Distilleries Company of Sri Lanka net up 56-pct

ECONOMYNEXT – Profits at Distilleries Corporation of Sri Lanka Plc, the island’s largest alcohol producer, grew 56 percent to 1.66 billion rupees in the December 2019 quarter from a year earlier, helped by lower raw material costs, interim accounts showed.

The firm reported earnings of 36 cents per share for the quarter.

Gross revenues with taxes grew 4.5 percent to 20.0 billion rupees.

Net revenues grew 10.4 percent to 7.095 billion rupees while cost of sales dropped 8.6 percent to 3.84 billion rupees, helping the firm grow gross profits 46.5 percent to 3.2 billion rupees.

Cost of sales can fall when the availability of domestic raw materials increase, those familiar with the industry say.

Distilleries Corporation of Sri Lanka Chairman Harry Jayawardena had warned that high taxes were promoting illegal moonshine, and weak enforcement and control of retail licenses by some manufacturers and was promoting tax unpaid sales of alcohol through legal outlets.

Unspecified other operating income trebled to 94 million rupees from 31 million a year earlier. Income tax grew 48 percent to 1.13 billion rupees. (Colombo/Aug15/2019)