Cargills posts commendable performance in 1Q

Cargills (Ceylon) Plc has reported commendable performance in the first quarter ended on 30 June 2011 with group revenue up 25% to Rs. 11.2 billion and after tax profit up 6% to Rs. 330 million.

The operating profit of Rs 572 million reflected a 15% growth over the same period last year. Profit before tax at Rs. 435 million was up 9% over the first quarter of 2010/11 financial year.

“This impressive performance is recorded after bearing 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,” Cargills (Ceylon) Managing Director/Deputy CEO M. I. Abdul Wahid said.

Net finance costs had increased to Rs. 127.6 million in FY2012 first quarter from Rs. 82 million a year earlier.

Net profit attributable to equity holders of the parent amounted to Rs. 326 million, up by 4% over the first quarter of last year.

Group assets topped the Rs. 20 billion mark as at 30 June, 2011, from Rs. 19.3 billion as at 31 March, 2011.Net asset value per share was Rs. 32.95 at Group level and Rs. 22.57 at company level up from Rs. 31.47 and Rs. 21.45 respectively at the end of FY2011. Total Group liabilities rose to Rs. 12.6 billion from Rs. 12.2 billion from 31 March, 2011.

‘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 its modern trade footprint during the quarter.

The company’s FMCG brands comprising, Magic, Kist, Finest, Sams, Goldi and newly acquired Kotmale, reported volume growth in excess of 20%. It is noteworthy to state that Magic and Kotmale combined, has the largest market share in the dairy ice cream category.

All FMCG brands have expanded their market presence by driving industry growth and enhancing market share. The company is optimistic that this volume growth would continue, taking us to the objective of leading every category that we operate in.

KFC, Sri Lanka’s largest quick-service-restaurant chain has also performed remarkably well reporting a double-digit growth in transactions and profit.

In the quarter, the chain opened its 16th restaurant at Jawatta Road, Colombo 5.

Wahid said 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,” he added.

“The company has now fully revamped its biscuit facility and re-engineered the product range which would be launched during the upcoming quarter.

Optimism remains high that the performance in this category would meet up to expectations,” the Managing Director said in a review accompanying FY2012 first quarter interim accounts.