Sri Lanka’s Royal Ceramics June profits down 33-pct
ECONOMYNEXT- Royal Ceramics Plc, the dominant tile and sanitary ware group owned by Sri Lankan tycoon Dhammika Perera, posted net profits of 348.7 million rupees in the June 2018 quarter, down 33 percent from a year earlier due to higher cost of sales, distribution and finance.
Earnings per share was 3.15 rupees according to interim financial reports filed at the Colombo Stock Exchange. Royal Ceramics opened trading at 92.60 rupees per share on Tuesday and last traded at 90.30 rupees per share.
Royal Ceramics enjoys protectionist tariffs, and operates mainly in the local market. It opened a retail network in Australia in 2014, and has been exporting to 16 markets. Revenue from exports amounted to 3 percent in the last financial year.
Gross profits in the June quarter fell 3 percent to 2 billion rupees from a year earlier. Gross revenue grew 6 percent to 6.8 billion rupees from 2017, while net revenue grew 6 percent to 6.1 billion rupees and cost of sales grew 11 percent to 4.1 billion rupees.
Distribution expenses grew 15 percent to 1 billon rupees from a year earlier. Finance expenses grew 39 percent to 410.4 million rupees from 2017.
The plantation and aluminium extrusion arms of Royal Ceramics were in the red in the June quarter. Tiles and associated products, sanitary ware and packaging segments also reported lower profits. (COLOMBO, 14 August, 2018)