Cargills 1Q12 group revenue, PAT up

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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.

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DCSL 1Q12 consolidated gross revenue, net profit up

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Harry Jayawardena-controlled Distilleries Company of Sri Lanka (DCSL) recently released its interim, unaudited first quarter 2011/2012 financials in which it revealed consolidated gross revenues of Rs. 15.3 billion, up 35% year-on-year, and profit attributable to equity holders of Rs. 1.2 billion, a 49% year-on-year increase, for the three months to end-June 2011. Also shown, investment income more than doubled year-on-year to Rs. 378.2 million.

Dividends received also shot up by twice what it was the year before to Rs. 159.2 million while acquisitions of shares and other investments as well as property, plant and equipment increased in excess of Rs. 700 million and by four fold, year-on year, respectively. Also, cash and cash equivalents for the period was indicated as being Rs. 6.6 billion, up from Rs. 2.5 billion for the corresponding period the year before.

Additionally, segment-wise, there were year-on-year consolidated turnover gains in all business units, except for telecommunications. Beverages grew to Rs. 12.7 billion, from Rs. 9.3 billion, Plantations rose to Rs. 774.7 million, from Rs. 699.5 million, and Diversified increased to Rs. 702.6 million, from Rs. 178.6 million, while Telecommunications fell to Rs. 1.1 billion, from Rs. 1.15 billion. At the same time, industry profitability rose across the board, year-on-year, with Beverages growing to Rs. 1.7 billion, from Rs. 1.3 billion, Plantations rising to Rs. 132.3 million, from Rs. 87.1 million, Telecommunications increasing to Rs. 15.2 million, from a loss of Rs. 73.6 million, and Diversified going up to Rs. 47 million, from a Rs. 44.2 million loss.

However, a notation also reiterated that the company was yet to receive profits it was due from the Sri Lankan government after its shareholdings in Sri Lanka Insurance Corporation (SLIC), valued at Rs. 5.7 billion, reverted back to the state. This lack of action is said to be as a result of an unfinished valuation for 2003 to 2009 SLIC profits which the country’s Supreme Court ordered paid to DCSL subsidiary Milford Holdings.

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Feb 2011 exports, imports up 36% and 27%, remittances up 26%

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February 2011 economic data, issued recently by the Central Bank of Sri Lanka (CBSL), shows exports rose to US$ 860.3 million, up 36.8% year-on-year, while imports were also up to US$ 1.2 billion, an increase of 27.0% year-on-year. Meanwhile, exports mainly comprised of textiles and garments, petroleum and rubber while imports chiefly encompassed motor vehicles, petroleum, textiles and garments and machinery and equipment. There was also an increase in workers’ remittances to US$ 393 million, up 26.8% from the same period last year.

Overall, the trade deficit for the month was US$ 376.0 million, a year-on-year rise of 9.1%. While, according to the CBSL, "gross official reserves continued to remain above the targeted level and stood at US$ 7.0 billion by end March 2011 without Asian Clearing Union (ACU) balances. Based on the previous 12-month average expenditure on imports of US$ 1.2 billion per month, the gross official reserves without ACU balances were equivalent to 5.8 months of imports."

Said the CBSL; "The industrial sector continued to make the largest contribution to the increase in exports, reflecting higher earnings from garments exports, of which the EU and USA accounted for 54.8% and 35.1%, respectively. Exports of petroleum products increased by 274.7% reflecting higher volumes and prices, compared to February 2010. Earnings from exports of rubber products increased by 70.4%, year-on-year, reflecting high levels of domestic value addition amidst higher demand in the international market. While earnings from exports of machinery and equipment increased, those from food, beverages and tobacco and diamond and jewellery declined.

Earnings from agricultural exports grew in February 2011, mainly due to the higher prices that prevailed in the international market. The average export prices of tea and rubber remained high at US dollars 4.68 per kg and US dollars 5.35 per kg, respectively. However, rubber export volumes remained low at 4.9 million kg mainly due to tighter supply as well as the increased demand from the domestic industries for the manufacture of rubber based products. Earnings from minor agricultural exports increased by 16.2% to US$ 31 million in February, 2011 led by the high prices of cocoa products, essential oils and unmanufactured tobacco."

