ECONOMYNEXT – SriLankan Airlines’ catering unit, which has a monopoly at the island’s two international airports, made a net profit of 3.9 billion rupees in the financial year ending 31 March 2018, up four percent from a year ago.
A company statement said the “somewhat low growth in net profit” at SriLankan Catering was a result of a drop in exchange gains which fell to 202 million rupees this year from 833 million rupees in the previous financial year.
“The company has proven itself to be a perfect example of consistency and has crossed the Rs. 2 billion mark in profits every year during the last five years,” said Ranjit Fernando, chairman of SriLankan Catering who is also the Chairman of SriLankan Airlines.
The national carrier’s catering arm provides about 24,000 inflight meals a day to airlines that operate from the Bandaranaike International Airport (BIA) at Katunayake and Mattala Rajapaksa International Airport (MRIA) in Hambantota.
These include airlines such as Emirates Airline, Qatar Airways, Malaysia Airlines, Air China, Cathay Pacific Airways, China Eastern Airlines, China Southern Airlines, Korean Air, Turkish Airlines and SriLankan Airlines.
SriLankan Catering also operates restaurants and lounges at BIA and MRIA, manages the transit hotel at BIA, and operates an industrial laundry service.
The statement said that according to unaudited results, the firm’s operating profits grew 26 percent to 3.81 billion rupees during the period.
Its operating profit ratio, percentage of profit made from operations, before subtracting taxes and interest charges, improved to 44 percent from 42 percent the year before.
(COLOMBO, 10 September, 2018)