Cold Stores invests Rs.270mn in ice cream factory

Ceylon Cold Stores PLC (CCS), a unit of John Keells group, which has interests in consumer goods manufacturing and retailing has invested Rs.270 million in a subsidiary to set up an ice cream factory, the interim financial accounts released by the company to the Colombo Stock Exchange noted. The Colombo Ice Company (Private) Limited (CISL) was incorporated in May 2016 as a wholly owned subsidiary of CCS and the newly formed company had entered into an agreement with the Board of Investment of Sri Lanka (BOI) in July 2016 to lease a land extent of 9 acres for a period of 50 years for the establishment of the ice cream factory.

”A total of Rs 270 million has been infused by CCS as equity in CICL, as at the reporting date,” CCS said. Meanwhile, for the quarter ended September 30, 2016, CCS group reported a net profit of Rs.1.05 billion, up 49 percent Year-on-Year (YoY) riding on the higher consumer demand in the country. The earnings per share (EPS) improved t o R s . 11 . 0 5 Rs.7.43.

The group top line rose 33 percent YoY to Rs.10.8 billion. The gross profit rose 40 percent YoY to Rs.2.01 billion. Both manufacturing and retail segments of the group contributed for the positive performance. The manufacturing segment for the quarter under review reported an aftertax profit of Rs.781.6 million on a Rs.3.7 billion revenue against an after-tax profit of Rs.519.5million and a revenue of 2.9 billion reported for the corresponding period of the previous year. The retail segment saw its post-tax profit soaring to Rs.415.3 million on revenue of Rs.7.1 billion against a post-tax profit of Rs.170.5 million and a revenue of Rs.5.3 billion reported for the corresponding period of the previous year. For the six months ended September 30, 2016, the group posted a net profit of Rs.1.9 billion, up 52 percent. The EPS improved to Rs.20.5 from Rs.13.22. As at September 30, John Keells group held 81 percent of CCS while state-run private sector pension fund, Employees’ Provident Fund had a 0.33 percent stake