CIC Holdings turns resilient; ups FY20 after-tax profit by 133% to Rs. 1 b

Monday, 22 June 2020 01:44 - - {{hitsCtrl.values.hits}}

Chairman Harsha Amarasekera

CIC Holdings PLC has significantly improved its performance in FY20 by posting a Rs. 1 billion after tax profit up by 133% from the previous year.

As per interim results released last week, CIC’s pre-tax profit was Rs. 1.8 billion, up 105% whilst profit from continuing operations grew by 54% to Rs. 1.3 billion.

Last time CIC crossed the Rs. 1 billion mark was in FY17 after having entered the Rs. 1 billion club in FY16.

Net profit attributable to equity holders of the company in FY20 was Rs. 823 million, up by 70% from FY19.

The positive growth in the bottom line in FY20 was despite Group turnover remaining unchanged at Rs. 30.6 billion. Gross profit rose by 7% to Rs. 7.3 billion. Other income had risen to Rs. 355 million from Rs. 202 million.

Additionally the improved performance in FY20 was despite CIC suffering an after tax loss of Rs. 43 million in the fourth quarter as against a profit of Rs. 192 million.

Pre-tax profit amounted to Rs. 270 million in 4Q up from Rs. 166 million a year earlier. There was Rs. 114 million net loss from discontinued operations in 4Q as against a loss of Rs. 106 million a year earlier. Group revenue in 4Q improved by 3% to Rs. 6.8 billion.

In FY20, CIC's crop solutions business managed to maintain its profitability at Rs. 1.25 billion, up from Rs. 1.23 billion whilst the health and personal care segment improved to Rs. 1 billion from Rs. 681 million in FY19. Industrial solutions also increased its segmental results from Rs. 277 million to Rs. 457 million in FY20.

The Agri produce sector achieved a turnaround with a profit of Rs. 105 million as against a loss of Rs. 152 million in FY19. Livestock solutions managed only to post a profit of Rs. 6 million, as against Rs. 208 million in FY19.

Revenue wise crop solutions saw a drop to Rs. 8.8 billion from Rs. 9.5 billion in FY19 whilst health and personal care sustained it at Rs. 8 billon. Livestock solutions revenue improved to Rs. 7.1 billion from Rs. 6.1 billion and industrial solutions too improved from Rs. 3.9 billion to Rs. 4.06 billion. Agri produce saw revenue dip to Rs. 2.8 billion from Rs. 3.6 billion.

The Board of Directors of CIC Holdings comprises of Chairman Harsha Amarasekera, S. Fernando, R.S. Captain, S.M. Enderby, M.P. Jayawardena and P.R. Saldin.