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.
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NDB Group reaches Rs. 1 bln net profit ‘landmark’
http://www.sundaytimes.lk/110821/BusinessTimes/bt12.html
Sri Lanka’s NDB Group has revealed it had reached a “landmark” Rs. 1 billion in group profit attributable to shareholders for the first half (H1), the period to end-June, of its 2011 financial year, a year-on-year increase of 37% over the corresponding period last year. This was identified as resulting from “strong core banking profits and improved performance of the group companies.”
The NDB Group is said to have concerns in commercial banking, with 53 branches island-wide, as well as capital markets and insurance. Meanwhile, the group also indicated that its banking arm’s “Net Income increased by 5% over the corresponding period last year. This improvement was supported by the significant growth in loans and advances and deposits by 44% and 41% respectively over the last twelve months. NDB Bank’s core banking profits (Operating Profit After Provision for Fall in Value of Dealing and Investment Securities less Equity Income) increased by 9.7% over the corresponding period last year.”
Additionally, it also emerged that the bank’s second quarter performance (April to June) was “significantly higher than the performance for the first quarter. NDB Bank’s Profit Before Tax for the second quarter was Rs. 971 million, a growth of 37% over the first quarter of 2011. This has been backed by strong Net Income growth of 16% over the same period. The Profit After Tax of the Bank for the second quarter was 31% higher than the Profit After Tax for the first quarter of 2011. Profit After Tax of the Bank increased even more significantly by 45% over the 12 month period, partly due to the reduced tax rates applicable from 2011.
The loans and advances and deposits portfolio grew by 23% (Rs. 16 billion) and by 14% (Rs. 8.6 billion) respectively over 31 December 2010. This impressive growth in the Bank’s lending portfolio and the deposit liabilities are well in line with industry growth rates. The Bank’s total assets as at 30 June 2011 increased by 28% over 30 June 2010 from Rs. 94.9 billion to Rs. 121.2 billion.”
Also noted, despite significant growth in its loan portfolio, NDB Bank has kept its Non Performing Loans (NPL) ratio to 1.58%, which it attributed to “strong credit analysis techniques and with the use of proactive risk management practices.” Further, the bank also indicated it SME portfolio had “grown by 66% over the past 12 months.”
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JKH 2011/2012 Q1 group revenue at Rs. 15.69 bln, up 21% YoY
http://www.sundaytimes.lk/110731/BusinessTimes/bt34.html
Sri Lanka’s top corporate John Keells Holdings has released interim earnings for the three months to end-June 2011 which has shown group revenue to be Rs. 15.69 billion, a 21% year-on-year (YoY) increase, while profit before tax (PBT) was Rs. 1.88 billion, up 23% YoY, and profit attributable to equity holders was Rs. 1.37 billion, a 35% YoY rise.
According to comments in the interim report by group Chairman Susantha Ratnayake, the transportation group PBT was Rs. 742 million, down 7% YoY, attributed to a stronger Sri Lanka rupee. He also noted that leisure group PBT was Rs. 374 million, up from a loss of Rs. 14 million in the same quarter of the previous year, a result of strong showings by city hotels and the rebounding of Maldivian properties.
Further indicated, the group’s property arm “recorded a PBT of Rs. 85 milion for the quarter, a decrease of 41% over the corresponding period last year [2010/11 Q1: Rs. 145 million].” An outcome which Mr. Ratnayake said was due to the cyclical nature of revenue recognition of the local property market.
He also signalled a “Consumer Foods and Retail PBT of Rs. 207 million for the quarter was an increase of 22% over the first quarter last year [2010/11 Q1: Rs. 169 million], primarily due to volume increases in the ice creams and soft drinks businesses.” And that “Financial Services PBT of Rs. 422 million for the quarter is a 12% increase over the same period last year [2010/11 Q1: Rs. 377 million], mainly as a result of a significantly better performance by the banking associate Nations Trust Bank.”
In addition, he noted that the “Information Technology Group recorded a loss of Rs. 20 million for the three months, compared to the performance over the same period last year [2010/11 Q1: Rs. 0.8 million] due to costs associated with the transition of the BPO business to a new facility.” While; “Other comprising of Plantation Services, John Keells Capital and the Corporate Centre recorded a PBT of Rs. 74 million for the three month period, an increase of 43% when compared to the corresponding period last year [2010/11 Q4: Rs. 52 million].”
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Watawala shows ‘highest profit ever’ of Rs. 642 mln for FY11
http://www.sundaytimes.lk/110529/BusinessTimes/bt17.html
Publicly-listed Sri Lankan tea, rubber and palm oil concern Watawala Plantations has reported its “highest profit ever amounting to Rs. 642 million” in terms of group net profit for the 12 months to end-March 2011, up 51% year-on-year, according to its Managing Director, Vish Govindasamy, quoted in a recent Colombo Stock Exchange filing. Also revealed, group revenues grew to Rs. 6.15 billion, a year-on-year increase of approximately 9%, while group cost of sales remained virtually static.
At the same time, group net profit for the three months to end-March 2011 was Rs. 224 million, a year-on-year rise of 12%. According to Mr. Govindasamy, tea performance improved by close to 77% as a result of increased production and better net sales averages (NSA) prices as well as a lower cost of production (COP). However, group financials showed that, overall, Watawala’s tea business showed a Rs. 35.27 million loss. This was despite a revenue of Rs. 3.59 billion.
