Sri Lanka Carson group December quarter net down 32-pct
EconomyNext – Sri Lanka’s Carson Cumber batch group December 2014 quarter net profit fell 32 percent to 754 million rupees from a year ago as earnings from its main oil palm and oils and fats businesses fell.
Unaudited results filed with the stock exchanged reported quarterly earnings per share of 3.84 rupees with sales up five percent to 22.6 billion rupees.
For the nine months ended 31st December 2014, the group reported EPS of 12.67 rupees with net profit up 185 percent to 2.5 billion rupees as sales rose 18 percent to 65 billion rupees.
The group’s businesses range from oil palm plantations in Malaysia and Indonesia, palm oil refining in Malaysia and India to breweries, investment holdings, portfolio and assets management, real estate and leisure in Sri Lanka.
A statement said in the group’s ‘Oils & Fats Sector’ Malaysian operations showed improved performance during the third quarter of the current financial year, with improved sales volumes as well as gross margins with the onset of the peak season for specialty fats.
"However, the Indian operations were significantly affected by fluctuating Crude Palm Oil prices as the negative impact of price changes – higher pre-contracted prices versus
comparatively lower market prices at delivery point – cannot be passed on to the customer."
The statement said any reduction in CPO prices subsequent to placement of import orders at a set price is borne by the company.
It said that in the nine month period group operating profit almost doubled to 9.26 billion rupees from a year ago spearheaded by strong growth in the oil palm plantation business and a significantly lower foreign exchange loss.