Sri Lanka’s Aitken Spence June profits fall amid Easter Sunday hit
Thursday August 8, 2019 16:15
ECONOMYNEXT- Diversified conglomerate Aitken Spence Plc said that its net profits for the June quarter fell 17 percent to 216.7 million rupees from a year earlier, as its leisure business took a hit from the Easter Sunday terror attacks.
Earnings per share for the quarter was 53 cents. Aitken Spence’s share had closed trading at 45.10 rupees on Wednesday.
Group revenue for the June quarter grew 17.8 percent to 12.3 billion rupees. Raw material costs rose 101.6 percent to 3.9 billion rupees.
Net finance expenses grew 49.3 percent to 425.7 million rupees.
Long-term interest bearing liabilities grew 36.7 percent to 40.2 billion rupees as at end June from the start of the financial year three months earlier, as the firm adopted a new accounting standard on operating leases, which were also accounted as right-of-use assets.
Short-term borrowings grew 8.6 percent to 3.8 billion rupees during the quarter.
The group’s leisure operations loss after tax rose to 512.3 million rupees in June from 296.2 million rupees a year earlier.
Leisure sector revenue fell to 4.5 billion rupees from 4.9 billion rupees a year earlier as the Sri Lankan hotel and tourism industries suffered after the Easter Sunday terror attacks.
However, the industry has shown a faster-than-expected recovery.
The maritime and logistics sector after tax profits rose to 446.9 million rupees from 350.7 million rupees while revenue in the segment remained flat at 2.1 billion rupees.
The group’s strategic investments, which includes its power generation arm, reported 238.9 million rupees in post-tax profits, up from 201.6 million rupees, on revenue while rose to 5.2 billion rupees from 3 billion rupees. (Colombo/Aug08/2019)