Sri Lanka’s largest brewery Lion net up 477-pct in Sept
ECONOMYNEXT- Sri Lanka’s Lion Brewery (Ceylon) Plc said profits grew 477 percent from a year earlier to 552.6 million rupees in the September 2018 quarter as more consumers switched from hard liquors to beer.
The firm’s interim financials showed 6.91 rupees in earnings per share for the September quarter.
Earnings per share for the first six months of the year were 16.25 rupees on a profit of 1.3 billion rupees, up 212 percent from a year earlier.
Lion’s share ended 2.30 rupees higher at 552.80 rupees on Thursday.
"Latterly, there has been a shift from hard to mild alcohols and very encouragingly from illicit to soft liquor," the firm told shareholders.
The growing tourism industry also increased sales, it said.
However, many hard liquor manufacturers are evading taxes to compete, Lion said.
Revenue for the September quarter grew 65 percent from a year earlier to 10.9 billion rupees, cost of sales increased 49 percent to 7.9 billion rupees, leading to gross profits surging 129 percent to 3 billion rupees.
Distribution expenses grew 58 percent to 1 billion rupees.
Finance costs fell 18 percent to 478 million rupees.
Outstanding from group’s 2 billion rupee 2014 debentures fell to 78.7 million rupees from 1.1 billion rupees at the start of the year
Debentures worth 797.6 million were redeemed in June.
Long-term borrowings fell 17.3 percent to 4 billion rupees, while short-term borrowings grew 9 percent to 7.5 billion rupees. (Colombo/Nov15/2018)