Sri Lankaâ€™s Kelani Valley Plantations profits soar on capital gain
ECONOMYNEXT – Sri Lanka’s Kelani Valley Plantations said net profit soared to 354 million rupees in the December 2018 quarter from 27 million rupees a year ago, as it booked a gain from selling a stake in a tea extracting unit.
According to interim accounts filed with the stock exchange, sales of the firm, part of Hayleys group, rose 16 percent to 2.2 billion rupees.
Quarterly earnings per share were 10.42 rupees. The stock closed at 93 rupees, up 6.10 rupees or 7.02 percent, Tuesday.
In the nine months to December 2018, EPS was 9.97 rupees with sales up seven percent to 6.8 billion rupees.
A note to the accounts said that on 1st November 2018, Martin Bauer Group of Germany joined Hayleys Global Beverages (Pvt) Ltd. as a strategic partner by investing in a 51 percent stake of the company.
This reduced Kelani Valley Plantations PLC‘s shareholding in Hayleys Global Beverages, now renamed Martin Bauer Hayleys (Pvt) Ltd., to 10 percent.
The subsidiary has ceased to be accounted as an equity accounted investment resulting in a gain on disposal of 205 million rupees. (Colombo/January 23/2019)