Sri Lanka’s Melstacorp June quarter profits up 50-pct
ECONOMYNEXT – Profits at Sri Lanka’s Melstacorp PLC rose 50 percent from a year earlier to 1.2 billion rupees in the June 2019 quarter from a year ago due to a sharp decrease in distribution costs and other expenses, interim accounts showed.
The diversified holdings company reported earnings of 1.02 rupees a share in the quarter.
Melstacorp was trading a rupee up at 45.00 rupees a share on Friday.
During the quarter, net revenue grew 11.84 percent from a year earlier to 23 billion rupees, cost of sales grew 15.25 percent to 15 billion rupees leading to a narrow 5.83 percent rise in gross profits to 7.9 billion rupees.
Other operating income gained 39.71 percent to 370 million rupees.
Net finance cost rose 55 percent to 884 million rupees.
Losses from valuation of financial assets grew 102.05 percent to nearly 3 billion rupees.
The beverages segment which includes listed Distilleries Company of Sri Lanka reported a 77.5 percent growth in profits from a year earlier to 2.9 billion rupees in the June quarter with a marginal revenue growth of 3.2 percent to 21 billion rupees.
Plantations reported a 116-million-rupee loss in the quarter, down 189 percent from a profit of 40 million rupees a year earlier.
Losses from telecommunications which includes voice and broadband services provider Lanka Bell fell 14 percent from a year earlier to 372 million rupees with revenue declining marginally 7 percent to 708 million rupees.
Profits from financial services, which includes Continental Insurance, grew 25.5 percent to 110 million rupees as revenues surged 90 percent from a year earlier to 1.4 billion rupees.
Earnings from diversified businesses fell 88.8 percent to 68 million rupees with a marginal increase in revenue to 12.8 billion rupees in the quarter from 10.9 billion rupees a year earlier. This segment includes listed diversified holdings company Aitken Spence, automobile servicing, a BPO, media and textiles dying and printing facility.
(COLOMBO 16 August 2019)