At the same time; "Expenditure on imports of intermediate goods increased in February 2011 led by higher petroleum prices amidst geopolitical uncertainties. The average import price of crude oil increased by 31.9% to US$ 103.18 per barrel in February 2011. Expenditure on fertiliser and textile imports also increased in February 2011. Expenditure on imports of consumer goods increased in February 2011 led by non-food consumer goods, particularly, motor vehicles and electrical equipment. Import expenditure on food and drink decreased in February 2011 due to the lower import volumes of rice, sugar and wheat. Investment goods imports increased in February 2011 reflecting increases in the machinery and transport equipment categories."

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76% YoY consolidated revenue growth for Bukit Darah-owned Carson

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http://www.sundaytimes.lk/110227/BusinessTimes/bt39.html

Sri Lanka-based Bukit Darah, the holding company for local diversified conglomerate Carson Cumberbatch, has revealed that its consolidated revenue had risen 46% and 56% year-on-year for the nine months and the three months to end-December 2010 respectively. The former was Rs. 25.70 billion and the latter was Rs. 9.94 billion. Additionally, Carson had also shown a 59% and 76% year-on-year increase, respectively, in consolidated revenue for the same periods; to Rs. 24.94 billion and Rs. 9.96 billion.

At the same time, Bukit also showed significant growth in profitability, which was also shared by Carson. Bukit’s consolidated after-tax profit gained by 22% and 29% year-on-year for the nine months and three months to end-December 2010, to Rs. 7.23 billion and Rs. 2.09 billion respectively, while Carson’s after tax profit for each of the two periods in question were also privy to double digit growth, to Rs. 6.49 billion and Rs. 2.12 billion respectively.

Meanwhile, both Bukit’s and Carson’s profitability was positively and similarly impacted by other income which grew to Rs. 171.87 million and Rs. 158.05 million respectively for the nine months and three months to end-December 2010. Additionally, for the same two periods, both companies had mark-to-market value adjustments – unrealised which grew to Rs. 590.74 million for the nine months to end-December 2010. While these line items fell to Rs. 101.74 million over the three months to end-December 2010. Also, net realised gain on sale of investments over the two periods increased to Rs. 589.22 million and Rs. 153.47 million respectively.

In addition, the segmental information presented in the financials also showed that revenues at both Bukit’s and Carson’s palm oil plantations and beverages increased for the three months to end-December 2010. While, other business units (real estate and hotels) stagnated and airlines with investment holdings and airline dropping significantly.

At the same time, over the nine months to end-December 2010, all business units except for airlines of both Bukit and Carson rose overall. Additionally, investment holdings, palm oil plantations and beverages climbed significantly.

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Renuka Holdings post-tax group profits up 168% in 1H11

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Sri Lanka’s Renuka Holdings this week posted its interim financials for the first half of year ending September 30 showing group after tax profits increasing to Rs. 616.5 million, or a year-on-year growth in profitability of 168%.

Also noted, as per the period under review, was that consolidated turnover for the group was Rs. 1.1 billion while group assets were Rs. 3.5 billion. Additionally, out of the Rs. 616.5 million group after tax profit, Rs. 473.6 million was indicated as being “attributable” to shareholders.

According to the group’s Executive Director, Shamindra Rajiyah; “(Renuka Holdings) continued taking advantage of market opportunities investing in listed shares, taking unquoted equity positions and in debt instruments. Its total investment portfolio was Rs. 1.2 billion of which 81% was classified as short term investments and 19% as long term investments. Our investment portfolio, in addition, consists of biological assets and in this regard the group continued planting Teak and Mahogany.” This from a group that has interests in plantations, manufacturing and exporting of Ceylon Tea, Coconut products, ethnic and organic foods along with forestry, logistics and portfolio management.

Also revealed was that there were plans to invest in property development and leisure activities. However, no specific projects have been indicated thus far. In addition, it also emerged that “the group is to soon embark on manufacturing innovative new beverages of Coconut and Tea and plans are being finalised.”

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tomorrowSHOPPING: Customised and waste-free

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tomorrowSHOPPING: Customised and waste-free
By Jagdish Hathiramani

In continuing the Business Times’ tomorrowSERIES of features exploring life in the distant, or even nearer, future, and following on from last time’s piece on tomorrowEDUCATION, we thought we’d again spend some time delving into yet another area of day-to-day life which everyone is familiar with: Shopping.

Whether you are a house- wife or house-husband, a single professional businessperson or even a school kid, you have definitely done copious amounts of shopping throughout your life. Today, even our pets have the ability to shop, with an increasing number of outlets catering specifically to them.

