High coconut prices causes loss at Sri Lankaâ€™s Renuka Agri Foods
ECONOMYNEXT – Renuka Agri Foods, a Sri Lankan manufacturer of coconut-based food and beverage products, slipped into the red in the December 2017 quarter with a loss of Rs58 million owing to high prices of coconut, its main raw material.
The company, which had made a Rs75 million profit in the same quarter a year ago, reported December 2017 quarter sales rose 3.6% to Rs683 million.
Renuka Agri Foods made a loss per share of 10 cents in the December 2017 quarter, interim accounts filed with the Colombo stock exchange showed.
In the nine months to 31 December 2017, EPS was 12 cents, 74% lower than the previous year, with net profit at Rs70 million profit and sales at Rs2.2 billion.
Renuka Agri Foods Director Executive Shamindra Rajiyah attributed the downturn to high prices of coconut.
“The prevailing high coconut prices significantly increased the cost of raw materials, thereby eroding our Gross Profit percentage to single digits,” he said.
“The manufacturing sector continued to be the main contributor to revenue for the period under review by achieving a turnover of Rs. 2,249 million while the plantation sector recorded revenue of Rs 6 million for the period.”
(COLOMBO, February 08, 2018)