Sri Lanka’s Keells Food June quarter profits fall amid low sales growth

ECONOMYNEXT- Profits at Keells Food Products Plc (KFP), a processed food manufacturer, fell 39 percent to 34.1 million rupees in the June 2019 quarter amid low revenue growth and higher expenses, the firm said.

KFP’s earnings per share for the quarter were 1.34 rupees, the firm said in its interim financial statement. The share last traded at 120 rupees.

The firm, part of Sri Lanka’s largest conglomerate John Keells Holdings, saw the lowest revenue growth in seven quarters with the economy being hit by the Easter Sunday bombings in April.

Revenue grew 4 percent from a year earlier to 831.5 million rupees in the June quarter, while cost of sales were up 4 percent to 599.6 million rupees and gross profits were up 2 percent to 231.9 million rupees.

Selling and distribution expenses grew 29 percent to 112.4 million rupees contributing most to the falling net profit margin.

Finance costs fell 77 percent to 215,000 rupees from 918,000 rupees a year earlier.

The firm’s long-term borrowings meanwhile grew to 100 million rupees as at end-June from 18.5 million rupees at the start of the financial year, while short-term borrowings grew to 29.5 million rupees from 4.6 million rupees in the same period. (Colombo/Jul23/2019)