Distilleries Company of Sri Lanka profits up in Dec on lower input costs
ECONOMYNEXT- Distilleries Company of Sri Lanka Plc (DCSL) posted 1.47 billion rupees in net profits for the December quarter, rising 14.5 percent from a year earlier on cheaper raw materials, interim financials showed.
DCSL, a unit of Harry Jayawardena’s Melstacorp Plc, earned 32 cents per share for the quarter. The firm’s share had closed trading at 17.90 rupees on Monday.
For the nine months ending December DCSL earned 97 cents per share on profits of 4.47 billion rupees, up 25.9 percent from a year earlier.
The firm had paid 14.65 billion rupees in sales taxes for the quarter, up from 13.85 billion rupees.
December quarter net revenue was up 7.5 percent to 7.58 billion rupees on the annual alcohol price revisions.
Cost of sales grew at a slower 2.3 percent to 4.58 billion rupees on sourcing of ethanol from local suppliers, and consumers switching to products which have lower raw material costs.
Gross profits rose 16.6 percent to 3 billion rupees.
DCSL’s financial costs fell 40.3 percent to 56.18 million rupees
Short term loans at end-December were up to 5.28 billion rupees from 4.62 billion rupees at the start of the financial year nine months earlier.
The firm’s total assets fell to 22.64 billion rupees from 25.79 billion rupees over the nine months.
The government has banned import of ethanol with effect from January 01.
Income taxes on alcohol producers were also slashed to 28 percent from 40 percent in January, which will help profits in the current quarter.