Sri Lanka’s Cargills (Ceylon) December net down 3 pct

Feb 10, 2016 (LBO) – Profits of Sri Lanka’s Cargills (Ceylon) group, which has interests in retailing and fast moving consumer goods, fell 3 percent to 463 million rupees, interim accounts showed.

The group reported earnings of 2.07 rupees per share for the quarter.

Revenues rose 19 percent to 18.1 billion rupees and cost of sales rose 17 percent to 16.0 billion rupees but the firm also managed to grow gross profits 40 percent to 2.0 billion rupees.

Interest costs fell 25 percent to 155 million rupees.

The group posted 1.2 billion rupees of net profit for the nine months, recording earnings of 5.41 rupees per share for the period.

Cargills said its retail business saw a strong turnaround for the nine months ended backed by a positive consumption environment reinforced by strong focus on enhancing service levels and driving efficiency across the value-chain.

The retail sector has posted an operating profit of 1.2 billion rupees on a gross turnover of 41.4billion rupees for the nine months ended.

“The FMCG sector has continued a stable performance with gross turnover reaching Rs 12.9 Bn for the nine months ended while Operating Profit was Rs 1.1 Bn,” the company said.

“The double-digit growth reported by our agriculture, dairy and livestock processing businesses indicates category growth driven by our strong portfolio of national brands,”

“The Restaurants business is consolidating its upward trend bolstered by enhanced consumer spend. The sector recorded a topline of Rs 2.1 Bn for the nine months under review while Operating Profit was Rs 104.1 Mn.”