CIC Holdings grows with impressive 2Q results

CIC Holdings released the results of its impressive financial performance during the second Quarter of the FY 2011/12 ending 30 September 2011. Group Turnover of the diversified entity grew to Rs. 10.5 billion for the period 1 April to 30 September 2011 as against Rs. 8.9 billion for the corresponding period in 2010. Moreover, Profit After Tax (PAT) reached a healthy Rs. 480 million at the end of Q2, a significant growth compared to Rs. 458 million in the previous year.

Buoyed by the strong financial showing, the group has declared a Dividend of 80 cents for Q2 earnings.  The group achieved this stellar performance despite a challenging start to FY2011/12 which was a result of concerns regarding arsenic in agri products.

CIC Holdings’ Agriculture and Livestock arm and its Consumer and Pharmaceuticals segments were by far the best performing businesses, contributing Rs. 7 billion and Rs. 2.2 billion respectively to the total group turnover as against Rs. 6 billion and Rs. 1.7 billion for the corresponding period in the previous year. Profits for the Agri sector came mainly from CIC Feeds Group and CIC Agri Business Group.  

The company’s CEO and Managing Director S. P. S. Ranatunga commenting on the group’s exceptional Q2 performance said: “I am proud to declare these exciting financial earning figures for FY2011/12 Q2 period. This outstanding performance comes close on the heels our recent dynamic re-branding initiative to move to a holding company status – CIC Holdings PLC.”

“As we forecasted, we were confident this new branding would serve to rejuvenate the brand identities of our diverse businesses. Agriculture and related businesses remains our key focus and we are heartened to note that our efforts are contributing to the nation’s march to achieve food security for all its citizens. The government too has identified agriculture as the pivot on which Sri Lanka can leap frog to economic prosperity and we are proud to say that sustainable methods in our operations are ensuring viability in the sector. The rise in global commodity prices has worked to our strategic advantage emboldening us to invest in core sectors,” he said.

“I am confident that the rest of the FY 2011/12 will fulfil our high aspirations further, fuelled by the fact that the two upcoming quarters are considered the salient months which witness the high sales due to the seasonal buying in the sector along with the fact that it will be the peak period for the food industry as well. We are expecting to make record profits at the end of FY 2011/12 as a direct result of consumer acceptance of our comprehensive value chain of products and services,” Ranatunga added.

The CIC brand’s core unique proposition endures to touch the lives of people across the country by improving their quality of life through health, nutrition and livelihood. The newly conceptualised logo symbolises the sustainable operations and high standards maintained by the company, thereby adding value across the entire group.

The agriculture and livestock business segments remains the key drivers of the group’s turnover and both the respective companies are keen to further expand their presence in these segments. New investments in the dairy industry are being currently earmarked to gain a foothold in the dairy industry as well. The group’s confidence in the natural resources that the country is blessed with has resulted in CIC leasing an800 acre farm in the North that grows diverse fruit crops.

This acquisition will further enhance the food business, thereby restoring livelihoods for farmers in the north.

CIC Holdings’ sustainable operations and its world class governance and transparency best practices have been duly recognised on eminent local and international fora.

The group has received several prestigious awards for its Annual Report 2011, namely, the Arc Award for the Agriculture Sector, the League of American Communication Professionals (LACP) Vision Award - Platinum (2010).

Also seven Annual Reports upto 2010 have won the awards presented by The Institute of Chartered Accountants in Sri Lanka and the South Asian Federation of Accountants (SAFA) in the manufacturing business category.