Sri Lankaâ€™s Cargills Ceylon December profit up 30-pct
ECONOMYNEXT – Sri Lanka’s supermarket chain Cargills Ceylon said profits grew 29.8 percent to 826.9 million rupees in the December 2017 quarter from a year ago helped by capital gains, despite shrinking retail margins.
"It has been a challenging consumption environment on account of the inclement weather affecting buying power in key agriculture regions of the country," the company said.
The company reported earnings of 3.69 rupees a share in the quarter. In the nine months to December, earnings amounted to 13.90 rupees a share on total profits of 3.1 billion rupees, up 60.8 percent from a year earlier, interim accounts filed with the stock exchange showed.
Revenue grew 5.26 percent to 23.2 billion rupees in the quarter, cost of sales rose 5.7 percent to 20.5 billion rupees, expanding gross profits by 2 percent to 2.7 billion rupees.
Administrative expenses rose 6.8 percent to 1 billion rupees, distribution costs increased 10.5 percent to 645 million rupees, and net finance costs fell 14 percent to 267.9 million rupees.
During the nine months to December the share of associate profit was recorded at 199 million rupees due to a 481 million rupee gain by Cargills Bank, an associate firm, from disposing its subsidiary Colombo Trust Finance to listed telco Dialog, the company said.
Cargills Ceylon said its subsidiary Dawson Office Complex disposed freehold property in Colombo valued at 4.2 billion rupees, recognizing a profit of 1 billion rupees.
Revenue from retail, which includes the Cargills Food City supermarket chain, grew 7 percent during the nine month period to 54.7 billion rupees, but profits were flat from a year ago at 2.3 billion rupees.
Cargills Food City opened its 338th outlet in this period.
Fast moving consumer goods revenue grew 8 percent to 16.6 billion rupees and profits rose 6 percent to 1.8 billion rupees.
Revenue from restaurants, which includes a KFC franchise, grew 12 percent to 2.8 billion rupees and profits surged 75 percent to 349.8 million rupees.
(COLOMBO, February 16, 2018)