Sri Lanka Melstacorp profits fall 12-pct in Dec
ECONOMYNEXT – Profits at Sri Lanka’s diversified Melstacorp fell 12.3 percent from a year ago to 1.5 billion rupees in the December 2017 quarter, on falling liquor margins and losses in telecommunications despite gains in plantations and financial services.
The company reported earnings of 1.25 percent a share. In the nine months to December earnings amounted to 3.77 rupees a share on total profits of 4.4 billion rupees, down 24 percent from a year earlier.
Revenue including sales taxes fell 1.35 percent in the quarter to 27.1 billion rupees. Net of sales taxes, revenue was 11.1 billion rupees, up 7.6 percent from a year ago.
Cost of sales grew 19 percent to 7.3 billion rupees contracting gross profits 8.9 percent to 3.8 billion rupees.
Administrative expenses grew 14.27 percent to 1.5 billion rupees and net finance cost increased 15.8 percent to 252.5 million rupees.
Distribution expenses fell 2.4 percent to 399.3 million rupees in the quarter.
Revenue from beverages which includes listed Distilleries Company of Sri Lanka fell 4 percent to 71.2 billion rupees in the nine months to December on higher sales taxes. Profits fell 44 percent to 4.9 billion rupees.
Rubber and tea plantations revenue grew 39 percent to 2.5 billion rupees. Profits amounted to 355.9 million rupees, compared to a loss of 118.8 million rupees a year earlier.
Telecommunications which includes Lanka Bell, revenue fell 4 percent to 2.2 billion rupees and losses expanded 24 percent to 1.2 billion rupees.
Revenue from financial services, which includes Continental Insurance and Melsta Regal Finance, grew 40 percent to 2.8 billion rupees and profits increased 50 percent to 316 million rupees.
A segment classified as diversified reported revenues of 1.7 billion rupees, up 21 percent from a year earlier with profits surging 250 percent to 983.8 million rupees.
This segment includes logistics, BPO, IT, hydropower, media, textiles and hotels. (COLOMBO, February 15, 2018)