Sri Lanka’s Keells Food Products profits fall in Sep on higher operating costs

ECONOMYNEXT- Keells Food Products Plc, a processed food making unit of the largest listed entity John Keells Holdings Plc, said that its net profits for the September quarter fell 6 percent to 61.8 million rupees in the September quarter from a year earlier.

Interim financials showed the firm, which makes processed meat products, posting 2.42 rupees in earnings per share. The KFP share closed at 125.10 rupees on Wednesday, up 10 cents.

Revenue for the September quarter grew 5 percent to 901.8 million rupees while cost of sales grew at 5 percent to 647 million rupees, leading to gross profits rising 4 percent to 254.8 million rupees.

Due to higher distribution and administrative expenses, operating profits fell 9 percent to 80 million rupees.

Finance costs doubled to 1 million rupees.

Long-term borrowings rose to 142.4 million rupees by end-September from 18.5 million rupees at end-March, while short-term borrowings grew to 44 million rupees from 4.6 million rupees during the 6 months.

KFP’s total assets were 2.8 billion rupees by end-September, growing from 2.6 billion rupees 6 months earlier. (Colombo/Oct24/2019)

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