CIC Holdings posts 7.5% revenue growth

• Sees strong quarterly earnings rebound

S.H. Amarasekara - Chairman	Aroshan Seresinhe – Group CEO

Diversified agribusiness conglomerate CIC Holdings PLC recorded a 7.49 percent year-on-year increase in revenue to Rs. 64.66 billion for the nine months ending 31 December 2024, driven by strong contributions from its key business segments. 

While earnings declined 43.87 percent to Rs. 6.84 billion during the period, the Group saw a significant 136.5 percent rebound in third-quarter earnings compared to the previous quarter. However, third-quarter earnings were still down 65 percent year-on-year to Rs. 2.53 billion.

Group’s gross profit has increased by 5.81 percent to 16.73 billion with gross profit margin for the period in review stood at 25.87 percent, a decrease of 41 basis points against the same period last year. Profit after tax (PAT) contracted to Rs 5.70 billion from Rs 9.67 billion due to a significant gain of Rs 5.12 billion in the previous period on account of bargain purchase of JKH investment. 

The Group’s Crop Solutions sector emerged as the largest contributor to CIC’s top-line, accounting for 43 percent of total revenue, with Health & Personal Care at 22 percent and Livestock Solutions at 20 percent, of the total revenue.  The other two sectors, Industrial Cluster and Agri Produce, contributed 9 percent and 6 percent to the top-line respectively. 

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth of Agri Produce was significant with a 63 percent increase while Health & Personal Care showed an EBITDA growth of 15 percent. 

However, Group EBITDA decreased by 3 percent compared to the same period last year due to tight macroeconomic conditions and unfavorable weather conditions affecting Group’s agribusiness.  Additionally, the Group’s finance cost declined to Rs. 1.28 billion during the first nine months from Rs. 2.07 billion, reported during the same period last year, owing to lower interest rates and improved macro stability in the economy. The Group operating profit (EBIT) closed at Rs. 8.39 billion (on EBIT margin of 13 percent).  Agri Produce revenue grew from Rs. 4.17 billion to Rs. 4.35 billion, Livestock Solutions revenue grew from Rs. 11.52 billion to Rs. 13.35 billion and Health and Personal care revenue grew from Rs. 12.10 billion to Rs. 14.29 billion. Additionally, Industrial Solutions revenue increased from Rs.5.50 billion to Rs. 6.07 billion.

Commenting on the performance, CIC Holdings Group CEO Aroshan Seresinhe said despite the challenging macroeconomic environment and rising operational costs, CIC Holdings continues to demonstrate resilience by leveraging its diversified portfolio and strong market presence. 

“While some segments faced headwinds, we have seen encouraging growth in key areas such as Health & Personal Care and Livestock Solutions, reflecting our commitment to innovation and meeting evolving customer needs. Our focus remains on optimizing operational efficiencies, addressing cost pressures, and driving long-term value creation for all stakeholders. As we navigate this dynamic landscape, we remain confident in our ability to adapt, grow, and deliver sustainable performance.”