ECONOMYNEXT- Profits at Sri Lanka’s Keells Food Products fell 40 percent to 82.4 million rupees in the December 2019 quarter from a year earlier on higher selling and distribution expenses, interim accounts showed.
The firm reported earnings of 1.95 rupees for the quarter. In the 9-months to September the firm reported earnings of 5.72 rupees on total profits of 145 million rupees, which were down 29 pecent.
Revenues grew 12 percent to 1.05 billion rupees, and cost of sales grew 15 percent to 757 million rupees, with gross profits growing 3 percent to 291 million rupees.
Selling and distribution expenses surged 40 percent to 147 million rupees.
John Keells Holdings Consumer Foods Sector Head Daminda Gamlath told EconomyNext earlier in January that the firms costs went up on promoting its new instant rice line.
The EZ Rice line is expected to contribute up to 40 percent to KFP, which has so far largely been a processed meat producer, in two years.
The firm in September inaugurated its 200 million rupee instant rice plant.
Finance costs for December grew to 5.5 million rupees from 167,000 rupees a year earlier.
KFP’s long-term borrowings grew to 135.6 million rupees at end-December from 18.5 million rupees at end-March, while short-term borrowings grew to 44.9 million rupees from 4.6 million rupees.
(Colombo/Jan20/2020- Correction: Revenue was corrected to 1.05 billion rupees)