Ceylon Cold Stores Sept. profits up 45%

Ceylon Cold Stores PLC (CCS) saw its September quarter (2Q20) earnings improving 45 percent yearon-year (YOY) to Rs.277.9 million, mainly supported by the group’s manufacturing business segment.

CCS manufactures fizzy drinks, fruit juice, ice cream and frozen foods under the popular Elephant House brand and also operates the John Keells group’s supermarket chain.

The revenue for the period under review rose 13 percent YOY to Rs.16.3 billion, indicating a recovery in consumption in the economy, after the Easter attacks on April 21.

The operating profit rose 82 percent YOY to Rs.821 million despite the increases in distribution and administrative expenses. Other income, which grew 18 percent YOY to Rs.355.7 million, also supported the operating income.

The earnings per share for the quarter improved to Rs.2.92, from Rs.2.01 a year ago.

The manufacturing business segment of the group reported flat revenues of Rs.3.6 billion for the quarter under review but improved the after-tax profit to Rs.275.7 million, from Rs.255 million a year ago.

The supermarket operations of the group returned to profit with an after-tax profit of Rs.3 million on a revenue of Rs.12.7 billion, up from Rs.10.8 billion a year ago.

For the six months ended September 30, 2019, CCS reported earnings of Rs.7.26 per share or Rs.690 million, compared to earnings of Rs.4.53 a share or Rs.430.3 million reported for the same period, last year.

John Keells Holdings PLC and related parties own more than 80 percent of the issued shares of the company.