Sri Lanka’s Elephant House net down as interest costs bite
ECONOMYNEXT – Profits of Sri Lanka’s Ceylon Cold Stores, which has interests in retailing and fast moving consumer goods, fell 9 percent to 528 million rupees in the March 2019 quarter from a year ago with finance costs rising, interim accounts showed.
reported earnings of 5.56 rupees per share for the quarter. For the year to March 2019, the group reported earnings of 13.79 rupees per share on total profits of 1.31 billion rupees, down from 2.56 billion rupees
Ceylon Cold Stores stocks closed at 595.00 rupees, down 1.90 rupees.
Revenue grew 17 percent to 15.5 billion rupees and cost of sales grew at a faster 15 percent to 13.7 billion rupees, allowing gross profit to grow 28 percent to 1.8 billion rupees.
A segment breakdown showed manufacturing revenue up 7.6 percent to 3.9 billion rupees from 3.6 billion rupees a year earlier, while retail sales rose 20 percent to 11.6 billion rupees from 9.6 billion rupees.
Manufacturing finance cost was 214 million rupees from 680 million rupees a year earlier and retail finance cost rose to 432 million rupees to 31 million rupees.
Net finance cost rose 1,067 percent to 236 million rupees from 20 million rupees a year earlier.
Bank overdrafts grew from 3.08 to 7.43 billion rupees during the year and another 1.6 billion short term borrowings came in during the year.
The firm has invested in a new confectionary plant and has been expanding stores. (Colombo/May23/2019)