CT Holdings ends FY12 on a high with stellar 4Q

CT Holdings Plc has finished the 2012 financial year on a high note powered by a stellar fourth quarter.

As per interim results released yesterday (which also qualified it to move out of the default board from a temporary presence yesterday), CT Holdings Plc (CT) has seen its bottom line swell by 93% to Rs. 439.7 million in the fourth quarter whilst for the year it had risen by 40% to Rs. 1.2 billion.

Group after-tax profit rose by 47% to Rs. 1.03 billion in 4Q and by 7% to Rs. 2.4 billion in the full financial year ended on 31 March 2012.

Group revenue for the FY12 was up by 26% to Rs. 59.4 billion whilst for the 4Q it grew by 33% to Rs. 15.8 billion.

The company said high net profit growth was due to all sectors returning a commendable performance during an aggressive investment drive.

“All sectors have reported excellent performances despite an aggressive expansion and investment drive,” it added.

The Retail and FMCG sector continues to return a strong performance with a post-tax profit of Rs. 415.4 Million for the quarter ended. This is a 70% growth over the same period last year. In FY12, the retaul and wholesale distribution sector’s post-tax profit was up to Rs. 967.4 million from Rs. 640.4 million in the previous year. The food processing business saw profits down to Rs. 186 million from Rs. 364.6 million whilst the restaurant business improved to Rs. 188.5 million post-tax profit from Rs. 125 million.

The Retail sector continues to expand its footprint strengthening its position as the leader in modern trade while the FMCG business has diversified its interests. Investments have been made to enhance its position in the dairy sector and also enter growing categories such as biscuits and soft alcohol. All manufacturing facilities have undertaken expansion of capacity to capitalise on the distinct change in consumption patterns stimulated by a rising disposable income.

Ceramic and Tiles reports an exceptional performance despite curtailment in production attributed to some lines being decommissioned for capacity expansion. Lanka Walltiles has expanded capacity from 4,500 to 7,500 sqm per day while Lanka Floortiles has taken its capacity to 9,500 sqm per day from 13,500 sqm.

This is in response to the increased demand stemming from housing and infrastructure development that sees the sector emerging as a key growth driver of the Group. Profit after tax from Ceramics and Tiles reached Rs. 448.8 million for the final quarter. For FY12 profit after tax rose to Rs. 967.4 million from Rs. 543.5 million

The Plantation sector also reports a healthy profit-after-tax of Rs. 64.2 million despite the challenging labour environment that saw a wage hike during the year. The volatility in major export markets continue to dampen tea export earnings while the devaluation of the rupee presents some reprieve for the future. In FY 12, plantations saw post-tax profit down to Rs. 82 million from Rs. 330 million a year earlier.

The Group has also focused on re-establishing its leadership in the entertainment segment having completed the expansion of the Majestic City cinema into a multiplex with three additional screens. The multiplex is the only 3D movie cinema in the country and is well received by the entertainment circuit. The sector would continue on this thrust to build on its heritage as the pioneer cinema company of Sri Lanka. Entertainment business saw a turnaround to post an after-tax profit of Rs. 3.7 million as against a loss of Rs. 4 million in FY11.

The packaging business brought in Rs. 92 million in post-tax profit, up from Rs. 85.7 million in the FY11.

“CT Holdings is strategically positioned in key sectors of the economy that are riding the growth momentum of the new environment,” the company said.

“Mindful of the long-term growth opportunity that the environment presents the Group has undertaken selective expansion and diversification to complement our core businesses. We are confident that these investments would see all sectors exceeding their current performance in the years ahead,” CT Holdings added.