Aitken Spence records strong 4Q19; in­vests in Fiji print­ing biz

Daily Mirror (Sri Lanka) - - BUSINESS -

Di­ver­si­fied con­glom­er­ate, Aitken Spence PLC recorded a strong March quar­ter (4Q19) amid strong per­for­mance of the group’s all busi­ness seg­ments, the in­terim fi­nan­cial ac­counts re­leased to the Colombo bourse on Fri­day showed.

Aitken Spence re­ported earn­ings of Rs.4.64 per share or Rs.1.9 bil­lion for the quar­ter un­der re­view com­pared to earn­ings of Rs.4.46 a share or Rs.1.8 bil­lion re­ported for the same pe­riod last year.

The rev­enue for the pe­riod rose to Rs.19 bil­lion from Rs.16.6 bil­lion a year ago while the op­er­at­ing profit edged up to Rs.3.4 bil­lion from Rs.3.2 bil­lion.

The group in­curred a net fi­nance ex­pense of Rs.272.3 mil­lion, up from Rs.249.4 mil­lion a year ago.

Mean­while for the year ended March 31, 2019 (FY19), Aitken Spence re­ported earn­ings of Rs.10.04 per share or Rs.4.01 bil­lion com­pared to earn­ings of Rs.8.77 per share or Rs.3.6 bil­lion.

The group rev­enue rose to Rs.55.7 mil­lion, 5.6 per­cent from a year ago.

A com­pany earn­ings re­lease said rev­enue con­tri­bu­tion from Sri Lankan op­er­a­tions grew 3.7 per­cent year-on-year (YOY) to Rs.38.1 bil­lion while rev­enue from over­seas op­er­a­tions led by Mal­di­vian re­sort op­er­a­tions grew at a faster pace of 9.9 per­cent YOY to Rs.17.6 mil­lion.

The group’s tourism sec­tor re­ported an af­ter­tax profit of Rs.2.1 bil­lion for FY19, down from Rs.2.3 bil­lion on rev­enue of Rs.28.3 bil­lion, up from Rs.25.7 bil­lion a year ago.

The mar­itime and lo­gis­tics sec­tor recorded post-tax profit of Rs.1.7 bil­lion, up from 1.4 bil­lion a year ago. The seg­ments rev­enue also im­proved to Rs.9.4 bil­lion from Rs.8.6 bil­lion.

The strate­gic investment­s seg­ment, which houses the group’s power gen­er­a­tion, print­ing, plan­ta­tions and gar­ments busi­ness, saw the af­ter-tax profit im­prov­ing to Rs.1.7 bil­lion from Rs.1.2 bil­lion a year ago, though rev­enue fell to Rs.15.7 bil­lion from Rs.16.7 bil­lion.

Aitken Spence at­trib­uted the seg­ment’s higher prof­its to turn­around in the gar­ments seg­ment. The group also said its print­ing and pack­ag­ing busi­ness made an in­vest­ment in Fiji in a print­ing busi­ness dur­ing the fi­nan­cial year.

Aitken Spance al­ready has ex­ten­sive port man­age­ment op­er­a­tions in Fiji.

The com­pany also said the state-of-the-art waste-to-en­ergy plant that will be op­er­a­tional in the fourth quar­ter of 2019/20 will add 10 MW to the na­tional grid.

The group’s ser­vices sec­tor, which con­sti­tutes the op­er­a­tions of Con­ti­nen­tal In­sur­ance and agency for Otis elevators, re­ported im­proved post-tax profit of Rs.196.3 mil­lion on rev­enue of Rs.2.2 bil­lion.

““De­spite eco­nomic head­winds in key source mar­kets and in their re­spec­tive lo­ca­tions of op­er­a­tions, we have re­mained re­silient and it is ev­i­dent in the strong fi­nan­cial per­for­mance clearly seen across ge­ogra­phies and sec­tors,” Aitken Spence Deputy Chair­man/ Manag­ing Di­rec­tor Dr. Parakrama Dissanayak­e said.

Busi­ness ty­coon Harry Jayawar­dena con­trolled Mel­sta­corp Lim­ited, Ru­bi­cond En­ter­prises Lim­ited and other re­lated par­ties own 67 per­cent of Aitken Spence while the Em­ploy­ees’ Prov­i­dent Fund has 5.07 per­cent stake be­ing the third largest share­holder.

Dept. Chair­man/ MD Dr.parakrama Dissanayak­e

Chair­man Harry Jayawar­dena

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