Feb 18, 2010 (LBO) – Sri Lankan coconut products exporter Coco Lanka has said it plans to expand and is holding talks with companies it had identified for possible takeover.
The firm, part of the Renuka group, said in a stock exchange filing that group net profit for the December quarter rose 13 percent to 39.8 million rupees from a year ago although sales fell by 25 percent to 291 million.
Earnings per share for the quarter were 3.16 rupees compared with 2.81 rupees the year before.
“The company, being an investment vehicle for agriculture, food and beverage ventures, is currently evaluating certain acquisitions and green field projects,” Coco Lanka managing director S R Rajiyah said in a statement accompanying the interim accounts.
“With regard to acquisitions, we have identified potential companies and negotiations are underway.”
These investments are to be funded by proceeds from the rights issue which closed on February 16, 2010, he said.
For the nine months ending December 31, 2009, Coco Lanka’s net profit rose 55 percent to 124.7 million rupees while sales fell 14 percent to 917.9 million rupees.
Earnings per share for the nine months were 9.89 rupees compared with 6.36 rupees the previous year.
Finance costs reduced sharply in both the quarter and the nine-month period, the accounts showed.
According to a segmental analysis of the business for the nine month period, revenue from tea shot up 59 percent to 107.5 million rupees.
Revenue from coconut, which accounts for the bulk of revenue, fell 19.6 percent to 689.7 million in the period while that from organic products also fell.
During the period Coco Lanka acquired 60 percent of Ceylon Forestry and 50 percent of Renuka Teas (Cey).
source - www.lbo.lk
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