US $ 6mn value-added vegetable export business in the pipeline
Agrochemical giant CIC Holdings PLC (CIC) posted a net profit of Rs.257.07 million for its second quarter ended September 2015 (2Q16), improving 40 percent year-on-year (YoY) through contributions from the agriculture and livestock sector.
Earnings per share rose to Rs.2.71 from Rs.1.94 YoY.
Revenue expanded 15.81 percent YoY to Rs.6.49 billion, while cost of sales increased 19.39 percent YoY to Rs.4.92 billion, resulting in a gross profit of Rs.1.57 billion, an improvement of 5.88 percent YoY.
Distribution expenses fell 2.85 percent YoY to Rs.573.77 million despite increased sales, possibly due to the fall in fuel prices. Administrative expenses increased 10.99 percent YoY to Rs.487.77 million while finance costs fell 8.66 percent YoY to Rs.182.44 million.
The asset base rose to Rs.27.8 billion in 2Q16 from Rs.25.84 billion in 1Q16, while short-term loans and borrowings increased to Rs.9.57 billion from Rs.8.65 billion in the same period.
For the first half ended September, the group’s net profits rose 65.78 percent YoY to Rs.563.84 million, while revenue rose 15.71 percent YoY to Rs.13 billion and cost of sales increased 16.15 percent YoY to Rs.9.66 billion.
In the 1H16, revenue in the agricultural and livestock industry increased to Rs.8.42 billion from Rs.6.91 billion YoY, while operating profits increased to Rs.735.24 million from Rs.541.67 million YoY.
CIC Holdings Chairman S.H. Amarasekara said that the boom was due to a growth in feed demand for livestock and that the group is also initiating a new corn project to meet the demand. He said that the group also intends to start a US $ 6 million value-added vegetable export business, while a Rs.2.12 billion fertilizer subsidy payment is overdue.
The consumer and pharmaceuticals operating profits increased to Rs.276.07 million from Rs.260.60 million YoY as revenue increased to Rs.3.07 billion from Rs.2.81 billion YoY, driven mainly through the company recommencing pharmaceutical production and supplying to the Health Ministry.
Industrial raw materials operating profits rose to Rs.71.12 million from Rs.55.57 YoY while revenue increased to Rs.953.70 from Rs.885.28 million YoY.
The packaging segment operating profits rose to Rs.131.66 million from Rs.104.89 million YoY and revenue rose to Rs.782.55 million from Rs.579.22 million YoY, while the construction industry operating profits fell to Rs.15.69 million from Rs.21.62 million YoY and revenue fell to Rs.137.29 from Rs.174.89 million YoY.