Retail Profits

Feb 02, 2010 (LBO) – December quarter profits at Sri Lanka’s largest supermarket chain, Cargills (Ceylon) group, rose 49.1 percent from a year ago despite flat sales growth, as finance costs fell interim results showed. The group made a net profit in the December quarter of 189.8 million rupees despite total revenues staying flat at 8.06 billion rupees, generated mainly from its supermarket business.

Cargills group, which is part of the Ceylon Theatres group controlled by the Page family, also has wholesale distribution, leisure and photo processing businesses that generated revenues of 900 million rupees in the December quarter.

It operates a chain of ˜Food City™ supermarkets and is the local franchise holder for US fast-food chain, KFC (Kentucky Fried Chicken).

“Cargills remains the largest retailer in Sri Lanka while its consumer foods sector has maintained its growth momentum with continuous market share growth locally and now internationally,” a company statement said.

“The third quarter saw the retail sector embark on an accelerated expansion drive with the opening of its latest store in Rajagiriya (a Colombo suburb) which is the first of the next 100 Food City outlets that would be estab