third quarter of the previous financial year.

Ceylon Cold Stores witnessed an increase in profitability, aided by its evolving product mix amidst improving consumer sentiment and changing consumption patterns. The Information Technology industry group PBT of Rs.120 million in the third quarter of 2014/15 is an increase of 38 per cent over the third quarter of the previous financial year.
www.dailynews.lk

Inflation up 3.2% in January

The Central Bank on Friday said inflation in January 2015 as measured by the change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics, increased to 3.2% in January 2015 from 2.1% in December 2014, on a year-on year basis, as a result of the increase in food prices.
Annual average inflation declined marginally from 3.3% recorded in December 2014 to 3.2% in January 2015.

The monthly change in CCPI in January 2015 was 1.7%, mainly due to the increase in fresh food items. Particularly, prices of all vegetable varieties, green chilies, big onions, red onions, potatoes, eggs and coconuts increased during the month.

The Non-food category, Clothing and Footwear, Recreation and Culture, Education and Miscellaneous Goods and Services sub groups recorded increases in average prices, while Furnishings, Household Equipment and Routine Household Maintenance; Health and Communication sub groups remained unchanged during the month.

Nevertheless, reflecting the downward revision of fuel prices, average prices in housing, water, electricity, gas and other fuels and transport sub groups declined. As a result of these developments, average prices in the Non-food category declined on an overall basis.

Core inflation, which reflects the underlying inflation in the economy, declined from 3.2% in December 2014 to 2.1% in January 2015 on a year-on-year basis. Annual average core inflation during January 2015 was 3.4%, compared to 3.5% recorded in December 2014.

www.ft.lk