Nov 03, 2010 (LBO) - Sri Lanka's Keells Foods Products made a net profit of 16 million rupees in the September 2010 quarter, returning to profitability after closing a loss-making Indian unit, a stock exchange filing said.The company, a subsidiary of the John Keells Holdings conglomerate, had made a loss of 45 million in the September quarter of the year before.
Sales of Keells Foods products (KFP) rose 17 percent to 533 million rupees in the September 2010 quarter from a year ago.
Earnings per share were 1.87 rupees compared with a loss of 5.31 rupees the year before.
Selling and distribution and administration expenses were sharply lower
The interim accounts filed with the stock exchange said KFP had made additional investments of 37 million rupees in its unit, John Keells Foods India, in the six months ending September 2010.
The unit's operations were restructured during June 2010 with the appointment of a master distributor to serve the Indian market, the stock exchange filing said.
Keells Food entered the Indian market with its own distribution unit following increased demand for its products in South India and the growth of self service supermarkets in the sub-continent.
But the firm had complained of delays in clearing goods from Chennai port and then moving them to other states while its sales team had also performed below expectations.
KFP had also closed its New Delhi office.
source - www.lbo.lk
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