Sri Lanka’s Carsons group 2010 profits up 84-pct

June 11, 2010 (LBO) – Sri Lanka’s Carsons group profits rose 84 percent to 3.2 billion rupees due to a reversal of an impairment cost from last year and lower finance costs, while revenues grew at a faster rate than operational expenses, its annual report showed.

“Brewery capacity would expand by 30 percent within the current financial year, to step up production to meet the anticipated growth in volumes in the coming year,” De Zoysa said.

“Taxation continues to be high, accounting for a significant percentage of the price of a bottle of beer, supported by a policy framework which attempts to discourage consumption through pricing mechanisms.”

The group in a joint venture with Carlsberg beers of Denmark opened its fifth brewery in Andhra Pradesh, India, he said.

The group had an income of 971 million rupees from a reversal of an impairment expense. In 2009 it provided 835.6 million rupees as an impairment expense.

Carsons Cumberbatch group 2010 revenues were up 27 percent to 21.3 billion rupees, while sales costs also rose 26 percent to 10.3 billion rupees, resulting in an operating profit of almost 11 billion rupees, up 28 percent from a year ago.

Earnings per share for 2010 were at 35.56 rupees compared with last year’s 18.1 rupees