Thursday Nov 28, 2024
Thursday Nov 28, 2024
Tuesday, 6 February 2024 00:59 - - {{hitsCtrl.values.hits}}
CIC Holdings PLC said it continued its onward journey to post an impressive Profit After Tax of Rs. 9.6 billion at the end of nine months for the financial year 2023/24.
The PAT of Rs. 9.64 billion which was an increase of 14.3% over the corresponding period last year was spurred by the inclusion of a profit of Rs. 5.12 billion as a result of CIC Holdings acquiring a sizable stake (6.25%) of shares of John Keells Holdings PLC as at date. The Group results, excluding this aspect, are in line with budget, CIC said in a statement.
The diversified conglomerate which consists of several key sectors which are aligned to most nation building Initiatives, inclusive of agriculture, livestock solutions, health and personal care/Consumer and industrial chemicals saw its revenue expand by 14% over the previous year to Rs. 60.1 billion.
CIC said the agriculture sector which is one of the key sectors in the group witnessed a steep increase in revenue although profits declined largely due to compressed margins and a far more competitive landscape. Revenue growth was witnessed in the agri produce and herbal and personal care sectors while a decline in revenue was recorded in the livestock and industrial solutions sectors when compared to the corresponding period of last year.
High personal and corporate taxes, impacting disposable income across most strata of society had a bearing on consumer demand which resulted in an erosion of discretionary spending thereby impacting the bottom line of the Livestock and Industrial sectors which recorded a contraction while agri produce and herbal and personal care recorded a marginal increase in profits when compared to the corresponding period of last year.
The CIC Group said it remains optimistic and will continue to perform in keeping with its budget as Sri Lanka continues with its economic recovery albeit slowly notwithstanding the short term economic stresses that are being witnessed across certain segments due to the strict fiscal management measures being adopted by the State in line with the IMF program. In this backdrop, CIC envisages being able to contribute positively towards the island’s economic recovery and growth as well as to enhance the value proposition for all its stakeholders.
