Sri Lanka Distilleries group net dragged down by telecom, plantations

ECONOMYNEXT – Profits at Sri Lanka’s Distilleries Company of Sri Lanka group fell 4.9 percent from a year earlier to 1.75 billion rupees in the June 2015 quarter despite a recovery in the core alcohol business, official data shows.

The group reported earnings of 5.85 rupees per share for the quarter. The stock closed at 304.90 rupees on August 14.

At the core alcohol business, revenues rose 36 percent to 15.3 billion rupees from a year earlier, which the firm said was due to tax increases and consolidation of value added tax to excise.

But net revenue also rose 19 percent to 4.6 billion rupees, with cost of sales rising 28 percent to 2.4 billion rupees, helping gross profits grow 11.7 percent to 2.24 billion rupees.

At group level gross profit rose only 1.8 percent to 2.2 billion rupees.

The group’s plantations revenue fell to 564 million rupees from 732 million rupees, generating a loss of 102 million rupees. Global commodities including food, crude, base and precious metals have been falling as the US dollar appreciated with less loose monetary policy from the Federal Reserve.

Telecom revenues fell to 829 million rupees from 885 million rupees a year earlier, generating a loss of 156 million rupees. (Colombo/Aug16/2015)

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