Carson explains external factors caused major variance in 1Q results

Carson Cumberbatch Plc has explained the reasons for the major variance in its FY13 first quarter results ahead of their release.

As per an extract of Group income statement drawn from unaudited accounts based on existing SLAS environment, profit after tax for 1Q had slumped to Rs. 27.3 million, from Rs. 5.7 billion a year earlier. Pre-tax profit is down to Rs. 634 million as opposed to Rs. 6.7 billion in 1Q of FY12. Group revenue however was Rs. 19.6 billion, up from Rs. 12.7 billion a year ago.

“Having noted that the Company and the Group’s performance have deviated from the trends set in during the past periods, the Board is of the view that shareholders should be kept informed about this variance ahead of the release of the first quarter results,” Carson said in a filing to the CSE.

“Whilst observing that the strong and diversified core business fundamentals of the Group have not been eroded in anyway, the dip in profit after tax is explained as a combination of the manifestation of market/industry vagaries Group’s businesses operate in and the absence of significant one-off transactions during the quarter under review as opposed to same period last year,” Carson said.

It said quarter earnings were hit by falling palm oil prices by 7%YoY, drop in palm production of 11% YoY due to weather conditions, export duty changes in Indonesia affecting oils and fats segment of the industry operating in Malaysia, exchange rate drop in both Indonesian Rupiah and Sri Lankan Rupee against the US Dollar and mark to market valuation drop due to fall in the Colombo Stock Market, resulting in a consolidated profit after tax of Rs. 27.3 m as against Rs. 5.7 b for the first quarter of FY 2011/12.

“A detailed review explaining the performance of the Company and the Group during the quarter under review would be included in the interim accounts to be released later,” Carsons added.