Sri Lanka’s CT Holdings June quarter net profit up 45-pct
ECONOMYNEXT – Sri Lanka’s CT Holdings group (CTH) said net profit rose 45 percent to Rs537 million rupees in the June 2016 quarter from a year ago, with strong growth in the retail and fast moving consumer goods (FMCG) sectors.
Sales rose 22% to Rs21 billion during the period, according to interim accounts filed with the stock exchange.
Earnings per share for the June 2016 quarter were Rs2.93 against Rs2.02 a year ago.
“Again, the retail and FMCG sectors led the way, with growth of 123.15 percent and 29.82 percent, respectively,” CT Holdings said in a statement accompanying the accounts.
“The restaurant sector also recorded growth of five times the previous year’s, albeit on a smaller base figure. Restaurant sector results also include TGI Fridays, which is yet to achieve its optimum operational level.”
CT Holdings said the sales growth momentum has been sustained during the period through volume growth, primarily in the retail sector.
Turnover of the retail sector grew 23.8 percent over the corresponding period of the previous year.
“Retail management takes the view that strong growth prospects are assured for this sector,” the statement said.
The FMCG sector, presently the second-largest sector of operation, grew 13.50 percent despite the confectionaries sub-sector lagging behind in its operational performance.
“Further efforts are being concentrated in the confectionaries sub-sector with a view to improving product offering, volume and market coverage.”
All other sectors, with the exception of the entertainment business, recorded a growth exceeding 10 per cent.
(COLOMBO, August 16, 2016)