Sri Lankaâ€™s Renuka Agri Foods back in profit as nut prices fall
ECONOMYNEXT – Renuka Agri Foods, a Sri Lankan manufacturer of coconut-based food and beverage products, swung back into the black with net profit of 61 million rupees in the December 2018 quarter from a loss of 58 million rupees the year before.
The company’s sales fell 27 percent to 495 million rupees in the quarter, interim accounts filed with the Colombo stock exchange showed.
Cost of sales also fell – down 46 percent to 349 million rupees – with gross profit up 248 percent to 146 million rupees.
Renuka Agri Foods reported earnings per share of 11 cents in the December 2018 quarter.
Renuka Agri Foods shares were trading at 2.30 rupees Thursday morning, down 10 cents or 4.17 percent.
EPS for the nine months to December 2018 were 26 cents with net profit of 146 million rupees.
Renuka Agri Foods Director Executive Shamindra Rajiyah attributed the recovery to lower prices of coconut.
“The gross profit margin has improved significantly in comparison to previous year same quarter mainly due to decrease in coconut prices,” he told shareholders.
“The manufacturing sector continued to be the main contributor to revenue for the period under review by achieving a turnover of 1,967 million rupees.
(Colombo/February 11/2019 – SB)