ECONOMYNEXT – Profits at Distilleries Corporation of Sri Lanka, the island’s largest hard alcohol maker said grew 95 per cent from a year earlier to 2.6 billion rupees, as revenues recovered from Coronavirus lockdowns in the June quarter and gross margins widened, interim accounts showed.
Distilleries reported earnings of 57 cents per share for the quarter. In the six months to September, the firm reported earnings of 78 cents on total profits of 3 billion rupees up from 2.7 billion rupees from the previous year. Distilleries closed 20 cents down to close at 18.50 rupees on Friday.
Revenues with taxes grew 25 per cent to 25.5 billion rupees in the September quarter. Net revenues after turnover taxes grew 30.3 per cent to 9.3 billion rupees, cost of sales was a marginal 0.8 per cent to 4.6 billion rupees, allowing the firm to sharply grow gross profits by 86 per cent to 4.78 billion rupees. Margin can vary based on the local availability of raw materials, analysts say. Operating income has grown a staggering 127 per cent or 59 million rupees while profit from operations gaining 97 per cent to 4.4 billion rupees from 2.2 billion rupees last year. (this 59 million rupees is not material against a 25 billion rupees. It is like one rupee coins falling under your chair???) Finance costs were down to 10 million rupees from 32 million. Sri Lanka returned to normalcy after killing a wave of infections from Western and Asian nations from March 2020 through a tight lockdown but a new outbreak flared in late September. Authorities have since locked down Gampaha and parts of the capital Colombo. (Colombo/Nov13/2020)