CIC March net up 43% over lower admin cost

8 June 2016 10:33 am - 0     - {{hitsCtrl.values.hits}}


The CIC Holdings PLC group increased its March quarter net profit 43 percent to Rs.229 million or Rs.2.41 a share for the quarter ended March 31, 2016 from a year ago as the administrative expenses halved, the interim financial results showed. The share is trading at Rs.96.0 on the Colombo bourse. The top line rose just under 8 percent year-on-year (YoY) to Rs.6.2 billion but the cost of sales rose 14 percent YoY to Rs.4.9 billion.

This narrowed the gross profit by 10 percent YoY to Rs.1.28 billion. The group was once battered by the slower payments by the government for fertilizer but the practice was done away under the new regime, which was welcomed by the company. According to CIC Chairman Harsha Amarasekera, the fertilizer subsidy receivable at the end of December 2015 was Rs.2.27 billion, down from Rs.2.83 billion in 2014. “The removal of the fertilizer subsidy mechanism should result in this gradually being fully paid down in FY 17,” Amarasekara said in an earnings release.

The group trade receivables rose by just under Rs.900 million to Rs.4.06 billion during the year to March 31, 2016, while there was a balance of Rs.2.54 billion under other receivables, down from Rs.3.7 billion a year ago. Other income narrowed by 11 percent YoY to Rs.94 million as the group reclassified the direct sales commission of Rs.55 million under ‘other incomes’ from earlier ‘cost of sales’. The distribution expenses rose by a marginal 3 percent YoY to Rs.778 million. The administrative expenses dropped by as much as 50 percent YoY to Rs.202 million. “The salaries of sales personnel amounting to Rs.207.47 million, which was recorded in administrative expenses in the financial statements for the year ended March 31, 2015, were reclassified as a distribution expense for the year end March 31, 2016,” a note to the financial statements said.

The finance cost rose 14 percent YoY to Rs.191 million as the short-term borrowings increased. On November 30, 2015, CIC concluded the sale of Chemifix trademark and other brands associated with PVAC adhesives business to Pidilite Lanka Private Limited, a reputed adhesive manufacturer for Rs.345 million. For the year ended March 31, 2016, the CIC group posted a post-tax profit of Rs.1.35 billion or Rs.14.29 a share, recording an increase of 78 percent. The top line rose by little over 13 percent Rs.26.7 billion. All business segments ended the year in a positive note with the agri produce business turning in an operating profit of Rs.43 million from a loss of Rs.20 million a year ago. The crop solutions business saw its operating profit narrowing 15 percent to Rs.662 million on a revenue of Rs.6.74 billion, up from Rs.6.30 billion. Health and personal care segment increased its profit 21 percent to Rs.638 million. The segment’s revenue rose to Rs.6.6 billion from Rs.5.9 billion. Industrial solutions business increased the profit to Rs.381 million from Rs.309 million a year ago. The revenue rose to Rs.3.97 billion from Rs.3.54 billion.

The livestock solutions unit had the highest turnaround with the profit increasing to Rs.519 million from Rs.229 million a year ago. The revenue also increased to Rs.7.1 billion from Rs.5.7 billion a year ago. As of March 31, 2016, Paints & General Industries Limited held a 53.31 percent stake in the group while the statecontrolled private sector pension fund, the Employees’ Provident Fund held 8.26 percent, up from a 6.73 percent stake three months ago, being the second largest shareholder.

  Comments - 0

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment

The 20th Amendment Bill Lest We Forget

Strident calls were repeatedly made from many quarters for the 19th Amendment

Public transport 'side-laned'?

“Miss, mantheeru neethiya nisa api bus passen yanna one. Ithin drop eka par

Land acquisitions in Hanthana and Knuckles Mountain ranges

Sri Lankans will soon lose their opportunity to boast about the rich biodiver

Wanathawilluwa forest clearance: Whodunit?

Days after the Anawilundawa Ramsar Wetland, situated in Puttalam District, ma