Distilleries 1Q saved by beverage operations

Distilleries Company of Sri Lanka PLC posted a net profit of Rs.1.76 billion for the first quarter of 2015/16 (1Q16), up 5 percent year-on-year (YoY), owing to a positive performance in beverages, which cushioned the weak performances of all the other segments.

The gross revenue increased 14.77 percent YoY to Rs.19.23 billion; yet, the net revenue increased just 7.61 percent YoY to Rs.7.58 billion, possibly due to the increased excise duty in October 2014, which increased turnover-based taxes to Rs.11.65 billion from Rs.8.12 billion YoY.

The cost of sales increased 12.59 percent YoY to Rs.4.27 billion while gross profits increased 1.8 percent YoY to Rs.3.31 billion.

Operating profits decreased 6.48 percent YoY to Rs.2.18 billion, due to the 44 percent YoY fall in the other operating income to Rs.209.73 million and the administrative expenses increasing 6.11 percent YoY to Rs.869.91 million, despite the distribution expenses falling 3.66 percent YoY to Rs.457.58 million.
The net finance income increased to Rs.103.24 million from a net finance cost of Rs.37.97 million. The main beverages segment—both production and imported sales—recorded a turnover of Rs.16.98 billion, up from Rs.12.56 billion YoY.

The plantation revenues fell to Rs.564.31 million from Rs.732.42 million YoY, telecommunications—represented by Lanka Bell—revenues fell to Rs.829.60 million from Rs.885.16 million YoY and the diversified sectors, which include sugar, financial services and logistics, posted revenues of Rs.857 million compared to Rs.979.48 million YoY.

The beverages segment profit before tax (PBT) increased to Rs.2.12 billion from Rs.1.94 billion YoY, plantations recorded a loss before tax of Rs.102.35 million from a PBT of Rs.23.25 million YoY and telecommunications too recorded a loss before tax of Rs.156.74 million compared to a PBT of Rs.2.86 million YoY, while diversified PBT increased to Rs.419.83 million from Rs.323.63 million YoY.

Chairman/MD Harry Jayawardena controls majority of the shares through Milford Exports (Ceylon) (Pvt.) Limited with 41.49 percent of shares, Lanka Milk Food (CWE) Limited with 12.65 percent and Melstacorp Limited with 2.88 percent.


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