Keells Food to resume exports to India

L e a d e r i n p r o c e s s e d f o o d manufacturing, Keells Food Products PLC, a unit of John Keells group, is hoping to generate greater income from exporting its products in the 2016/17 financial year, as it plans to resume exports to India. India’s regulations with regard to point of entry had changed 2 years ago, hindering exports. “It is heartening to note that these regulations have been relaxed during quarter four (4) of the year under review and we are hopeful of recommencing our exports to India during the 2016/17 financial year,” John Keells Group Chairman Susantha Ratnayake said in his annual review.

Attempts by the company to export to the Indian market a couple of years back were unsuccessful due to certain non-tariff barriers relating to compliance procedures. Meanwhile, Keells Food Products posted a net profit of Rs. 70.71 million for the March quarter ended March 31, 2016 (4Q16), recording a 11 percent decline year-on-year (YoY), probably reflecting a slowdown in consumption. Revenue increased 6 percent YoY to Rs. 723.53 million while cost of sales increased 8 percent YoY to Rs. 521.23 million. Gross profits increased 3 percent YoY to Rs. 202.30 million. Operational profits declined 7 percent YoY to Rs. 88.16 million. The asset base as at March 31, 2016 improved to Rs. 2.41 billion from Rs. 2.31 billion as at March 31, 2015 through receivables and short-term investments. Total equity increased to Rs. 1.77 billion from Rs. 1.70 billion through revenue reserves during the same period. Long and short-term borrowings decreased to Rs. 133.79 million, from Rs. 184 million, while deferred tax liabilities increased to Rs. 164.63 million from Rs. 92.05 million. For the 2016 financial year, Keells Food Products posted a net profit of Rs. 334.71 million, improving 28 percent YoY. Earnings per share increased to Rs. 13.13 from Rs. 10.25 YoY, while a dividend per share increased to Rs. 11 from Rs. 5 YoY. Revenue increased 16 percent YoY to Rs. 3.03 billion, while cost of sales increased 15 percent YoY to Rs. 2.14 billion YoY. Operational profits increased 26 percent YoY to Rs. 426.78 million. Tax expenses increased 41 percent YoY to Rs. 98.68 million. John Keells Holdings and subsidiaries as at March 31, 2016 held 91.57 percent of the issued shares of the company while the public float remained at 8.38 percent. (CW)