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| Sunday, 02 March 2003 |
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| News Business Features Editorial
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Carsons records increased profits The Carson Cumberbatch Group, has reported a notable growth in consolidated turnover and profit, before tax, for the nine months ended December 31, 2002. The main contributors to the turnover and profit were the core businesses of the company, brewery, investment holdings in Sri Lanka and palm oil, based in Sri Lanka and the South East Asian region. Consolidated turnover was Rs. 2.9 billion and consolidated profit after tax Rs. 429 million while shareholders' funds including minority interest was Rs. 6.7 billion as at December 31, 2002. A significant rise was seen in palm oil prices, which enabled the sector to generate a reasonable return during the third quarter. This trend is expected to continue during the first half of 2003. The sector turnover increased twofold to Rs. 967 million and profit before tax was Rs. 128 million during the period under review. The new plantation in Indonesia, which currently has an immature area representing 20 per cent of the total planted area, will attain full maturity by the end of the year 2003/04. Income levels in the Malaysian plantations has also seen a notable growth which can be attributed to the increase in price levels, while the planned replanting program being done in the Malaysian plantations has been expedited to ensure competitiveness and productivity in the long-term. Stable economic conditions in the country and growth in sales accounted for the improved performance in the third quarter. The brewery sector reported a turnover of Rs. 1.6 billion during the period under review, while the profit after tax was Rs. 298 million. Subsequent to the budget proposal to issue retail licences to outlets for the sale of soft liquor, the brewery sector is looking to improve sales volumes. The Group's brewery business continues to emphasise the need for speedier implementation of reforms in the regulation of the soft alcohol industry. With the local tourism industry showing signs of recovery, the leisure sector continued to perform moderately with hotels reporting a reduction in losses. However, a significant turnaround in the industry is necessary if they are to wipe out the accumulated losses of Rs. 86.2 million. The airlines sector has made an improved performance and the new representation of Transavia Airlines is expected to contribute to the future growth of this sector. The real estate sector of the group turned in a satisfactory performance during the period under review. With economic recovery, the Carsons Group is considering investing in new business ventures that will add value to shareholders. As one such initiative, Carsons together with a consortium including John Keells Holdings Ltd and Ceylon Biscuits Ltd, bid for the 40 per cent stake in the Cooperative Wholesale Establishment which was up for privatisation. The Ceylon Guardian Investment Trust Limited together with its subsidiaries, reported a consolidated turnover of Rs. 157 million during the period under review and a consolidated profit after tax of Rs. 144 million. As at December 31, 2002, the Group's portfolio had a market value of Rs. 2.5 billion, compared to the market value of Rs. 1.2 billion as at March 31, 2002. The improvement in performance is partly attributed to the recovery in the local stock market and the growth in the economy due to the progress of the ongoing peace initiative. During this period the All Share Price Index and the Milanka Price Index grew 32 per cent and 37 per cent respectively. The portfolio was also enhanced by the recent infusion of new funds through a rights issue. During the nine months under review, the company's portfolio was enhanced by acquiring shares at a cost of Rs. 147 million while the acquisitions by the Group totalled Rs. 202 million. The Group subscribed to the Initial Public Offerings of Sri Lanka Telecom Ltd and Lanka Hospital Corporation Ltd, which were identified as stocks with attractive future potential. Shares worth Rs. 57 million were disposed during the period, by the Group enabling it to acquire other high performing liquid stocks at attractive prices. |
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