Ceylon Leather Products shines with revenue up 233% to top Rs. 1 b mark

Ceylon Leather Products (CLPL), the reputed manufacturer of leather shoes and accessories has reported 3Q2011 revenue growth of 233% to Rs. 1.03 billion on the back of significantly higher domestic sales as well as improved contribution from South Asian Textiles LTD (SATL) in which CPL maintains a 51% stake.

Notwithstanding the slowdown in the global market, it is encouraging to note that the company’s consolidated revenues (inclusive of SATL) have grown twofold during the period.

On the back of the higher turnover, gross profit rose by 38% to Rs. 145 million while other income also increased by 40% to Rs. 26 million during the period boosting the company’s performance.

Despite a sharp increase in finance costs and administrative expenses, CLPL has reported flat earnings growth of Rs. 46 million which is a marginal decline of 4% year on year.

Meanwhile CLPL parent Environmental Resources Investment (GREG) notwithstanding the global slowdown, has reported a sharp rise in its topline during 3Q2011 with revenues growing by 173% to Rs. 1.4 billion.

This was on the back of significantly higher contribution from Ceylon Leather Products and South Asian Textiles notwithstanding a 25% decline in revenues at its porcelain manufacturing subsidiary, Dankotuwa Porcelain.

While GREG’s other income has grown by 182% to Rs. 73 million together with a negative goodwill adjustment of Rs. 112 million, net earnings however declined by 58% to Rs. 67.4 million during the quarter as a result of a sharp rise in administrative expenses during the period at the group.