Releasing its performance during the first quarter that ended June 30, 2011, Cargills Ceylon PLC said its net profit rose 4 percent to Rs.326 million compared with the corresponding period of the pervious year.
A media statement issued by the company said “this impressive performance is recorded after bearing a pre-operating cost of approximately Rs 100 million excluding the interest cost incurred to fund new investments during the last two quarters of the previous financial year”.
The firm also reported a sales growth of 25%, recording group revenue of Rs 11.2 Bn. The operating profit of Rs 572 Mn reflected a 15% growth over the same period last year.
According to the segmental analysis provided with interim reports, the food and beverages sector of the group has made the biggest contribution to the profitability by recording a profit over Rs.700 million.
Cargills Food City, the retail chain of the company continued to maintain a steady growth in transactions and volume consolidating its position in the industry with the opening of its 4th outlet in the Northern region in Kilinochchi, taking the total number of stores to 164.
The retail sector invested Rs 250 million to increase its modern trade footprint during the quarter.
The Company’s FMCG brands comprising, Magic, Kist, Finest, Sams, Goldi and newly acquired Kotmale , reported volume growth in excess of 20%. “It is noteworthy to state that Magic and Kotmale combined, has the largest market share in the dairy ice cream category” the media statement said.
Cargills also have business interests in the food processing sector and they hold the local franchise of fast food chain KFC.
According to the media statement KFC restaurant chain has also performed remarkably well reporting a double-digit growth in transactions and profit. In the quarter, the chain opened its 16th restaurant.
The company also said that the market acceptance of the ‘3Coins’ beer brand indicated a promising off take during the period under consideration, following their acquisition of the brand in February for Rs.1.4 billion.
“Aggressive expansion has been planned for the brewery” the media statement said.
Cargills also bought a Diana Biscuit Manufacturers Private Limited for Rs.350 million in November, last year.
The media statement said the company has now fully revamped its biscuit facility and re-engineered the product range which would be launched in the upcoming quarter.
“Optimism remains high that the performance in this category would meet up to expectations,” it further noted.
source - www.dailymirror.lk
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