Sri Lanka’s CIC Holdings PLC boosts pre-tax profit in 1Q of FY23 by 200% to Rs. 3.66 billion.
Sri Lanka’s CIC Holdings PLC has reportedly seen a boost in its pre-tax profit in 1Q of FY23 by 200% to Rs. 3.66 billion. The Company earlier recorded a 69% jump in Group revenue to Rs. 15.3 billion with gross profit rising by 196% to Rs. 6.8 billion with margin improving from 25% in FY221Q to 44% in FY231Q. After tax profit recorded a 204% increase to Rs. 2.77 billion. Profit attributable to equity holders of the parent rose by 188% to Rs. 2.11 billion and the net profit margin has risen from 8% to 14%. The Company has recorded an all-round contribution with all of CIC’s business segments performing well. On the revenue side, crop solutions have seen a near doubling (82%) to Rs. 5.15 billion from Rs. 2.8 billion a year ago, Livestock has risen by 68% to Rs. 4.3 billion, Health and personal care products revenue has grown by 28% to Rs. 2.6 billion, Industrial Solutions by 156% to Rs. 2.47 billion and agri produce by 26% to Rs. 1.2 billion.
Group CEO P.A. Seresinhe in the Company’s FY22 Annual Report has stated that in the Crop Solutions sector CIC’s priority will be to develop expertise in technology-based sustainable agricultural methods, while in the Agri Produce cluster, the company will look to leverage on science-based technology to tap into the global superfoods trend.
“Export orientation will be a major priority in our herbal/personal care segment as well. Equally importantly we will focus on proactively tackling supply chain disruptions in order to strengthen our industrial solutions and medical and pharmaceutical operations,” Seresinhe has noted. In FY22, CIC Holdings achieved its best results with an after tax profit of Rs. 4.35 billion, up from the previous record of Rs. 3.85 billion in FY21. The achievement in FY22 was notwithstanding the recognition of a net exchange loss of Rs. 1.5 billion on overseas vendor payables as at 31 March 2022 following the sharp depreciation of the rupee. Group revenue rose by 12% to Rs. 41.75 billion.
The profits recorded by Sri Lanka’s CIC Holdings is indicative of the strength and growth of the country’s private sector. It is also indicative of the growing business potential in the country. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have helped the country position itself as an emerging business destination in the South Asian region. The ongoing economic activities in the country and the overall expansion of key economic sectors have opened new business/investment opportunities in Sri Lanka. Given the growing business potential and opportunities in the country, foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka. Also, foreign businesses could look at forming partnerships or joint ventures with local businesses to expand operations.
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