Further, he also noted that, “due to a mismatch in the supply and demand in the local as well as in the international market” which led to increased rubber prices, group net profits were elevated to Rs. 140 million compared to just Rs. 2 million the year before. He also revealed that NSA prices improved by 80% over the first nine months of the financial year up to end-March 2011, and further improvement would have been forthcoming if not for poor weather experienced over the last three months of the financial year. Additionally, group rubber revenue was reported as Rs. 334.72 million.
However, it was palm oil which “once again proved to be the key contributor” to profitability, according to Mr. Govindasamy. This was despite a “drop in crop of oil palm worldwide” and “due to after effects of the drought that prevailed in early 2009” which eroded company profitability to the tune of Rs. 100 million. Palm oil group revenue for the year was Rs. 701.67 million.
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NDB 1Q11 YoY Group PAT doubles
http://www.sundaytimes.lk/110522/BusinessTimes/bt15.html
NDB 1Q11 YoY Group PAT doubles
By Jagdish Hathiramani
Sri Lanka’s NDB recently released its financials for the three months to end-March 2011, which showed that group profit attributable to shareholders having increased by 102% year-on-year while, for the same period, the bank’s profit after tax rose by 65%. Further, increases in after tax profitability were pinned on reduced taxation as of 2011.
Meanwhile, group and bank first quarter 2011 profit before tax was stated as Rs. 966 million and Rs. 708 million respectively, up 23% year-on-year for the group and 8% for the bank. Additionally, it was noted that the “core banking income of the bank increased by 15% over the same period.”
Also revealed in a statement by NDB; “The bank’s balance sheet as at 31 March 2011 grew by 17% over 31 March 2010 from Rs. 94.6 billion to Rs. 110.3 billion. This was mainly due to the significant growth in the bank’s gross lending portfolio by Rs. 20.1 billion (35%) over the past twelve months. This was supported by a growth of 21% in the deposit portfolio over 31 March 2010… Despite the significant growth in the Loan portfolio in all the sectors, NDB Bank has been able to contain its Non Performing Loans (NPL) ratio to an all time low of 1.8% [and] provision cover on NPLs was at 73% as at 31 March 2011 with an Open Loan Position of 3.29%, which [signifies] minimum amount of stress on the bank’s equity, on account of un-provided delinquencies.
The bank’s Tier 1 Capital Adequacy Ratio of 11.18% and a Tier 1 & 2 ratio of 12.89% are well in excess of the regulatory minimum of 5% and 10% respectively, providing ample capacity for the rapid expansion planned for the future.”
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First Capital 4Q10 group after tax profits double
http://www.sundaytimes.lk/110522/BusinessTimes/bt24.html
The Schaffter family-controlled First Capital has released its unaudited annual financials as of end-March 2011, in which it revealed its group after tax profits rose 45% year-on-year to Rs. 990.26 million, while group after tax profits for the quarter nearly doubled (99% year-on-year) to Rs. 81.29 million.
At the same time, group yearly income fell by 33% year-on-year, to Rs. 1.82 billion, while group income for the quarter in question dropped by just 1% year-on-year, to Rs. 387.18 million. Additionally, it also emerged that earnings per share was Rs. 10.03 and net assets per share was Rs. 15.04.
This is despite “less conducive” conditions during 2010/2011 compared to the previous year, in which a “highly favourable bond trading environment resulted in exceptional profits by the group’s primary dealer arm,” according to a statement by First Capital.
It also further revealed that “reported profits were boosted by an one-off gain from the sale of an associate company – Kotmale Holdings PLC amounting to Rs. 180 million and a decision in the company’s favour by the Inland Revenue Board of Review resulting in a tax reversal of Rs. 444 million.” This latter sale being to Cargills Ceylon.
The First Capital Group includes primary dealer First Capital Treasuries, fixed income securities unit trust First Capital Wealth Fund, investment manager First Capital Asset Management, and listed equity and corporate paper margin lender and debt specialist First Capital Markets.
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DIMO 12-month group revenues up 179%
http://www.sundaytimes.lk/110522/BusinessTimes/bt26.html
Diesel & Motor Engineering PLC (DIMO), the Pandithage family-controlled Sri Lankan motor vehicles and spare parts importer, has released its unaudited, interim results for the financial year ending March 31, 2011, in which it revealed its 12 months group gross turnover to be Rs. 29.35 billion, up 179% year-on-year. In addition, group gross turnover for the three months to end-March 2011 was also shown as Rs. 8.56 billion, a 125% year-on-year increase. On the other hand, cost of sales for the group either outpaced turnover, by rising 187% year-on-year to Rs. 23.06 billion for the 12 months, or matched it, by increasing year-on-year by 125% to Rs. 6.36 billion.
At the same time, financials showed that group after tax profit for the 12 months going up 755% year-on-year, to Rs. 2.12 billion, while after tax profit for the three months to end-March 2011 was Rs. 664.36 million, a year-on-year escalation of 379%. While distribution and finance costs remained low or even negative, at 15% and -43% respectively over the 12 months, these two values showed a steep increase, 98% and 50%, respectively, over the last three months. Group income tax for the 12 months and three months in question has also been raised by 798% and 505% respectively. Also, group inventories have more than doubled over the last 12 months to Rs. 2.64 billion.
Revenues for DIMO’s vehicle parts and service, lighting and power tools, construction and material handling machinery all featured significant year-on-year increases, with the latter two doubling and the former raising revenue by close to Rs. 600 million, it was the brand name vehicle sales business that showed unprecedented elevations in segmental revenue. This area experienced a leap to Rs. 22.21 billion for the last 12 months, when compared to the previous financial year’s Rs. 5.36 billion.
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