Sri Lankaâ€™s Serendib Hotels March quarter net profit growth flat
ECONOMYNEXT – Net profits at Sri Lanka’s Serendib Hotels group were virtually flat at 156 million rupees in the March 2019 quarter from a year ago, interim accounts showed, with sharply higher administrative costs although tax expenses were lower.
Quarterly sales rose seven percent to 688 million rupees with cost of sales up nine percent to 128 million rupees and gross profit up seven percent to 560 million rupees.
Earnings per share were 1.40 rupees. The share last traded at 13.90 rupees.
EPS for the year to 31 March 2019 of Serendib Hotels part of the Hemas group, fell to 35 cents with net profit down 67 percent to 39 million rupees while sales were up 11 percent to two billion rupees.
The accounts showed sharply higher administrative and sales and marketing expenditure while income tax expenses fell 95 percent to 2.6 million rupees.
Serendib Hotels group owns and manages four properties; Avani Bentota Resort & Spa, Club Hotel Dolphin Waikkal, Hotel Sigiriya, and Lantern Beach Collection Mirissa.
Malinga Arsakularatne, executive director of Serendib Hotels group, said annual finance costs doubled to 100 million rupees from the year before.
This was owing to interest on loans taken to buy the Lantern Beach Collection, along with a loss from revaluation of the US dollar loan at Serendib Hotels PLC and interest cost on loans carried by Lantern Beach Collection.
(COLOMBO 24 May 2019)