Higher consumer demand boosts Cold Stores profits

Ceylon Cold Stores PLC, a unit of the John Keells group, which has interests in consumer goods manufacturing and retailing, saw its net profit for the March quarter (4Q16) rising as much as 61 percent year-on-year to Rs.966.9 million, capitalizing on the higher consumer demand that prevailed. The earnings per share (EPS) improved to Rs.10.17 from Rs.6.33. C e y l o n C o l d S t o r e s i s t h e manufacturer of popular beverages under the brand name Elephant House and also runs John Keells group’s super market chain, Keells Super.

The top line of the company rose 41 percent yoy to Rs.1.69 billion as revenue for the quarter rose 28 percent yoy to Rs.9.51 billion. The cost of sales also rose, but at a lesser pace, to Rs.7.82 billion. The operating profit rose 56 percent yoy to Rs.1.3 billion. Net finance income rose 432 percent yoy to Rs.41.4 million. A segmental analysis showed the manufacturing sector recording revenue of Rs.3.55 billion for the quarter under review, up from Rs.2.78 billion a year ago.

The operating profit of the segment was Rs.1.18 billion, up from Rs. 618.2 million while post-tax profit grew more than 100 percent to Rs.971.8 million. The retail segment also recorded higher revenue of Rs.6.02 billion against Rs.4.7 billion a year ago. The operating profit stood at Rs.416.8 million, up from Rs.212.6 million, while post-tax profit rose to Rs.304.1 million from Rs.148.1 million. Meanwhile, for the year ended March 31, 2016 (FY16), the Ceylon Cold Stores’ net profit soared 88 percent yoy to Rs.2.87 billion, with an EPS of 30.25, up from Rs.16.05. As at March 31, 2016, John Keells Holdings PLC held 70.61 percent of the issued shares of the company while its associate company Whittal Boustead (Pvt) Ltd held 10.7 percent. Employees’ Provident Fund (EPF) being the eighth largest shareholder held 0.33 percent