Sri Lanka’s Agalawatte Plantations returns to profit
ECONOMYNEXT – Sri Lanka’s Agalawatte Plantations, which is carrying heavy losses with the former management accused of mismanagement, returned to profit in the September 2017 quarter.
The firm made a net profit of Rs42 million in the September 2017, the latest for which accounts are available, compared with a loss of Rs128 million the year before, according to interim results filed with the stock exchange.
Sales rose 52% to Rs523 million over the period. Quarterly earnings per share were Rs1.66. Agalawatte’s share was trading at Rs19.70 Wednesday.
In the nine months to 30 September 2017, Agalawatte made a loss per share of 89 cents while Sales rose 43% to Rs1.5 billion.
The accounts showed Agalawatte’s tea and rubber businesses continued to make losses while profits came mainly from oil palm.
Agalawatte Plantations owns part of AEN Palm Oil Processing (Private) Limited, a joint venture processing and selling palm oil.
Last year, D R Investment (Pvt) Ltd., the new owners of Agalawatte Plantations said re-audited accounts of the firm had revealed over Rs4.5 billion accumulated losses and liabilities and promised legal action against those responsible for mismanagement.
In March 2017, Browns Group sold a 61% stake in Agalawatte Plantations to D. R. Investment (Pvt) Ltd.
Browns’ controversial acquisition of the loss-making Agalawatte from Mackwoods group has been challenged in court.
(COLOMBO, February 14, 2018)