Supermarket Sweep

Aug 16, 2010 (LBO) – Sri Lanka’s largest supermarket chain Cargills (Ceylon) group June quarter profits rose 92.3 percent to 312 million rupees from higher sales, better margins and lower finance costs, a stock exchange filing said.

Group revenues rose 20.6 percent to 8.94 billion rupees from a year ago while sales cost rose at a slower pace of 18.9 percent to 8.08 billion, resulting in a gross profit of 862.4 million rupees, up 38.8 percent, Cargills financial statements showed.

It made a profit of 1.39 rupees per share compared with 72 cents during the same quarter last year.

Other incomes rose 23.4 percent to 151.7 million rupees.

Cargills also has business interests in the food processing sector and holds the local franchise for KFC (Kentucky Fried Chicken).

Other costs had gone up 19.6 percent to 39 million rupees, while finance costs fell 37 percent to 82 million rupees.

The group’s distribution costs rose 22 percent to 166.2 million rupees, while administration costs went up almost 35 percent to 309.8 million rupees.

Tax costs had gone up 65.4 percent to 88 million rupees, its June accounts showed.

From the March 2010 quarter, the group’s net assets rose 5.0 percent to 6.45 billion rup