Even if it is just out of necessity, or as part of some full-fledged hobby or competition; shopping for food, clothes, etc. is just another universal we encounter virtually every day. As such, while the pleasure of shopping is unlikely to be traded away in the future, the hassle and waiting around inherent in the shopping experience has been targeted for elimination; or so the relevant experts assure us.

Before we truly jump into the widening canvass that is the future world of shopping or tomorrowSHOPPING, it is important for us to explain that much of the conceptualising which has been undertaken in this field only caters to the medium term of 10 to 15 years, 2022 in fact is the farthest date for prediction that we have encountered. As such, excuse us as we are somewhat limited in this flight of fancy. Interestingly, this may be because, as some have argued that, and if much of the technology outlined in our own tomorrowHOME feature is anything to go by; shopping as a menial task will soon prove redundant, replaced by a function carried out by the kitchen of the future which will be only too happy to automatically order ingredients based on pre-programmed menus.

However, as pertains to shopping malls, the social aspect of going to a mall may very well eventually overshadow tendencies to shop for pleasure. A case in point is the Apple store experience where people don’t go to buy but rather interact with others and sample iPhones, iPads, iTunes, etc. Products which they often order online, usually customised.

In the short haul however, technological innovations such as Radio Frequency ID (RFID) chips, intelligent foam, etc. will alter our perception of shopping to an almost unfathomable degree, offering up effects that will change the face of grocery stores, supermarkets, and even clothing and other shops. These technologies, some already being used in concept retail spaces today, are all set to overwhelm such hassles as waiting in line for the cashier or even cashiers themselves. These will also make every interaction with the shops of the future into a self service one similar in some ways to using an Automated Teller Machine but a lot less intensive, if you can imagine it.

This is because RFIDs tagged to products combined with intelligent foam covered surfaces will allow instantaneous check-out when products are lifted off their surface contact point or even when they are tracked leaving the store in someone’s possession, the person who will then be charged the relevant fee for the product. This RFID tag also allows a whole gamut of automated services, from inventory control to queue control and even recipe or usage suggestions, etc. as well as the chance to reduce waste as packaging no longer becomes necessary, as RFID includes more and more data and mobile smart devices are tasked with identifying more and more functions associated with the product.

Meanwhile, while RFIDs, intelligent foam and even mobile smart devices, such as today’s mobile phone which everybody owns, can benefit multiple stores formats, trends show that grocery stores of the future may only become more specialised, such as with stores becoming organic today, etc. In fact, some forecasters suggest that the future for these stores may be in-store hydroponic pods where certain fruits, vegetables, etc. can grow and be picked right from trees to guarantee freshness. Or , at the same time, data would allow shoppers to track every step in each product’s life cycle so they can apply their own methodology to choosing what they like.

Suggested additions for future stores also include automated self service kiosks which help you plan your food budget, sommeliers to suggest wines, compare vintages and even allow you to taste samples, recycling management to facilitate the after use of products you buy or have at home, etc.

In the meantime, while all your usage patterns being tracked may be chilling to some, this would mean that there will no longer be a need for you to carry a shopping list as data reader devices will be able to remind you if you have forgotten something or recommend similar items to those you have historically liked, just like Amazon.com does today with online shoppers. But beware, listen to your doctors when they tell you what you can and cannot eat because otherwise one day they may control what you can or cannot buy if they place an emergency medical alert or a lock on certain foods or beverages.

Additionally, clothing and other such stores in the future may just become experiential or social venues as clothes and other items become made-to-order to improve fit or even usability, while at the same time reducing wastage. Full body scans using sensors will facilitate real-time trying on of clothes or using of products as a part of increasingly realistic virtual reality worlds to try before you order. With sampling soon to become the main function of stores.

Shopping malls may actually feel the most radical changes according to predictions because, when products cease to be the focus, the dynamics of these will also change. Some suggest that they may increase their scope to any number of areas such as growing food, manufacturing products, generating electricity and even providing education, if needed.

In conclusion, maybe the only real clue of the distant future of shopping is the example of the Ainsworth Collective located in the Cully neighbourhood of the US city of Portland, Oregon. This group of 50 households joined together out of a mutual need for sustainability and community and, as such, has created its own micro economy. The basis of which is a list of services published for access by members, all to encourage local transactions. Offering anything from tax preparation and massage services to cat-baby sitting, etc., this functionality allows them to facilitate the sharing of tools and cars as well as buying in bulk. They even have their own farmer’s market which sells their extra produce, baked goods and other items made by its members. Is this a step forward or backward? You decide.

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