July 23, 2014 (LBO) – Profits at Sri Lanka’s Ceylon Cold Stores, which has interests in consumer goods and retailing, surged 87 percent to 299.3 million rupees in the June 2014 quarter from a year earlier as revenues rose 18 percent. Sri Lanka is recovering from a balance of payments crisis where consumer spending power was hit by steep currency depreciation in 2012, following contradictory monetary and exchange rate policy.
In the year to March 2014 revenues only grew 6 percent.
Ceylon Cold Stores is a top producer of carbonated drinks, ice cream and has a retail chain.
The firm reported earnings of 3.15 rupees per share for the quarter in interim accounts filed with the Colombo Stock Exchange. The stock closed at 177.70 up 9.70 rupees Monday.
The firm said revenues rose 18 percent to 6.7 billion rupees in the quarter and cost of sales also rose 18 percent to 5.8 billion rupees and the firm grew gross profits 25 percent to 828 million rupees.
Unspecified other operating income were up 36 percent to 250 million rupees.
Finance costs fell 59 percent to 8.3 million rupees as interest rates fell and the company reduced long term borrowing to 150 million rupees from 185 million a quarter earlier.