Sri Lanka’s Melstacorp Sept quarter net down 17-pct
ECONOMYNEXT – Profits at Sri Lanka’s Melstacorp Plc fell 17 percent from a year earlier to 1.48 billion rupees in the September 2018 quarter as sharp increases in valuation losses, distribution and administrative costs off-set strong revenue growth, interim accounts showed.
The diversified holdings company reported earnings of 1.27 rupees a share in the quarter.
In the six months to end September, earnings were 1.95 rupees a share on a profit of 2.27 billion rupees, down 22.39 percent from a year earlier, statements filed with the Colombo Stock Exchange showed.
Melstacorp was trading 90 cents higher at 52 rupees on Thursday.
During the quarter, net revenue grew 114 percent from a year earlier to 23 billion rupees, cost of sales grew 98 percent to 15 billion rupees leading to a sharp 151.6 percent rise in gross profits to 8 billion rupees.
Other operating income fell 65 percent to 173.4 million rupees.
Distribution costs rose a sharp 134 percent to 899.3 million rupees and administrative expenses ballooned 252 percent to 4.2 billion rupees.
Net finance cost was flat at 203 million rupees.
Losses from valuation of financial assets grew 98 percent to nearly 2 billion rupees.
The beverages segment which includes listed Distilleries Company of Sri Lanka reported a 53 percent growth in profits from a year earlier to 2.5 billion rupees in the September quarter despite revenue falling 12 percent to 21 billion rupees.
Earnings from diversified businesses surged 216 percent to 818.8 million rupees after revenue increased to 13 billion rupees in the quarter from 511 million rupees a year earlier. This segment includes listed diversified holdings company Aitken Spence, automobile servicing, a BPO, media and textiles dying and printing facility.
Losses from telecommunications which includes voice and broadband services provider Lanka Bell fell 2 percent from a year earlier to 407.5 million rupees on revenues growing 10 percent to 835.5 million rupees.
Plantations reported a 96.7 million rupee loss in the quarter, down 134 percent from a profit of 281 million rupees a year earlier.
Financial services, which includes Continental Insurance, profits fell 13 percent to 104.3 million rupees as revenues slipped 13 percent from a year earlier to 801.8 million rupees. (COLOMBO, 15 November 2018)