Sri Lanka’s Melstacorp net profits flat in December 2018
ECONOMYNEXT – Net profits at Sri Lanka’s Melstacorp for the December quarter was flat at 1.5 billion rupees from a year earlier, with non-controlling interests cashing in on business growth.
Earnings per share for the quarter was 1.25 rupees. Melstacorp’s share price gained 50 cents Thursday morning, trading at 46.50 rupees at the Colombo Stock Exchange.
Net revenue for the quarter grew 123.1 percent to 24.8 billion rupees from December 2017, while cost of sales grew 110.4 percent to 15.3 billion rupees and gross profits grew 147.3 percent to 9.5 billion rupees.
Administrative expenses grew 230.7 percent to 5 billion rupees from a year earlier.
Net finance income was 95.5 million rupees, compared to a net cost of 252.5 million rupees a year earlier.
The firm’s long-term borrowings grew 38.2 percent to 32.3 billion rupees in December, compared to the start of the financial year nine months earlier.
Short-term borrowings fell 39 percent to 4.8 billion rupees.
For the nine months up to end-December, the firm’s net profits fell 12.4 percent to 3.8 billion rupees from a year earlier, while earnings per share was 3.30 rupees.
Operating profits of the beverages segment in the nine months grew 32.4 percent to 6.5 billion rupees.
Plantations made an operational loss of 292.9 million rupees from a 355.9 million rupee profit a year earlier.
Telecommunications operational losses widened 3.7 percent to 1.3 billion rupees while diversified interests made profits of 4.2 billion rupees, up 328 percent from 2017.
Norges Bank, which manages the world’s largest sovereign fund, divested its 0.664 percent shareholding (14th largest) in Melstacorp during the quarter.
The Yaseen family, one of the top three shareholders, was seen consolidating its position.
The RWC Frontier Markets Equity Master Fund entered the top 20 shareholder list at the 15th position holding 0.626 percent of Melstacorp shares. (Colombo/Feb15/2019-SB)