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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DCSL 1Q12 consolidated gross revenue, net profit up
http://www.sundaytimes.lk/110821/BusinessTimes/bt26.html
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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IT exports value to top US$ 400 mln in 2011
http://www.sundaytimes.lk/110703/BusinessTimes/bt32.html
The value of Sri Lanka’s current IT exports are in the range of US$ 375 million to US$ 400 million, according to Reshan Dewapura, the Chief Executive of the country’s Information and Communication Technology Agency (ICTA).
Speaking at the launch of the National ICT Workforce Survey 2010, Mr. Dewapura also revealed that a sector specific survey by the country’s Export Development Board was currently being done in which more data would be available.
Mr. Dewapura also suggested that, in today’s terms (June 2011), Sri Lanka had a 60,000 IT workforce, which encompassed both IT and non IT sector jobs. This was double the IT workforce in 2006. He also forecasted 10,000 to 12,000 more jobs would be added yearly based on the current growth scenario, but did not discount that this number could be even higher.
Mr. Dewapura also noted that it was due to the success of the e-Sri Lanka (e-government) initiative that the country’s global ranking in the World Economic Forum’s Network Readiness Index (NRI) had dropped to a more investor friendly 48 compared to its previous high of 72, the biggest increase by any country over the last five years. He also revealed that Sri Lanka was in the process of getting a country benchmark done by a global technology analyst, but that the associated cost was proving to be high. Technology analyst Gartner was suggested as being one of the firms being looked into by Sri Lanka for this benchmark.
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Surge in auto imports in 2010, up by ten-fold
http://www.sundaytimes.lk/110123/BusinessTimes/bt11.html
Sri Lanka’s United Motors has nearly doubled (98.5%) its third quarter consolidated revenues to Rs. 3.42 billion, from Rs. 1.72 billion in the last financial quarter, according to unaudited financials for the nine months ending December 31, 2010. The third company to release its results in the current earnings season, United Motors also showed a significant increase (70.5%) in consolidated revenues for the nine months to end-December 2010, which ultimately reached Rs. 7.03 billion.
United Motors vehicle sales performance somewhat mirrors the local automobile industry’s performance in 2010 where a tenfold increase in motor car imports has been witnessed over the year. This is due to import taxes being effectively halved in June 2010, with official estimates indicating about 10,000 cars having been imported between June and September. This can be compared to just over a 1,000 cars imported over the entire 2009 period.
The company said that segment-wise, the jump in revenues was mainly attributable to a more than doubling of vehicle sales with spare parts, repairs and servicing and lubricants performance also experiencing double digit growth. On the other hand, the company’s tyre business witnessed negligible growth, while its finance leasing unit suffered a loss of revenue of more than 60%.
Additionally, the company also recorded after-tax net profits of Rs. 364.39 million for the three months to end-December 2010, a 1,132.3% year-on-year increase from 2009’s Rs. 32.18 million. After-tax net profits for the nine months ending December 31 were also shown to take off, ultimately reaching Rs. 559.18 million in 2010. This was from a loss of Rs. 60.80 million in 2009. All together resulting in a year-on-year increase of 1,019.6% in after-tax net profits.
The company also recorded an earnings per share increase of close to a 1000 % to Rs. 8.31 for the nine month period to end-December 2010. This is compared to a loss per share of Rs. 0.90 for the same period in 2009. However, this follows a one-to-one share split carried out by United Motors in the latter half of 2010. The company also recorded significant increases in key financial ratios such as Net Asset Vale Per Share, Current Ratio, Quick Asset Ratio and Interest Cover, while its Consolidated Borrowing to Equity Ratio fell to 43.06% at end-December 2010, from 128.68% at end-December 2009.
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