Sri Lanka’s Distilleries Corp net up 134-pct in March quarter
ECONOMYNEXT – Distilleries Corporation of Sri Lanka said profits for the March 2018 quarter rose 134 percent from a year earlier to 1.902 billion rupees after prices were increased to pass on all new taxes that were charged.
The firm reported earnings of 41 cents per share for the quarter. The stock closed at 22.40 rupees, up 30 cents Friday.
"The increase in profits for the quarter is a reflection of adjustments that have been made in November 2017 to recover all the taxes imposed in November 2016," Chairman Harry Jayawardena told shareholders.
"Until then the company has been partially absorbing (taxes) to somewhat deflect the sharp increase in price that would otherwise have been passed on to the customer."
Jayawardena said the Distilleries will follow a policy of paying out 70 percent of the profits as dividends, since investments will take place at holding company level in the future.
Investment needs of the alcohol business would be minimal he said.
In the March 2018 quarter gross revenues with turnover taxes rose 7.4 percent to 24.9 billion rupees, ending several quarters of shrinking revenues.
Net turnover rose 15 percent to 8.16 billion rupees and cost of sales fell 11 percent to 4.46 billion rupees and gross profits rose 79.3 percent to 3.7 billion rupees.
Other operating income was up 21 percent to 118 million rupees.
In the year to March gross revenues with taxes was flat at 90.3 billion rupees, and net revenues grew 8 percent to 29 billion rupees. But cost of sales grew 23 percent to 19.7 billion rupees and gross profits shrank 14 percent to 9.4 billion rupees.