Distilleries toasts Rs. 8.3 b profit in FY11; Assets top Rs. 53 b

Business tycoon Harry Jayawardena-controlled Distilleries Company of Sri Lanka (DCSL) has achieved a Rs. 8.3 billion after-tax profit in the financial year ended on 31 March, 2011, nearly four times the figure achieved a year earlier.

The windfall profit, up 286% over Rs. 2.15 billion in FY2010, was largely on account of Rs. 3.8 billion profit (realised in the fourth quarter) on disposal of long term investments i.e. 28% stake in Lanka Hospitals Corporation Plc., as well as 70% stake in pioneering unit trust National Asset Management (NAMAL).

However Distilleries Group had healthy growth on top line as well with gross turnover up 25% to Rs. 49.78 billion whilst that of company up 30% to Rs. 39 billion.

Net turnover grew by 16% to Rs. 23.2 billion at Group level and 23% to Rs. 13.5 billion for the company.

Gross profit grew by 31% to Rs. 10.9 billion and by 48% to Rs. 6.12 billion at Group and company level respectively.

Consolidated pre-tax profit was Rs. 10.6 billion, up by 208% over FY2010 whilst for the company it grew by 149% to Rs. 9.9 billion. Net profit attributable to equity holders amounted to Rs. 8.19 billion, as against Rs. 2.13 billion in the previous year.

In the fourth quarter Group gross turnover rose by 43% to Rs. 14 billion and for the company by 37% to Rs. 11.2 billion whilst net turnover improved by 19% to Rs. 6.2 billion and 18% to Rs. 3.5 billion. Group gross profit amounted to Rs. 2.7 billion, up by 87% whilst for the company it grew by 56% to Rs. 1.5 billion.

In FY2011, beverage business which produced a turnover of Rs. 41 billion recorded a Rs. 9.5 billion pre-tax profit, up from Rs. 31.4 billion and Rs. 3.9 billion respectively in the previous year. The second highest profit contribution came from diversified business Rs. 222 million as against a loss of Rs. 53.5 million whilst telecommunications turned to profit of Rs. 107.4 million as against a loss of Rs. 798 million. Its turnover in FY 2911 amounted to Rs. 4.72 billion, up from Rs. 4.9 billion a year earlier. Plantations business whose turnover improved marginally from Rs. 2.5 billion to Rs. 2.7 billion produced a profit of Rs. 193 million, up from Rs. 98.5 million.

Distilleries also saw its consolidated assets top the Rs. 50 billion mark to finish at Rs. 53.1 billion as at 31 March, 2011, up from Rs. 34.8 billion a year earlier. Company’s assets rose to Rs. 32.3 billion from Rs. 20.6 billion. Investments in equity accounted investees rose from Rs. 2.5 billion to Rs. 11.6 billion (Group) and from Rs. 0.9 billion to Rs. 8.2 billion (Company, Group net asset per share was Rs. 106.80, up from Rs. 67.71 whilst for the company it amounted to Rs. 83.73 up from Rs. 50.86 in FY2010.

Group’s current liabilities grew from Rs. 11.3 billion to Rs. 15.3 billion whilst that of the company rose from Rs. 5.2 billion to Rs. 7.08 billion.

A valuation of freehold land & buildings of Distilleries Company Sri Lanka PLC was carried out by Incorporated Valuers A. R. M. M. Kaleel, and S. Sivaskantha was incorporated in the company’s books as at 1 March 2011. Surplus on revaluation was transferred to the revaluation reserve.

Total equity attributable to shareholders of DCSL was Rs. 32 billion, up from Rs. 20.3 billion a year earlier.

On 31 January 2011 the Group increased its investments in shares and voting interest in Browns Beach PLC to 50.33% (value Rs.1.22 billion) and has been accounted as a subsidiary from the same date.

On 27 March 2011 the Group acquired 47.02% (Value Rs. 884,449,273) of shares and voting interests of Pelwatte Sugar Industries Plc. As a result the Pelwatte Sugar Industries Plc and its subsidiaries Pelwatte Sugar Distilleries (Private) Limited, Pelwatte Agriculture & Engineering Services (Private) Limited and Pelwatte Dairy Industries Limited became part of the Group.