CIC begins FY24 with Rs. 809 m 1Q after tax profit

Tuesday, 25 July 2023 00:57 - - {{hitsCtrl.values.hits}}

CIC Holdings PLC has delivered a strong performance amidst a challenging and evolving economic environment to post a Revenue of Rs. 17 billion and a Profit After Tax of Rs. 808 million at the end of the first quarter of the Financial Year 2023/24.

The 1Q saw operating environment challenging (with falling GDP and being a slow quarter) as a result of high personal and corporate taxes, reduced purchasing power and high consumer prices, along with companies not yet benefitting from falling interest rates, the diversified conglomerate witnessed an increase of 11.5% in in its Revenue and a decrease of 69% in PAT as against the corresponding period last year which recorded an exceptional performance.

It is expected with the falling interest rates witnessed towards the end of QTR 1 FY24, all businesses will be able to reap the benefits of this in future quarters.

The trend setter in Sri Lanka’s Agriculture Sector, CIC recorded a positive top line growth in the Revenue of its key Crop Solutions Business although it witnessed a decline in its bottom line due to compressed margins and lower prices. The Health & Personal Care sector recorded growth in both top line and bottom line mainly due to the branded generics being offered at an affordable price and the slow recovery of Sri Lanka’s Healthcare Industry.

Two other verticals of the CIC Group, Livestock Solutions, and Agri Produce witnessed a decline in its top line and bottom line as against the corresponding previous year’s exceptional performance due to the reduced purchasing power of consumers and compressed margins.

Moving forward, as Sri Lanka slowly but surely makes its economic recovery, along with the growth in the tourism industry, the CIC said the Group remains optimistic of achieving its financials for the current year and contribute positively towards economic recovery and growth and enhance the value of all its stakeholders.