By Chandeepa Wettasinghe
Keells Food Products PLC, the processed food manufacturing arm of the country’s largest conglomerate, posted a net profit of Rs.95.50 million for its second quarter ended September (2Q16), increasing 80 percent from Rs.53.19 million year-on-year (yoy).
Earnings per share improved to Rs.3.75 from Rs.2.09 yoy.
Fast Moving Consumer Goods (FMCG) businesses have seen phenomenal growth during the year due to consumption driving measures introduced in the interim budget.
The company’s revenue rose 23 percent yoy to Rs.782.51 million, while cost of sales rose 19 percent yoy to Rs.540.58 million, resulting in gross profit improving 33 percent yoy to Rs.241.94 million.
Segment-wise, manufacturing revenue increased to Rs.743.40 million from Rs. 603.50 million yoy, and the segment’s pre-tax profit increased to Rs.118.52 million from Rs.63.86 million yoy.
Trading segment’s revenue increased to Rs.39.11 million from Rs.32.94 million yoy and the pre-tax profit increased to Rs.12.20 million from Rs.6.27 million yoy.
Meanwhile, for the 6 months ended September 30, the firm’s net profits rose 82 percent yoy to Rs.165.96 percent with revenue expanding 20 percent yoy to Rs.1.46 billion.
The balance sheet in 2Q16 was stable compared to 1Q16, with total assets increasing to Rs.2.33 billion from Rs.2.22 billion mainly through increased inventories, receivables and short-term investments.
Total equity increased to Rs.1.69 billion from Rs.1.59 billion in 1Q16 through retained revenue reserves.
Borrowings decreased to Rs.108.83 million from Rs.121.24 million, deferred tax liabilities increased to Rs.129.04 million from Rs.104.58 million and employee benefit liabilities increased to Rs.64.86 million from Rs.52.21 million in the same period.