Sri Lanka’s dairy SOE, Milco slips further into the red
ECONOMYNEXT – Milco (Pvt) Ltd, a state-run firm, has slipped further in to the red in 2018, losing 820 million rupees, up from 114 million rupees a year earlier, as expenses outpaced revenues and interest costs grew, official data shows.
The state-owned enterprise reported profits until 2016 and has a reputation for quality dairy products. It produces milk, ice cream, cheese, yoghurt under the brand ‘Highland’.
In 2018 revenues from dairy products grew 13.8 percent to 11.79 billion rupees but direct expenses grew at a faster 20.8 percent to 11.35 billion rupees, a treasury report said.
Gross profits fell to 445 million rupees from 968 million a year earlier.
Unspecified other income grew to 92 million rupees from 83 million rupees. In 2016, the last year Milco reported profits, other income was 327 million rupees.
Interest income surged to 190 million rupees from 84 million rupees.
Bank borrowings grew to 1.6 billion rupees from 1.41 billion rupees.
In 2016 Milco only had bank borrowings on 552 million rupees.
Milco collects milk from around 50,000 dairy farmer societies and paid an average of 68.71 rupees a litre.
Milk collection had fallen to 91 million litres in 2018 from 96 million litres a year earlier. (Colombo/June18/2017)