Sri Lanka's Melstacorp to enter healthcare, manage hospitals
Aug 21, 2018 11:22 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's listed conglomerate Melstacorp Plc, the parent company of listed liquor producer Distilleries Company, said it was entering the healthcare industry, initially setting up diagnostic infrastructure and managing select hospitals.
"The company will be entering the healthcare industry shortly through subsidiaries incorporated to undertake such activities," the goup said in a stock exchange filing Tuesday.
The group has incorporated Melsta Health Private Limited for the purpose.
"This would involve management of hospitals, operating diagnostic centres and involvement in related healthcare institutions as and when the opportunity arises," it said.
The investment was not disclosed as Melstacorp said the investment did not amount to a major transaction.
Melstacorp was trading at 50 rupees a share Tuesday.
Melstacorp is the parent company of Distilleries Company of Sri Lanka and other businesses ranging from insurance, plantations, financial services and telecommunications.
According to latest financial results, profits fell 30.8 percent from a year earlier to 789.3 million rupees in the June 2018 quarter on rising finance costs from a surge in borrowings and losses in telecommunications and lower profits from financial services, with earnings amounting to 68 cents a share.
Revenue grew 102 percent to 20.8 billion rupees, cost of sales increased 75 percent to 13.3 billion rupees leading to a 178 percent increase in gross profits of 7.5 billion rupees.
Net finance cost surged 941 percent to 413 million rupees as borrowings increased to 26.7 billion rupees at end June 2018, from 3.6 billion rupees a year earlier.
The group's beverages segment which includes listed Distilleries saw revenue decline 10 percent from a year earlier to 20.8 billion rupees in the June 2018 quarter, but profits grew 31 percent to 1.7 billion rupees. (COLOMBO, 21 August 2018)