Cargills 1Q12 group revenue, PAT up
http://www.sundaytimes.lk/110821/BusinessTimes/bt10.html
Sri Lankan food and retail conglomerate Cargills recently reported a group revenue of Rs. 11.2 billion, up 25% year-on-year, and a profit after tax (PAT) of Rs. 330 million, a 6% year-on-year increase, for the three months to end-June 2011, the first quarter (Q1) of its 2011/2012. This was also said to include a “pre-operating cost of approximately Rs. 100 million excluding the interest cost incurred to fund new investments during the last two quarters of the previous financial year.”
Additionally, according to Managing Director Abdul Wahid, the company revealed that it had “now fully revamped its biscuit facility and re-engineered the product range which would be launched during the upcoming quarter.”
Further noted by Mr. Wahid, “‘Cargills Food City’, Sri Lanka’s No 1 modern retail chain continued to maintain a steady growth in transactions and volume while consolidating its position in the industry with the opening of its 4th outlet in the Northern region in Kilinochchi, taking the total number of stores to 164. The retail sector invested Rs. 250 million to increase it’s modern trade footprint during the quarter.”
He also added that “FMCG brands comprising, Magic, Kist, Finest, Sams, Goldi and newly acquired Kotmale , reported volume growth in excess of 20%… Millers Brewery Limited, the new investment, commenced limited production during the 1st quarter and market acceptance of the renowned ‘3 Coins’ brand indicates a promising off take. Aggressive expansion has been planned for the brewery.”
In addition, capital expenditure in terms of additions of property, plant and equipment for Q1 2011/2012 was shown to have more than doubled, to Rs. 491 million, compared to the corresponding period the year before. While a segmental analysis highlighted the fact that revenues in food and beverages, wholesale distribution and leisure businesses all grew year-on-year by 25%, 12% and 7%, respectively, with photo processing being the only segment to fall, by 29% year-on-year. At the same time, segment related profitability dropped for all businesses except the food and beverages unit which witnessed of 25% year-on-year growth in the “Segmental profit before unallocated overheads” line item.
53% YoY 3Q 10/11 group net profit for Cargills, post 3 Coins, Kotmale
http://www.sundaytimes.lk/110220/BusinessTimes/bt13.html
Sri Lankan food retailer Cargills has released third quarter financial results which indicate significant year-on-year profitability for the three months and nine months to end-December 2010, stating; "All our existing businesses have performed exceedingly well and the expansion programme in Cargills Retail is on track."
At the same time, group net profit for the three months to end-December 2010 grew 53% year-on-year to Rs. 290.73 million, while the same line item for the nine months to end-December 2010 rose by 73% year-on-year to Rs. 855.00 million. Additionally, group turnover for the stipulated periods also showed double digit growth with the former being Rs. 9.86 billion and the latter at Rs. 27.45 billion.
According to chief executive Ranjit Page, who was quoted in its financials; "The period under review saw the group looking to further expand its businesses in line with its core business interests in retail and FMCG. Cargills is of the view that the anticipated high economic growth in the medium term and the consequent growth in per capita income provides vast opportunities for the FMCG business." A strategy already exceedingly demonstrated by the group’s recent shopping spree which saw it pick up ice cream and dairy brand ‘Kotmale’ (Rs. 1 billion), biscuit maker ‘Diana’ (Rs. 352 million) and, most recent of all, an agreement to acquire several local beer brands, including ‘3 Coins’, ‘Sando Stout’, ‘Irish Dark’ and ‘Grand Blonde,’ for Rs. 1.42 billion.
Explaining away this slew of new acquisitions, Mr. Page indicated that they "envisage a consumer shift from hard liquor to soft alcohol and a rapidly growing demand from the tourism sector would see growth in this category of business… these brands [having] distribution channels including linkages with institutional customers provides a strong platform from which Millers Brewery should certainly develop into a strong player in the medium term."
He also revealed ‘branded consumer goods to be a thrust in its future expansion and diversification. The competitive advantage of being the leader in the modern trade industry through its Cargills Food City supermarket chain and its island-wide marketing and distribution subsidiary Millers Limited provides Cargills the opportunity to achieve the full potential of these newly acquired businesses.’
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