Sri Lanka’s Cargills net up 38-pct in Dec with improved margins

Feb 03, 2017 (LBO) – Profits at Sri Lanka’s Cargills group, with interests in retailing and fast moving consumer goods, rose 38 percent to 637 million rupees in the December quarter, the interim accounts showed.

The group reported earnings of 2.84 rupees per share for the quarter against 2.07 rupees recorded in the previous year.

“The enhanced efficiencies derived from focused effort towards consolidating businesses and maximizing productivity is self-evident in the performance,” the group said.

“The performance of the most critical 3rd quarter holds the Group in good stead as it gears to further deliver on its vision of sustainable socio-economic growth to the benefit of all stakeholders in the value chain.”

Group sales rose 22 percent to 22 billion rupees and sales costs rose at a slower 21 percent to 19 billion rupees posting a gross margin of 2.6 billion rupees, up 31 percent.

Total operating expenses rose 8 percent to 1.6 billion rupees and net finance costs jumped 100 percent to 312 million rupees.

In the nine months to December, the group reported earnings of 8.64 rupees per share on total profits of 2 billion rupees.

In segmental analysis, retail sector operating profits rose 94 percent to 2.3 billion rupees in the nine months to December. In the nine months, operating profits of fast moving consumer goods rose 48 percent to 1.7 billion rupees.

The percentage of shares held by the public and number of public shareholders as at 31 December 2016 is 20.64 percent and 1,846 (31 December 2015 – 20.82 percent and 1,851) respectively.

Company invested 1,276 million rupees and 2,533 million rupees in Cargills Bank Limited and accordingly 88,000,000 and 174,696,905 additional shares were issued on 10 May 2016 and 30 June 2016.

During the second quarter Cargills Agrifoods Limited acquired the 1,460,002 ordinary shares representing 100 percent stake of Ceylon Agro Development Company (Private) Limited at a total purchase consideration of 150 million rupees.