Morison Sri Lanka June quarter profits fall on lower sales

ECONOMYNEXT – Net profits at Morison Plc, a Sri Lankan pharmaceuticals firm, fell 75.3 percent from a year earlier to 19 million rupees in the June quarter, amid a slowdown in revenue, the firm said in its interim financial report.

Earnings per share at the firm which produces and imports pharmaceuticals, healthcare and personal care products was 2.51 rupees in June. The firm’s share closed trading on Thursday at 750.10 rupees.

Group revenue fell 21 per cent from a year earlier to 666.1 million rupees in the June quarter from a year earlier and cost of sales fell 17 percent to 465.5 million rupees, leading to gross profits declining 29 percent to 200.7 million rupees.

Morison’s consumer product segment sales 28.4 percent to 177.2 million rupees in the June quarter from a year earlier, while the pharmaceuticals segment sales fell 18 percent to 488.9 million rupees.

The group’s finance costs grew 69 percent to 3.7 million rupees, while finance income fell 53 percent to 15.4 million rupees.

Morison’s long-term interest bearing borrowings were 202.8 million rupees, up from 42 million rupees three months earlier.

Morison is currently building a pharmaceuticals manufacturing and research facility in Homagama, expected to become operational in 2020.

Meanwhile, short-term loans grew to 300 million rupees from none three months earlier. 

The group asset base grew to 5.7 billion rupees in June from 5.3 billion rupees in March. (Colombo/ July 26/ 2019)

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