CIC Holdings delivers strong 1H performance; ups PAT by 26% to 1.83 b

Monday, 25 October 2021 03:54 - - {{hitsCtrl.values.hits}}

CIC Holdings PLC has delivered a strong performance to record a Profit After Tax of Rs. 1.83 billion at the end of the first half of FY22 up by 26% from a year ago amidst difficult operating conditions, and notwithstanding a multitude of challenges.

The impressive performance comes despite CIC being faced with the rapid outbreak of the third wave of COVID-19 that led to a countrywide lockdown and travel restrictions, as well as a ban on two of its key products, chemical fertilisers and agrochemicals.

CIC’s consolidated revenue in 1H was Rs. 18.5 billion, up by 9.3% from the corresponding period of last year.

CIC said apart from the Crop Solutions sector, all other segments in the group, namely Livestock Solutions, Industrial Solutions, Agri Produce as well as Health and Personal Care, showed steady growth in revenue and profits over the previous year.

Livestock Solutions, in particular, showed remarkable growth over the previous year to record an increase in revenue by 31% and an increase in PAT by 38%.

The Crop Solutions segment, which comprises Plant Nutrients, Seeds and Agro Chemicals, remains an important segment of the group’s business, contributing significantly to both the revenue and the profitability of the group.

However, CIC, in a statement, said with the Government’s decision in May this year to ban the importation of chemical fertilisers and agrochemicals, the group’s top and bottom lines may be impacted during the second half of the year. In order to mitigate any such losses, the group has taken a host of initiatives. Among them is the ramping up of its organic fertiliser production and the tie-ups with companies that are already in organic fertiliser production.

“The CIC group has shown tremendous resilience in the recent past, navigating through difficult times and delivering exceptional results. While the group expects the next six months to be challenging, it is confident of overcoming such challenges to deliver value to all stakeholders,” the company said in its statement.