Sri Lanka’s Melstacorp March quarter earnings surge
ECONOMYNEXT – Profits at Sri Lanka’s Melstacorp surged to 3.3 billion rupees in the March 2018 quarter from 140 million rupees a year earlier, helped by business growth and a one-off gain, interim accounts showed.
Melstacorp has interests in alcohol, insurance, hotels, farming and telecom.
The firm reported earnings of 2.86 a share in the quarter. The share was trading 80 cents higher at 55.80 rupees on Tuesday.
Melstacorp saw gross profits increase 59.5 percent from a year earlier to 4.8 billion rupees in the March 2018 quarter, with revenue growing 19 percent to 12.5 billion rupees and cost of sales increasing at a slower 2.24 percent to 7.6 billion rupees.
Other operating income grew 176 percent to 1.5 billion rupees.
Dividends from equity investments increased 88 percent to 853.5 million rupees and a one-off capital gain amounted to 825 million rupees.
Net finance cost increased 27 percent to 248.7 million rupees.
Administrative expenses fell 3.35 percent to 1.2 billion rupees while other operating expenses grew three-fold to 1.4 billion rupees.
Income tax expenses rose more than two-fold to 1.46 billion rupees on account of new tax changes.
Melstacorp said it reported 1.6 billion rupees of impairment in its investment in a subsidiary Milford Holdings which controls Lanka Bell, a telecommunications company.
Earnings for the 12 months to end-March 2018 was 6.62 rupees a share, up 5.2 percent from a year earlier on a revenue of 110 billion rupees, up 0.87 percent from a year earlier.
For the 12-months to March 2018, the beverage segment which includes listed Distilleries saw profits fall 21 percent from a year earlier to 8 billion rupees.
The group’s financial services businesses saw profits grow 39 percent to 416 million rupees. Businesses classified under diversified reported a 177 percent growth in profits to 1.1 billion rupees.
The plantations segment made a 147 million rupees profit compared to a loss of 343 million rupees the previous year. The telecommunications segment which includes broadband operator Lanka Bell saw losses increase 23 percent to 1.6 billion rupees. (COLOMBO, 05 June 2018)