Sri Lanka’s Cargills net up 39-pct in March with improved margins


June 02, 2016 (LBO) – Profits at Sri Lanka’s Cargills group, with interests in retailing and fast moving consumer goods, rose 39 percent to 412 million rupees in the March quarter, the interim accounts showed.

The group reported earnings of 1.84 rupees per share for the quarter against 1.33 rupees recorded in the previous year.

Group sales rose 27 percent to 18.8 billion rupees and sales costs rose at a slower 24 percent to 16.6 billion rupees posting a gross margin of 2.2 billion rupees, up 60 percent.

Total operating expenses rose 8 percent to 1.6 billion rupees and net finance costs rose 30 percent to 159 million rupees.

In the twelve months to March, the group reported earnings of 7.25 rupees per share on total profits of 1.6 billion rupees.

In segmental analysis, retail sector operating profits rose 80 percent to 1.7 billion rupees in the year and fast moving consumer goods jumped 134 percent to 1.6 billion rupees.

69 million rupees loss of restaurant sector has turned to a 124 million rupees profit in the year against the previous year.

By the end of financial year there were 1,857 public shareholders holding 20.49 percent of company shares.

The liability of the group for super gain tax amounted to 57.8 million rupees.

Cargills Bank Limited has been accounted as an associate of the Company based on the nature of the controlling interest of the company in Bank.

The shareholding of the company in Cargills Bank was 18.22 percent as at 31 December 2015.

The company has invested 1.3 billion rupees to acquire 88 million additional shares of the bank that were allotted on 10 May 2016.