Warehousing profits prop up Sri Lankan tea broker’s bottom line
ECONOMYNEXT – Sri Lanka’s Asia Siyaka Commodities lost 4.4 million rupees in the September 2019 quarter compared with profits of nine million rupees a year ago with earnings from warehousing exceeding that from tea broking.
Sales rose 2.5 percent to 187.7 million rupees in the quarter from a year ago, according to interim accounts filed with the stock exchange.
Finance costs rose 15 percent in the quarter while tax costs were also up, the accounts showed. Asia Siyaka Commodities reported a loss per share of two cents in the September 2019 quarter.
In the six months to September 2019 earnings per share was seven cents, down from 13 cents the year before with sales up eight percent to 397 million rupees while net profit fell by 50 percent to 17 million rupees.
Profits from tea broking fell 73 percent to 6.2 million rupees while that from warehousing rose 39 percent to 19.4 million rupees, the accounts showed.
The company has been investing in warehousing capacity in recent years to diversify its business and not rely solely on volatile tea broking. (COLOMBO, 30 October 2019)