Sri Lanka’s Adam Investment back in profit in March 2018 quarter
ECONOMYNEXT – Sri Lanka’s listed Adam Investments which is undergoing restructuring, reported earnings of 5.3 million rupees in the March 2018 quarter on higher revenue growth, against a loss of 3.5 million rupees a year earlier, according to interim results.
The company, which has interests in activated carbon, ICT, FMCG and a vehicle dealership, reported a negligible earnings per share (0.006 rupees) in the quarter despite revenue growing 42 percent from a year earlier to 319.3 million rupees.
Cost of sales grew a slower 25 percent to 226.3 million rupees, leading to gross profit growing 111 percent from a year earlier to 92.99 million rupees, interim results filed with the Colombo Stock Exchange showed.
The share last traded at 20 cents.
"It is fulfilling to witness the restructuring process and to see the transformation of a company which was once struggling," Adam Investments Chairman Ajita Pasqual told shareholders in a statement signed off in March 2018 included in the late publication of the company’s 2016/17 annual report.
"The Group has identified that further growth and profitability could be successfully achieved through International Affiliations and Joint Ventures. Such ventures would bring in advanced technical expertise, management practices and capital for the development and marketing of the products and services being offered by the Group," he said.
The company has signed a collaboration agreement with a Thailand-based conglomerate to access markets in Asia and Africa, Pasqual told shareholders, but did not give details.
Adam Investments reported a loss of 2 cents a share for the year to end March 2018, down from a loss of 13 cents a year earlier as revenue fell 19 percent to 803.5 million rupees.
Net finance cost grew 138 percent to 37 million rupees in the March 2018 quarter and selling and distribution expenses surged 291 percent to 26.6 million rupees.
The company reported a 1 million loss in the revaluation of financial assets in the quarter, compared to a loss of 8.7 million rupees a year earlier.
The company has interests in manufacturing and exporting activated carbons (Adam Carbons), Islamic micro-finance (Adam Capital Micro Credit), ICT (Network Communications Pvt. Ltd.), building materials (Adam Metals), importing vehicles and spareparts (Adam Automobiles) and FMCG (Wellwin). (COLOMBO, 11 July 2018)