C T Holdings June Quarter profits falls on higher finance costs

 ECONOMYNEXT – Net profits at Sri Lanka’s CT Holdings Plc, diversified group, fell 33 percent from a year earlier to 375.6 million rupees in the June quarter on higher finance costs, the firm’s interim financials showed.

 
The firm, which is involved in cinemas, real estate, finance and fast moving consumer goods posted 1.86 rupees in earnings per share in June. The CT Holding share last closed at 172 rupees.
 
Group revenue grew 6 percent from a year earlier to 26.1 billion rupees in the June quarter from a year earlier while cost of sales grew at a lower 5 percent to 22.8 billion rupees and gross profits grew at a faster 14 percent to 3.3 billion rupees.
 
The group’s finance costs grew 88 percent to 712 million rupees, as the firm switched to the SLFRS 16 accounting standard on operating leases, which many of its Cargills supermarkets hold.
 
Group’s long-term interest bearing borrowings were 8.4 billion rupees, up from 29.6 million rupees three months earlier, due to accounting for operating leases in the balance sheet under SLFRS 16, which also increased right of use assets by a similar amount. 
 
Meanwhile, short-term borrowings grew to 14.9 billion rupees from 14 billion rupees three months earlier. 
 
The group asset base grew to 29.7 billion rupees in June from 29.3 billion rupees in March. 
 
CT Holdings’ retail and wholesale trade segment operating profits grew to 731.4 million rupees in June from 674.4 million rupees a year earlier.
 
Consumer good manufacturing operating profits grew to 837.8 million rupees from 618.7 million rupees.
 
The entertainment segment, which includes the group’s cinemas, posted 38.8 million rupees in losses, growing from a 7 million rupee loss.
 
Real estate segment profits fell to 106.5 million rupees from 118 million rupees.  (Colombo/ August 20/ 2019)