Sri Lankaâ€™s Cargills June quarter profit down 15-pct
ECONOMYNEXT – Sri Lanka’s Cargills (Ceylon) said net profit fell nearly 15 percent to 643 million rupees in the June 2019 quarter from a year ago as business was affected by April’s suicide bombings and subsequent unrest.
Sales of the group, part of CT Holdings, rose six percent to 26 billion rupees over the period, according to interim results filed with the stock exchange.
Diluted earnings per share were 2.50 rupees. The Cargills (Ceylon) share last traded at 189 rupees, up 3.60 or almost two percent.
A note accompanying the accounts said the performance of the group during the period was affected by April’s suicide bombings of hotels and churches which killed over 250 people.
“The economy faced multiple challenges during the quarter as a consequence of the Easter Sunday attacks, with significant impact to the tourism sector and consumer and business confidence jolted by this unfortunate event,” it said.
Cargills said the FMCG sector showed resilience to drive group performance, supported by its retail presence across the country although both sectors were impacted by the market conditions that prevailed during the quarter.
Net finance costs rose doubled to 639 million rupees in the June quarter from a year ago with the adoption of a new accounting standard for leases, SLFRS 16.
“The group will continue to focus on FMCG growth, expanding our manufacturing operations while continuing to grow the retail footprint,” the company said.
“Consumption is gradually recovering towards normal levels, and the group is confident of an improved performance from all businesses in the coming quarters, with a focus on increasing market share and leading in all categories within which we operate.”
(COLOMBO, 16 August, 2019)