Distilleries toasts FY12 start with 1Q net profit up 50% to Rs. 1.2 b

Wednesday, 17 August 2011 01:17 - - {{hitsCtrl.values.hits}}

Diversified blue chip Distilleries Company of Sri Lanka (DCSL) has toasted the new financial year with net profit up 50% to Rs. 1.24 billion in the first quarter whilst group revenue rose by 35% to Rs. 15. 3 billion.

Consolidated after tax profit for the three months ended on 30 June, 2011 amounted to Rs. 1.36 billion, up by 57.7% in comparison to a year earlier. Pre-tax profit grew by 43% to Rs. 1.99 billion whilst gross profit saw a 20% increase to Rs. 2.95 billion.

DCSL’s dominant beverage business saw turnover improve to Rs. 12.73 billion from Rs. 9.3 billion whilst telecommunications produced a turnover of Rs. 1.1 billion, almost equal to that of the first quarter of last year. Plantations accounted for Rs. 775 million turnover up from Rs. 699.5 million a year earlier. Diversified segment’s turnover was Rs. 702.6 million as against Rs. 178.6 million in the first quarter of FY2010.

Pre-tax profit from beverages rose from Rs. 1.34 billion to Rs. 1.76 billion in 1Q of FY12, whilst plantations brewed Rs. 132.3 million profit, up from Rs. 87 million. Telecom continued its turnaround with a Rs. 15 million profit, as against a loss of Rs. 73 million. Diversified profit was Rs. 47 million as against a loss of Rs. 44 million.

The impressive first quarter performance comes on the back of best ever results achieved in financial year ended on 31 March, 2011. The DCSL Group posted a turnover of Rs. 47 billion in FY 2010/11, which marks an increase of 17% over last year. The Group’s Net Profit after Tax of Rs. 8.3 billion, which was a threefold increase over 2009/10 financial year.

However this included a capital gain on disposal of shares of Rs. 3.9 bn. Profit earned from core business amounts to Rs. 4.4 billion, still up by an impressive 105%.

“The performance of DCSL is commendable given the fact that the industry faced several challenges through FY 2010/11,” Chairman Harry Jayawardena said in his review in the Company’s Annual Report for the year.